The enormous R10 billion debt that five Free State municipalities owe bulk water supplier Vaal Central Water is threatening water security in the province.
The water utility recently reported its mounting debt to the Free State Legislatures Portfolio Committee on Cooperative Governance, saying it would cause cashflow problems.
Some municipalities have already declared that they are unable to pay their debt.
Committee chairperson Armand Cloete says this is a classic case of mismanagement.
Ultimately, it's an interstate debt crisis we are experiencing in the Free State currently. Why do I say that? Well, the state is owing itself money. A municipality owes a water board such as Vaal Central Water-these are huge amounts, and it affects residents. Residents are buying water or they are paying for water but when the debt levels are growing and Vaal Central decides to stop the water, it affects those residents; and that's a problem we have to attend to quite quickly.
