Municipalities Begin to Pay Water Boards After Equitable Share Withholding

Strategic Insights -

The Portfolio Committee on Water and Sanitation in South Africa has witnessed a significant shift in municipalities' behavior towards paying water boards for services received, following the withholding of their equitable share. The committee held a meeting with the National Treasury, the Department of Water and Sanitation, and the Department of Cooperative Governance and Traditional Affairs to discuss the matter. Chairperson Mr. Leon Basson emphasized the importance of clean governance and municipality responsibility in paying for services. The committee welcomed improved payment patterns from some municipalities, such as Sekhukhune District Municipality, Govan Mbeki Local Municipality, and Rand West City Local Municipality, which made payments totaling R278 million between 7 July and 25 August 2025.

Key Takeaways:

  • The Portfolio Committee on Water and Sanitation has seen improved payment patterns from municipalities towards water boards, with a total payment of R278 million between 7 July and 25 August 2025.
  • The committee has maintained that the current municipal debt to water boards, amounting to R24.58 billion (R21.91 billion, excluding interest), is unsustainable and poses a threat to the entire water value chain.
  • The withholding of equitable share allocations has been instrumental in encouraging municipalities to pay for services received, with notable payments made by Sekhukhune District Municipality (R30.5 million), Govan Mbeki Local Municipality (R70 million), and Rand West City Local Municipality (R72 million).
  • The National Treasury has emphasized that the intervention of withholding equitable share is temporary and that long-term solutions are needed to ensure that municipalities pay for services received.
  • Committee member Mr. Visvin Reddy called for greater accountability against municipalities from the Department of Cooperative Governance and Traditional Affairs, suggesting that they present monthly reports on payment of debt to water boards to ensure the viability of the water value chain.
  • The meeting highlighted the importance of collaborative action between departments in addressing the ballooning debt municipalities owe to water boards.

Statistics:

  • R24.58 billion: The current municipal debt to water boards, which is unsustainable and poses a threat to the entire water value chain.
  • R21.91 billion: The municipal debt to water boards excluding interest.
  • R278 million: The total payments made by municipalities towards water boards between 7 July and 25 August 2025.
  • R30.5 million: The payment made by Sekhukhune District Municipality towards its arrears.
  • R70 million: The payment made by Govan Mbeki Local Municipality towards its current invoices.
  • R72 million: The payment made by Rand West City Local Municipality towards its current invoices.

Sources:

  • Parliament of South Africa, "Portfolio Committee on Water and Sanitation welcomes impact of withholding municipalities' equitable share" (16 Sep 2025)