Improved Payment Patterns by Municipalities to Water Boards, but Unresolved Debt Remains a Concern

The Portfolio Committee on Water and Sanitation has welcomed early indications of improved payment patterns by certain municipalities to water boards following a National Treasury intervention. National Treasury withheld the Local Government Equitable Share of defaulting municipalities, resulting in payments totaling R278 million between July 7 and August 25, 2025. The Chairperson of the committee, Mr. Leon Basson, highlighted the significance of this intervention, stating that it highlights the positive impact of addressing municipalities' debt to water boards. However, the committee cautioned that this intervention primarily addresses current debt and not long-standing arrears, emphasizing the need for a plan to address this historical debt to restore the financial viability of water boards.

Key Takeaways:

• The municipalities of Sekhukhune District, Govan Mbeki, and Rand West City have made significant payments towards their arrears and current invoices, totaling R30.5 million, R70 million, and R72 million, respectively.
• The National Treasury intervention resulted in R278 million being paid by defaulting municipalities to water boards between July 7 and August 25, 2025.
• The committee emphasized the need for water boards to continue enforcing standardized debt collection and credit-control measures, including the consistent application of water restrictions and the attachment of municipal bank accounts.
• The Chairperson, Mr. Leon Basson, stressed that the withholding of the equitable share is a corrective measure aimed at ensuring responsible governance and financial accountability at local government level.
• Members called for increased investment in the maintenance and upgrading of water infrastructure to reduce non-revenue water losses, a major contributor to high water bills.

Statistics:

• Municipalities' debt to water boards amounts to R24.58 billion, which is unsustainable and threatens the entire water value chain.
• National Treasury withheld the Local Government Equitable Share from 34 defaulting municipalities in December 2024, March 2025, and July 2025.
• The total payment made by defaulting municipalities to water boards between July 7 and August 25, 2025, is R278 million.

Sources:

• Portfolio Committee on Water and Sanitation Press Release, December 2024
• National Treasury Intervention in Terms of Section 216(2) of the Constitution
• Parliament of South Africa Press Release, March 2025
• Budget Report 2025, National Treasury of the Republic of South Africa