Rand Water has attached Emfuleni municipality’s bank accounts over a R1.7bn debt. The move follows a demand by the power utility for R448m last week.

The municipality managed to raise only R200m, prompting the attachment and leaving it unable to access funds to sustain basic services. Rand Water has attached and released the municipality’s bank account on numerous occasions due to its debt and many defaults.

“We are owed more than R1.7bn; despite our efforts, they have consistently failed to meet their obligations,” said Rand Water spokesperson Makenosi Maroo. “We believe this action will encourage (it) to come to the table.”

A letter was sent to them on 31 December, and another on 30 January, warning them about the rising interest on their debt, she added. “Then we were forced to attach their account after multiple agreements were not honoured.”

The water utility has chosen not to disconnect the municipality’s water supply. It’s still able to pay salaries, Eskom bills, and service providers.

In August, Emfuleni and Rand Water reached an agreement after its bank accounts were attached by Rand Water to pay a R1.7bn debt.

A special-purpose vehicle, a partnership with Rand Water, was approved by the council. The vehicle was intended to provide water and sanitation services to residents, assuming full responsibility for all service systems related to these functions.

The settlement was facilitated through the intergovernmental relations forum; it was alleged that this settlement had uplifted Emfuleni’s bank accounts.

“The attachment of Emfuleni municipality’s bank accounts by Rand Water over a R1.8bn debt is a clear sign of a municipality in crisis,” said Emfuleni DA mayoral candidate Kingsol Chabalala.

“This is the result of years of failed leadership, financial mismanagement, and a complete breakdown in accountability. Emfuleni deserves a government that puts residents first, restores dignity, and fixes what has been broken.”

Meanwhile, Emfuleni DA Cllr Gerda Senekal said the situation at Emfuleni has reached a breaking point. “This crisis follows the approval of an unfunded budget and therefore the illegal adjustment of the budget in terms of the MFMA (Municipal Finance Management Act).

“Even more concerning is the contradiction around the so-called partnership with Rand Water. A solution was promised, yet today we see aggressive legal action instead.”

Emfuleni spokesperson Makhosonke Sangweni insisted the organisation is dedicated to resolving long-term issues and improving its operations.

OFM News/Zenande Mpame sm

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