The municipal spokesperson, Qondile Khedama, says an agreement was brokered between the two parties on Wednesday night.

He says one aspect of the agreement includes an assurance by BloemWater that Mangaung won’t be subject to any water cuts. He says this after the new acting mayor, Lebohonag Masoetsa, and Bloem Water board chairperson Tefetso Bernard Phitsane, as well as the representative of the provincial government met to discuss the impasse between the two.

Khedama adds that amongst other resolutions taken at this meeting is that the payment to the water board will now be strictly be dealt with administratively.

These two entities locked horns in September 2019 at the Free State High Court after the water board reduced water supply to 30% to residents for four days.

This after Bloem Water accused the metro of failing to honour its debt of at least R449 million following numerous warnings by the board following court action between the two in July 2019.

On Wednesday the water board reiterated calls that it was on the brink of collapse due to non-payment by some municipalities.

It said three municipalities owe it a combined amount of more than R1 billion, with the embattled Mangaung’s account alone amounting to almost a billion.

Bloem Water said 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 said: “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.” 

However, the municipality said its recent payments made between July and August amount to R130 million.

OFM News