Dear Editor
The Democratic Alliance (DA) acknowledges the collaborative efforts of the Government of National Unity, led by the Parliamentary Oversight Committee on Water and Sanitation, to address the looming bankruptcy crisis faced by the Vaal Central and Magalies Water Boards. Yesterday’s joint meeting with the Department of Water and Sanitation (DWS), National Treasury (NT), the Department of Cooperative Governance and Traditional Affairs (COGTA), and the South African Local Government Association (SALGA) marks a critical step in finding solutions to this urgent problem.
At the heart of the proposals is National Treasury’s decisive intervention: municipalities in arrears with water boards must now pay their current accounts in full and on time to receive their Local Government Equitable Share (LGES) allocations. Furthermore, a mechanism to write off some historic municipal debt has been proposed, contingent on consistent future payments. These measures, supported by DWS and NT, show promise in restoring the financial stability of water boards while addressing the systemic collapse of municipal financial management.
The DA notes the leadership shown by Minister Pemmy Majodina, Deputy Minister Sello Seitlholo, Director-General Sean Phillips, and National Treasury in crafting solutions to this crisis. This collaboration underscores the importance of united governance in tackling systemic challenges.
The proposed framework ensures municipalities can access debt relief only by adhering to basic financial discipline, such as settling current accounts. This approach could not only avert the bankruptcy of Vaal Central and Magalies Water Boards but also safeguard water services for millions of South Africans in the Free State, North West, and Northern Cape.
However, the DA is alarmed by SALGA’s refusal to confront the underlying issue: municipal mismanagement. Rather than acknowledging the Auditor-General’s findings, which repeatedly cite failures in financial reporting and accountability, SALGA blamed the funding model and called for additional national resources. This stance ignores the evidence that municipalities are failing to prioritise payments for core services like water, electricity, and pension funds, which has exacerbated the water sector’s crisis.
The DA reminds SALGA that a sustainable water sector requires sound municipal governance. Municipalities must stop shifting blame and focus on tightening budgets to meet their constitutional mandate to deliver basic services. Denial and deflection only compound the problem.
We urge municipal leaders and managers to urgently prioritise payments to their water boards. The financial collapse of Vaal Central and Magalies Water Boards would devastate water provision, with ripple effects on national water infrastructure and municipal sustainability.
In particular, we call on these municipalities to:
- Immediately pay current accounts in full to prevent further deterioration.
- Honour all payment agreements made with water boards.
- Restructure budgets to prioritise water services as a critical function.
While we remain cautiously optimistic about the steps taken by NT, DWS, and COGTA, it is essential that these solutions are implemented with urgency and accountability. Municipalities that continue to undermine service delivery through financial mismanagement must be held accountable, including through the withholding of their LGES allocations where necessary.
The DA will continue to monitor developments closely and advocate for measures that ensure financial sustainability in the water sector. The collapse of water boards is not inevitable, but it requires decisive leadership and collaboration across all levels of government to prevent it.
Regards
Stephen Moore MP
DA Deputy Spokesperson on Water & Sanitation