Debt sinking department

The Democratic Alliance is calling for a probe of the department of water and sanitation after it emerged that it owes five water boards in the country a total of R480 million.

Rand Water in Gauteng is owed R11 million, Lepelle Northern Water in Limpopo is due R245 million, Mhlathuze in KwaZulu-Natal is owed R63 million, Magalies Water Board in the Northern Cape is owed R3.2 million and Sedibeng in North West is due an amount of R158 million.

This week the Democratic Alliance made a request to the chairperson of parliament’s portfolio committee on water and sanitation, Lulu Johnson, for an investigation into the financial affairs of the department.

This follows on the heels of a DA announcement that Minister of Water and Sanitation Nomvula Mokonyane’s department is operating on an overdraft of nearly R3 billion from the Reserve Bank.

The DA also announced the department has close to R5 billion in outstanding debts for water-related projects across the country.

DA parliamentary press officer Marshalle Frederiks said the request for a probe was extended to the National Treasury and the auditor-general and that “both agreed to investigate” the department.

“In February this year, the department confirmed the water trading entity has an outstanding overdraft with the Reserve Bank to the tune of R3 billion.”

In a presentation to the portfolio committee in March, Mokonyane confirmed her department has financial difficulties and admitted that its unpaid outstanding invoices amounted to almost R1.5 billion.

“In the same vein, Mokonyane further admitted, in response to a DA parliamentary question, that the department owed various water boards close to R500 million.

“This means the department’s backlog in paying contractors and outstanding invoices will have a negative impact on projects in progress and most will not be complete in the stipulated time. This could lead to legal action against the department, which will result in even further financial troubles,” said Frederiks.

Yesterday, the department would not confirm or deny the DA’s claims. Departmental spokesperson Sputnik Ratau said the department viewed the matter in a very serious light and that it was receiving attention.

This could lead to legal action against the department, which will result in more financial trouble. Marshalle Frederiks DA press officer