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Johannesburg Water debt crisis deepens: government entities now owe R636 million

Johannesburg Water is facing a deepening financial crisis as government debt for unpaid water bills soars to R636 million, raising concerns about service delivery and fiscal responsibility.

By Gift Sebiloane

Johannesburg, South Africa — the financial woes of Johannesburg Water continue are set to mount as new data reveals that government departments and state-owned enterprises (SOEs) now owe a staggering R636 million in unpaid water bills.

This represents a significant increase from the R403 million reported earlier this year, further highlighting the growing crisis.

The alarming figure was revealed in a recent report tabled at the city council, painting a grim picture of the utility’s financial health. The escalating debt has serious implications for Johannesburg Water’s ability to maintain critical infrastructure and provide reliable services to residents.

“This is a deeply concerning trend,” City of Joburg Councillor John Smith said in an interview with SABC News, in response to the latest shocking figures. “The government’s failure to pay its water bills is not only irresponsible but also jeopardises the well-being of our residents.”

The Gauteng Department of Health is the biggest defaulter, with an outstanding balance of R340 million. Other major debtors include the departments of housing and education, as well as the passenger rail agency, Prasa (R72 million), and Transnet (R66 million).

The mounting debt comes at a time when Johannesburg Water is grappling with a R20-billion infrastructure backlog and a series of water crises, including widespread water cuts that affected two-thirds of the city last month.

Experts warn that the situation could deteriorate further if decisive action is not taken. “The government needs to take responsibility and settle its debts,” urged Professor David Maseko, speaking to eNCA. “Failure to do so will have dire consequences for Johannesburg’s water security.”

Johannesburg Water maintains that it is actively pursuing all outstanding debts, but critics argue that more needs to be done to hold government departments accountable. With the city already struggling with lower revenues, the escalating debt crisis threatens to cripple Johannesburg Water’s ability to deliver essential services.

Furthermore, the situation raises serious questions about the government’s commitment to fiscal responsibility and its impact on service delivery in Johannesburg.

The coming weeks will be crucial as residents and civil society groups demand greater transparency and accountability from both Johannesburg Water and the indebted government entities.

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