DWS having mixed success with Treasury withholding grant funding to municipalities that don't pay water boards on time

The Department of Water and Sanitation says it’s having mixed success in the National Treasury withholding grant funding to municipalities that don’t pay their bills to water boards on time.

But it says it has managed to save at least two water boards from bankruptcy by enforcing this approach.

As of the end of July, municipalities owed water boards over R25 billion.

Addressing Parliament’s portfolio committee on Tuesday, Deputy Minister of Water and Sanitation Sello Seithlolo said that the Vaal Central and Magalies water boards were now in a better financial position since municipalities had been forced to pay them within 30 days or not receive their quarterly funding from the national fiscus.

This measure has been in place for three financial quarters.

"This mechanism will remain in place until the most non-compliant municipalities demonstrate consistent payment of their current invoices," Seithlolo said.

The department’s director-general, Sean Phillips, said that since December, it had received 35 requests for funding to municipalities to be withheld.

"There’s still a lot of progress to be made. It’s a mixed picture: very good progress in some municipalities, not yet sufficient progress in other municipalities."

Phillips said this approach remains a last resort to get non-compliant municipalities to pay their current debt to bulk water suppliers.

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