• Caught in the debt trap?

    Help us help you by taking our second annual Debt survey and you could win R3 000.

  • Rich man, poor man

    Culture change from below is the only way to overcome poverty, says Leopold Scholtz.

  • Tech bubble talk

    After the tech euphoria of 2013, the fast-moving sector has hit a speed bump.

Data provided by McGregor BFA
All data is delayed
Loading...
See More

Councils drowning in water debt

Apr 14 2011 17:27 Sapa

Related Articles

Jobs SA's most urgent need: survey

Dutch grant for clean water

Adopt-a-council bailout proposed

Shiceka: No decision yet on councils

Councils owed billions in debt

MPs approve bill to revamp councils

 

Cape Town - Municipalities owe South Africa's water boards, which supply them with bulk water, more than R1.7bn and the debt is growing monthly, Water Affairs Minister Edna Molewa confirmed on Thursday.

"(This) municipal debt is in fact growing," she told a media briefing at Parliament, ahead of debate on her department's Budget vote.

It was happening in areas where there were many indigent people.

The department was working with the country's 13 water boards to "determine mechanisms" to collect the money.

Molewa confirmed the total debt at the beginning of the year was R1.7bn an amount almost equal to 20% of her department's current (2011/12) national budget.

She told journalists the long-term solution to the problem was job creation in areas where people could currently not afford to pay for water.

"There has been an increase (in the debt over the past two years), but this is obviously linked to the financial crisis that we saw last year, and it's understandable that as a country we're going through such a problem.

"We are doing all in our power to improve on this (debt) collection."

Molewa said while the total debt was growing, two of the boards, Umgeni Water and Bloem Water, had managed great improvements in their situation.

edna molewa  |  councils  |  municipalities  |  water
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
8 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

Fewer high-risk election areas - Mthethwa

There are fewer high-risk election areas this year compared to past elections, Police Minister Nathi Mthethwa has said while visiting Manenberg in Cape Town.

 
 

Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...