Plan to clear historic municipal debt to water boards

The department of water and sanitation is in advanced discussions with National Treasury over scrapping the historic water debt that some municipalities owe to cash-strapped water boards.

- Eric Mthobeli Naki

As of June 2024, municipalities owed R22.36 billion to water boards, a 151% increase from 2019.

Many of the boards have publicly expressed concern the debt threatened their financial stability and the water sector as a whole.

Department spokesperson Wisane Mavasa said they were close to finalising a debt write-off mechanism which would allow municipal debt to be written off once municipalities had established a good payment record for current invoices.

This would start with one-third of the old debt being paid for 12 months covering three years. The municipalities must maintain a good payment record in each of the 12 months.