Municipality disputes “misinformation” linking water crisis to Rand Water debt
DELMAS – In a shocking twist of events, the Victor Khanye Local Municipality (VKLM) might see its financial woes worsen, as it has been listed among five municipalities at risk of having their equitable share of funds withheld by the National Treasury. This development, announced during a parliamentary presentation by Minister of Water and Sanitation Pemmy Majodina on Tuesday, November 19, highlights ongoing challenges in governance and service delivery across the affected areas. The municipality, which has been financially strained for a long time, has been working tirelessly to turn the tide with the introduction of a credit policy in July 2024, aimed at improving revenue collection.
The minister cited provisions allowing government to block payments to municipalities failing to demonstrate financial stability or effective governance. “The purpose of interventions should be to restore financial stability, improve service delivery, and ensure good governance in distressed municipalities,” Treasury noted. Victor Khanye, alongside Matjhabeng, Kopanong, Thabazimbi, and Merafong City, stands to lose nearly R500 million in funds scheduled for release early December and March 2025. This move is part of a broader strategy to compel local governments to prioritize essential services. According to the DWS, Treasury will only begin paying the municipalities in batches once they start paying their debts with the water boards. In early June this year, Rand Water gave VKLM 30 days to pay its nearly R400 million debt or face a 20% reduction in its bulk potable water services. Reports surfaced on social media linking the recent water crisis to the municipality’s debt to Rand Water. In response to recent controversies over water supply disruptions, the Victor Khanye Local Municipality issued a statement disputing claims that these issues are directly tied to its debt owed to Rand Water. The municipality acknowledged the debt but confirmed that a repayment plan is already in place.
“Rand Water is facing constraints in their supply systems, with demand from all customers exceeding their capacity. This affects areas across Mpumalanga, including Govan Mbeki LM, VKLM, Thembisile Hani LM, the entirety of Gauteng, and parts of North West. Most customers within Rand Water’s system are impacted by these constraints,” the municipality stated.
The municipality highlighted additional challenges, explaining that “Rand Water is operating at full capacity and cannot increase water supply. The constraints are due to excessive water withdrawal by municipalities. Rand Water’s extraction licence from the Department of Water and Sanitation limits further water extraction from current sources. To prevent system collapse, Rand Water is implementing water shedding as necessary.”
VKLM, which relies solely on Rand Water for its bulk supply, admitted this dependency hampers consistent service delivery but assured residents that efforts are underway to find alternatives. “The municipality is seeking alternative solutions to decrease dependence on Rand Water,” it noted.
Residents have been encouraged to store water when available and adhere to water conservation measures as the municipality works to mitigate the impact of the crisis.
The municipality concluded by apologising for any inconvenience caused and committing to sharing daily updates to keep residents informed.
