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Rand Water Implements Water Restrictions on Lesedi Municipality Over Debt

Residents of Lesedi Local Municipality are currently facing interrupted water supply as Rand Water implemented restrictions to reduce bulk water supply by 20%, citing an unpaid debt exceeding R120 million.

In a formal notice dated March 27, Rand Water informed Lesedi Municipal Manager Mr. Sibusiso Dlamini of their intention to implement the restrictions from April 1 due to the municipality’s failure to address its growing financial obligations.

“The Municipality is currently indebted to Rand Water in the amount of R120,801,115.57 inclusive of interest,” stated Rand Water Group Chief Executive Mr. S. Mosai in the notice. “This amount is excessively high and unacceptable as it negatively impacts Rand Water’s financial and operational position.”

The water utility explained that the decision comes after multiple attempts to resolve the matter through proper channels.

In October 2023, Rand Water declared an intergovernmental dispute with Lesedi Municipality and sought intervention from both the Cooperative Governance and Traditional Affairs department (COGTA) and National Treasury. However, according to the notice, these efforts yielded no response from either party.

Despite discussions regarding a Debt Settlement Agreement (DSA), Rand Water claims the municipality failed to provide clarity on how it plans to liquidate the overdue debt within the proposed 36-month period, forcing the utility to reinstate water restriction measures that had previously been suspended during negotiations.

The restrictions, scheduled to begin April 1, could potentially interrupt water supply to end-users for periods exceeding 24 hours.

Rand Water has advised the municipality to notify residents about the impending restrictions and to ensure alternative access to water services as required by Regulation 4 of the Water Services Act.

Local residents have expressed concern about the potential impact of the restrictions. A local community activist warned that water interruptions would severely affect vulnerable residents, particularly in townships and informal settlements.

“People need water for basic survival. Any water shutdowns will hit poor households the hardest,” Mokoena said. “The municipality needs to be transparent about what led to this situation and what measures will be put in place to protect basic water access.”

Copies of the notice have been sent to the Minister of Water and Sanitation, Gauteng Province, the MEC of Cooperative Governance in Gauteng, and the National Treasury as required by section 4(5) of the Water Services Act.

Rand Water supplies bulk water to municipalities across Gauteng and parts of neighboring provinces. The utility has previously implemented similar restrictions on other municipalities with significant payment arrears, including Emfuleni Local Municipality in 2021.

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