Busfontein - Magalies Water has been predicted to go bankrupt by June this year, this is as municipalities are owing the water board
Maquassi Hills is among those municipalities that owes the water board millions of rands
Debt-collection measures are being implemented by the Magalies Water Board to avert expected bankruptcy by June this year due to escalating unpaid debts. The Department of Water and Sanitation Director-General Sean Phillips released a report highlighting municipal debt to water boards.
It identified two water boards likely to go bankrupt within the next 6 to 12 months due to outstanding municipal debt running into millions of rand. Magalies Water Board — which took over some duties of the discontinued Sedibeng Water Board in 2022 to supply some municipalities in the North West, Gauteng and Limpopo
Inheriting those duties included taking over their geographical areas, staff, assets and liabilities. However, the transfer to Magalies Water Board did not resolve the underlying debt problem that Sedibeng Water faced, said the report
"Magalies Water Board has already reached the point where their expenditure exceeds the available bank balance and will not be able to pay their operating costs and have stopped paying for their raw water. By paying only essential expenses (salaries, electricity, chemicals and so on), Magalies Water will be able to keep going until approximately June 2025, after which they will be bankrupt and will not be able to deliver any water" - Department of Water and Sanitation Director-General Sean Phillips
Powered by: Blogger
Updated: 2 June 2025 Monday
#WolmaransstadLinkNews
