More money woes for Emfuleni Municipality
MORE financial woes have befallen the cash-strapped Emfuleni Local Municipality after Midvaal Local Municipality announced it will withhold payments due to its failure to supply water.
The office of Midvaal executive mayor Bongani Baloyi said on Sunday afternoon the Midvaal Municipality took a decision to withhold all payments due to the embattled Emfuleni Municipality in relation to water supply at Risiville with immediate effect.
“Risiville is a Midvaal demarcated area which receives water supply from Three Rivers East which is Emfuleni supply area. It can be confirmed that there is reduction in supply systems causing low, sometimes no, water supply volume and pressures in Risiville.”
The water reductions are the result of money due to water utility Rand Water by the Emfuleni Municipality.
The municipality’s debt stands at around R4.6 billion, according to the Gauteng Department of Cooperative Governance and Traditional Affairs.
Emfuleni’s largest creditor is Eskom, which the municipality owes R3.3bn as of the end of January – R3.2bn of the debt is older than 90 days.
The municipality further owes Rand Water about R1.3bn, of which R880 million is older than 90 days, and R35.7m is owed to the Red Ants.
The office of the Midvaal mayor said the municipality was an interested and affected party in a contract between the Emfuleni Municipality and Rand Water with regards to the affected supply zone, however Midvaal was not directly contracted with Rand Water. “It is disheartening that our residents in Risiville are greatly affected due to failure by Emfuleni to honour their contractual obligations with Rand Water,” said Baloyi.
He added the municipality’s residents were suffering as the result of water reduction.
Midvaal Municipality added several meetings had been held with the Emfuleni Municipality, but to no avail.
“Therefore, a decision has been taken to withhold all payments. This decision will stand until Emfuleni Municipality addresses the matter with Rand Water,” the municipality said.
Midvaal said the municipality would work hard to find a lasting solution.
Gauteng Cogta spokesperson Castro Ngobese said the department will facilitate engagements between the Midvaal Municipality and the Emfuleni Municipality.
“At this stage it will be premature to engage on the matter. Such engagements will also shed some lights on the unfortunate decision by Midvaal.”
Meanwhile, Gauteng MEC for Human Settlements, Urban Planning and Cogta, Lebogang Maile, said in February a new team of administrators was appointed to resolve the issues of Emfuleni Municipality as the initial intervention did not produce the desired outcomes.
The administrators were given powers to focus on supply chain, finance and service delivery.
Maile said a R173m budget was approved for storm water and drainage system refurbishment, and R52m was approved for the rehabilitation and resealing of roads in Vanderbijlpark and Vereeniging, and patching potholes in townships.
He added that the Gauteng provincial government set aside R53m for waste collection.