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A National Water SOE Is Not the Solution

Dear Editor

Reports this week show that municipalities collectively owe R22.4 billion to water boards, an increase of R13.4 billion (or 151%) over the past five years. This alarming trend has left various water boards either facing imminent bankruptcy or being in great financial distress. Those facing imminent bankruptcy include Vaal Central Water, which supplies, among others, Mangaung Metropolitan Municipality; as well as Magalies Water, which supplies Mahikeng and Rustenburg Local Municipalities.

Should this happen, these boards will stop being able to produce potable water and that will risk the lives and livelihoods of Free State and North West residents. To avoid this, the Department of Water and Sanitation will have to step in and fund the water boards.

As a result, the DA will submit Parliamentary questions to determine how the massive accumulation of water board debt occurred in just five years, what actions are being taken to prevent water boards from going bankrupt, including those already in financial distress, and what accountability mechanisms are in place to ensure that responsible officials are held to account.

As our nation’s water boards face imminent collapse, legislation that further centralises and controls our water infrastructure is a recipe for disaster.

The DA’s opposition to the South African National Water Resources Infrastructure Agency SOC Limited Act that was signed into law this week, is well documented. This Act establishes a state-owned enterprise with full control over the funding, maintenance, operations, and oversight of all our nation’s water infrastructure. It also grants the Minister unchecked powers in appointing and removing Board members, thereby limiting Parliamentary oversight.

This will not solve the looming water crisis in South Africa. Our country needs to get back to basics in managing our water resources. We need to ensure that competent local governments play their part in earmarking resources for maintenance and investment, overseen by strong provincial governments, with the National Government providing grants to provinces and local governments where there is a need, and stepping in only as a last resort.

We call on government to start an urgent and structured engagement with all stakeholders, including the private sector, aimed at finding solutions to the country’s looming water crisis.

Regards

Stephen Moore MP
DA Deputy Spokesperson on Water and Sanitation

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