A special purpose vehicle (SPV), a partnership with Rand Water, was approved by the council on Tuesday, 1 July, during a special council meeting. It was intended to provide water and sanitation services to the people of Emfuleni, assuming full responsibility for all service systems related to these functions. 

The settlement was facilitated through the Intergovernmental Relations Forum; it is alleged that this settlement has uplifted Emfuleni’s bank accounts. “This marks a significant step towards stabilising the municipality’s financial position and ensuring the continued provision of water and sanitation services to our communities,” said Radebe.

The key terms of the agreement include an initial payment of R660 million, which has been made to Rand Water. There will be further engagement with the water utility. 

“The municipality views this settlement as a pivotal milestone in the municipality’s broader efforts to address infrastructure challenges and improve service delivery,” he said. The initial payment of R660 million was made to Rand Water on Thursday, 31 July, with further talks set for September to finalise a sustainable payment plan.

Rand Water seized the municipality’s bank accounts in June due to a debt of R1.7 billion. This is the second time in a year that Emfuleni's bank accounts have been seized; in September last year, Eskom had four of its bank accounts seized.

“Emfuleni and Rand Water have reached an agreement that might solve this municipality’s financial crisis,” said FF Plus Cllr Gerda Senekal. This ensures that water and sanitation services will continue without interruption.

A new SPV will be established to fast-track the repairs to Emfuleni’s water and sewer infrastructure, which might also improve service delivery to residents.”

The municipality further extended its gratitude to Gauteng Cogta MEC Jacob Mamabolo for ensuring a constructive and solution-driven engagement between the parties.

OFM News/Zenande Mpame mvh