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UTILITY CRISIS

Government owes Johannesburg Water R636m in unpaid bills while 140 water pipes burst each day

Government owes Johannesburg Water R636m in unpaid bills while 140 water pipes burst each day
Residents carry water from a government water truck at Tsakane informal settlement in Johannesburg on 21 October 2022. (Photo: Gallo Images / OJ Koloti)

Joburg is cutting off water and electricity in poor areas and nursing homes, and enforcing outstanding payments at roadblocks while government departments owe hundreds of millions in unpaid water bills.

According to a report tabled at the city council, government departments and state-owned enterprises (SOEs) owed Johannesburg Water R636-million by the end of 2022.

The figure is likely to go up in 2023 as the city struggles with lower revenues.   

The chart shows that the Gauteng Department of Health owes the most, at R340-million, followed by the departments of housing and education. The passenger rail agency, Prasa, owed Johannesburg R72-million at the end of 2022, while Transnet owed R66-million.

 

The debts matter because Johannesburg Water, a utility run on private sector principles, has a R20-billion infrastructure backlog and is battling a series of water crises. 

Two-thirds of the city was hit by water cuts last month, marking a year since Daily Maverick reported on Johannesburg’s Day Zero.

As of 13 October 2023, at least 18 reservoirs were at critical levels, while 40 reservoirs were being “throttled” between 9pm and 4am to restore water levels. This leaves many areas short of water at night.

 

“The reason it [the debt] matters is that Joburg Water is suffering from very limited funds. Pipe replacements must be done. Joburg Water is only replacing 12km to 15km a year; the minimum should be 100km a year,” says Nicole van Dyk, the DA spokesperson for infrastructure in the city.

“The utility is also struggling immensely for parts, vehicles and contractors. Leaks often continue for days.”

Gauteng Premier Panyaza Lesufi acknowledged the debt. 

“The Gauteng provincial government has been pushing its departments and entities to honour their debt commitments. It’s unsustainable for one arm of government to owe another and be forced to resolve issues through the courts,” said Lesufi through his spokesperson, Sizwe Pamla. 

“We need to establish a debt management agency with the Department of Cogta [Cooperative Governance and Traditional Affairs] so we can manage this debt,” said Lesufi.

The charts below show the areas affected by the latest crisis sparked when a hailstorm knocked out a Rand Water system, impacting on the city’s supply, and bulk meter restrictions. 

Johannesburg Water chief Derrick Kgwale said the city’s water supply had been in crisis since late August, either from load shedding or storm impacts on the Rand Water system.

The cash-strapped city has begun stringent credit control on residents, stepping up traffic patrols, where outstanding utility bills are checked. In August, the Gauteng Division of the High Court in Johannesburg ordered the city to reconnect a nursing home. Toby Shapshak reported on the targeting of old-age homes here.

Driving on city streets is hazardous. Roads are dug up whenever a pipe bursts and are frequently not filled back in. Cars have driven into these holes as they are almost impossible to see at night, especially during load shedding.

“[Johannesburg Water] enforced operational performance standards of attending to a minimum of at least major bursts and three water-related jobs per team per day,” according to the latest report to the council.   

Johannesburg Water says residents must report these faults, but reinstatements often take weeks or months – or sometimes never get done. According to the city, there are roughly 4,190 pipe bursts every month, averaging about 140 a day.

Read more in Daily Maverick: Johannesburg Water touts supply improvements yet no word on end to crisis for parched residents

Community groups have signed numerous petitions across Johannesburg as water cuts become normalised.

“The system’s definitely in crisis and every day there seems to be a new crisis,” said Dr Ferrial Adam of Outa’s Water Community Action Network.

She questioned whether damaging hailstorms were the reason reservoirs were empty. 

“The system is highly vulnerable and the question must be asked: Have we gone beyond the tipping point?”

Johannesburg Water engineer Logan Munsamy said the 18 critically low reservoirs were at various levels, explaining that full recovery could take weeks. The city is “throttling” reservoirs (slowing supply to a trickle) – this is why many residents complain about low pressure, diminished supply and cuts at night.

“We cannot say when we will stop throttling,” said Munsamy, adding that “recovery is going in the right direction”.

By Wednesday, the South Hill Tower had recovered, said utility spokesperson Nombuso Shabalala. 

