By Simon Nare
The Cabinet has approved the establishment of an inter-ministerial committee (IMC) to come up with a municipal turnaround plan with special focus on municipal debt to water boards that are threatening the provision of water to municipalities.
Minister in The Presidency, Khumbudzo Ntshavheni, told reporters on Friday that the executive had been briefed on the growing and unsustainable municipal debt to water boards.
These debts were now threatening the sustainability of the Vaal Central Water Board, which was owed R9.9 billion, and Magalies Water, which was owed R930 million by end of July.
The situation was so dire that the two boards could possibly be declared bankrupt.
“Debts owed to water boards have a potential to threaten provision of water even to municipalities that are paying their water debts. Cabinet approved that an IMC be established to address municipal turnaround,” Ntshavheni said following a Cabinet meeting.
“The
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