Amid escalating debt, water utility Rand Water has reduced water supply to the Lesedi local municipality, in Gauteng, by 20%.
This is owing to the municipality’s failure to honour several scheduled payments, despite months of engagement between the two parties.
Rand Water on Friday said in a statement that the municipality owes it R27.71-million.
“The decision to reduce the bulk potable water supply by 20% was necessary to prevent further escalation of the municipality’s debt that has been accumulating owing to its failure to fulfil the signed Bulk Water Supply Contract,” the water utility explained.
While Rand Water had on many occasions held debt settlement agreement (DSA) meetings, the municipality failed to make payments towards the outstanding debt.
