Bloem Water's Caesarine Mogorosi says the current financial status at the institution is unsustainable. She says this is due to the non-payment of accounts by municipalities which owes millions of rands. 

In June the institution, which supplies thousands of residents with water, if not millions, announced that three municipalities, which include the Mangaung, Mantsopa, and Kopanong municipalities, have not been keeping up with their accounts. Mogorosi says these three municipalities owe the water institution a combined amount of more than R1 billion, with the embattled Mangaung’s account alone amounting to almost a billion.

Kopanong Local Municipality, which includes Trompsburg, in June confirmed to OFM News that it owed Bloem Water over R300 million. But this municipality blamed the coronavirus pandemic for hindering its developed revenue collection strategies aimed at paying its debt to Bloem Water. 

The municipal spokesperson, Solomzi Phama, at that time said “many factors are being attributed to the failure to pay the debt and those include the low revenue collection from communities, which he says has had a negative impact on the initial agreement”.

Meanwhile, in response to the Bloem Water’s statement, Mangaung Metro says it is currently in talks with the water entity with the intention of resolving matters relating to the payment plan. The municipal spokesperson, Qondile Khedama, explains that the metro will continue to service the undisputed account.

“However, we take a dim view to a blanket communique that seems to purport the City as irresponsive in honouring its creditors. Our recent payments made between July and August amount to R130 million. These amounts demonstrate commitment on the side of the City,” Khedama adds.

Mogorosi from Bloem Water continued to say that the endless Inter-Governmental Relations (IGR) processes followed with municipalities and other stakeholders did not yield any positive outcomes and have resulted in the entity being unable to carry out its normal operations or even meet its obligations as required. “It should be noted that the current outstanding debt by the three Municipalities stands at R1,492 495 billion as at July 2020, Mangaung’s alone stand at R1,093 billion," she adds.

 OFM News