HEIDELBERG TIMES

Wed 11:43 am
Jul 17, 2024
Neil Rice
Neil Rice

Rand Water DEEPLY CONCERNED ABOUT DEFAULTING MUNICIPALITIES

Lesedi Local Municipality-LLM owes nearly R50-million to water utility.
Rand Water has voiced it’s concern and asked National Treasury to intervene as a number of municipalities continue to default on their outstanding debt and not make the arranged payments.
The current payment patterns, says the water utility, “threaten the liquidity, financial performance and sustainability of Rand Water.”
” It is important to note that should Rand Water be placed under further ongoing financial risk, the entity will be plunged into a debt crisis which will impact all municipalities currently serviced by Rand Water and curtail the ability to finance bulk water infrastructure and to undertake adequate maintenance of its extensive network.”
Lesedi Local Municipality currently owes Rand water R48 476 180.41 which, although is a lot less than some other municipalities, creates a worrying picture for all who reside in the area. Infrastructure is already fragile at best and the fact that Rand Water openly admits that it may no longer be able to expand and improve it’s current system will keep possible investment in new industry out of our area.