The Democratic Alliance (DA) has called for policy changes to bring about change to the country's current Broad-based Black Economic Empowerment (B-BBEE) policies of the ANC.
On Monday, the party slammed the current policies, which it said only benefitted a few politically-connected individuals.
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From left is Minister of Water an Sanitation, Pemmy Majodina and Mangaung Municipality Mayor Gregory Nthatisi
From left is Minister of Water an Sanitation, Pemmy Majodina and Mangaung Municipality Mayor Gregory Nthatisi
Abigail Visagie
Mangaung Metropolitan Municipality has fully paid its R921 million debt to Vaal Central Water and no longer owes third parties such as SARS.
This comes after Minister of Water and Sanitation, Pemmy Majodina, lauded the Mangaung Metropolitan Municipality for the strides it has made in improving water service delivery and settling its water debt, calling the progress a positive step towards restoring public confidence in local governance.
Tabling her departmental budget speech last week in Parliament, Majodina said regular meetings with Executive Mayor Gregory Nthatisi, MEC for Cogta Saki Mokoena and Premier Maqueen Letsoha-Mathae, as well as the Water Board, are beginning to produce positive changes.
She said the problem of water debt, which is about R24 billion, is detrimental to water security in the country as well as the reliability of services.
“As a result of our engagements with provincial and local government, we are beginning to see positive changes. Today, Mangaung, Johannesburg and Tshwane no longer owe water boards. Sadly, many municipalities are still failing to honour their debts. As a result of these debts, 18 municipalities will have their quarterly equitable share allocation withheld by the National Treasury this month. The allocation will be paid to the municipalities in tranches, depending on their paying their current invoices from the water boards,” said Majodina.
Last year, the metro was reported to owe the water board about R921 million.
This comes after Minister of Finance, Enoch Godongwan, last month warned of his intentions to withhold 39 municipalities' July 2025 tranche of local government equitable share and conditional grants for their persistent failure to pay third parties.
This includes three municipalities in the Free State, Kopanong, Matjhabeng, and Nala Local Municipality, which still owe Vaal Central.
According to Godongwana, this will further include municipalities that will fail to submit the evidence that SARS, AGSA, pension funds, and other relevant statutory third parties have been paid fully, “the national treasury will approach Parliament to endorse that the national treasury stop the transfer of all the LGES due to the municipality over the remainder of the 2025/26 municipal financial year for the municipality’s persistent failure.”
