North West MEC for Finance, Kenetswe Mosenogi, has called for constructive engagement between Midvaal Water Company and the City of Matlosana Local Municipality to resolve outstanding disputes relating to historical debt, service charges and corporate governance arrangements.
The MEC expressed concern over public statements suggesting possible interruptions to water supply, cautioning that such statements could create unnecessary anxiety among residents while efforts to resolve the dispute are underway.
“The provision of water is an essential service, and the interests of residents must remain our foremost consideration. We urge all parties to exercise restraint and allow the ongoing reconciliation and engagement processes to proceed in a constructive manner,” said MEC Mosenogi.
The Provincial Treasury-led intervention, working alongside the municipality, has been examining historical billing practices and financial obligations involving the water utility over the past six months. A reconciliation of statements covering a ten-year period identified approximately R1.5-billion in historical forecast-related charges as disputed, prompting calls for the amount to be written off subject to legal and accounting resolution.
Despite the ongoing disagreements, the municipality has continued to meet financial obligations by paying approximately R270-million during the 2025/26 financial year and a further R85-million during the 2026/27 municipal financial year.
“These payments demonstrate that the municipality has continued to meet financial obligations while seeking clarity and accountability regarding historical charges. The resolution of disputed amounts must be informed by accurate records, proper reconciliation and the applicable legal and financial frameworks,” said MEC Mosenogi.
Additional concerns raised by the intervention include a R21.9-million research levy, monthly capital recovery charges of R5.7-million, and R825.8-million in interest charges calculated from 2017 to 2026. Governance issues were also highlighted, noting that four board positions allocated to the municipality under the utility's Memorandum of Incorporation have remained vacant since 2016.
While pending proceedings continue before the North West High Court, provincial officials are extending the reconciliation process to examine historical statements dating back to 2005.
“Our priority is to secure a sustainable resolution that protects residents, promotes financial accountability and strengthens governance. Public disagreements should not distract us from the responsibility of maintaining essential services and resolve outstanding matters through established institutional processes,” concluded MEC Mosenogi.