However, Risana, Tulisa Park, Steeledale, Linmeyer, South Hill, The Hill, Oakdene, Rosettenville and the Klipriviersberg Estate have had dry taps for more than a month. Residents complained to Water and Sanitation Minister Sizwe Mchunu about these outages earlier this month.

Daily Maverick requested comment on the debt from the Johannesburg mayor’s office, the MMC for Finance, Dada Morero, and the Gauteng Department of Health. None was forthcoming despite promises from spokespeople. DM

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Comments - Please in order to comment.

  • Denise Smit says:

    So another Departement of “Debt Management” must be created according to Lesufi. Like another commission. It is just absurd. Everybody must pay their bills. But the ANC/EFF has created this culture of non=payment for services. So Lesufi has not guts to give the simple solution. It would be anti-ANC/EFF culture. Where does Soweto fit in this picture? is it not part of the water provision system? Denise Smit

  • Another stunning success brought to SA by the ANC.

    But fear not 30 mill will vote for them next year.

    I am curious to know how the Ministers can sleep at night. Do they have no feelings, or accountability, towards their voters? Clearly not. It begs belief and yet the voters love them.

    Scary

  • Francois Smith says:

    This article just simply confirms the undeniable fact that the ANC and its cadres cannot manage. They cannot even manage excuses. The simple fact is that the ANC led JHB government has for years paid salaries with and stole the money for maintenance. It works until the system fails. It is always better to maintain an asset than to replace it with a new one. We know Ramaphosa will be surprised, but can we not ask him to explain why everything is worse under his administration now than it was when he started?

  • Trevor Pope says:

    This is the real cost of the ANC’s patronage network and cadre deployment.

  • Roy Sawers says:

    I wonder if these figures given by Jhb Water are accurate. I think a thorough investigation into their billing practices would be helpful.

  • Wayne Holt says:

    ANC = how to lose control of a country and then systematically destroy it

  • William Kelly says:

    Such fun! Muppet Lesufi cannot pass an opportunity to use tax payer money to create some cadre jobs. One cadre job = what, 10, 20 votes? Do the math.

  • Uwe Niederheitmann says:

    Well, the solution is simple. Clearly another Minister is needed, a Minister of Water Leaks to oversee the Minister of Water and Sanitation, to create a Committee for each Reservoir, and I am sure Ramaphosa will institute a Commission of Enquiry why government departments don’t pay their utility bills. So it will only take another R2 Billion to get no answer and no action in 5 years time. Aluta continua! Viva ANC Viva!

  • mike van wyk says:

    This report does not take into account MMT (Modern Monetary Theory). If it did, it would reflect that the state (State Treasury) is never indebted to itself. As the state can always afford to repay its debits using its domestic unit of exchange (ZAR). What this article highlights, is that while the state plays the numbers game with itself, ordinary citizens suffer. That is unforgivable!

  • George 007 says:

    I’m glad I live in Simon’s Town.

  • Fuad XXX says:

    Suffering cats! I struggled with this one but suddenly the solution come like a lightning bolt vote the DA in or is it too late, I wonder?

  • Errol Gunn says:

    Ah, another anc ‘success’ story. A once ‘world class African city’ before ’94, turned into shite by the corrupt incompetent incapable useless imbeciles of the anc! And comes the next SONA speech by squirrel, he’ll laud his government for the strides they’ve made in making SA a better country for all! Yeah right.

  • Penelope Meyer says:

    I live in Cape Town. We had a burst pipe last night, and have been without water this morning. But they worked through the night and the water is back on now, pressure just a bit low. The City also sent a water tanker to the area. Just saying.

  • rubstamp says:

    Water shortages seem to be nation wide, particularly in rural areas. I live in Louis Trichardt, Limpopo. Since beginning of November last year till July this year, we have had less that 20 hours of running water in total for the whole period. Water transport and selling has become a major business opportunity in the town. Residents don’t even bother to complain anymore, we all just accept it. We’ve all become frogs in rapidly heating water. DayZero is nigh in every possible service delivery sector, thanks to the inept bunch of poltroons who so wrongly imagine they are governing our country.

  • Matthew Quinton says:

    The ANC stealing from itself, oh how hilarious.

    Like rats, locked in a cage, beginning to eat each other.

    If you have enough grey matter to read this message, move to the Western Cape now.

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