The issue of debt owed by municipalities to the water boards has come to a head, with one municipality in KwaZulu-Natal facing water restrictions due to a R600 million debt.

The uMngeni-uThukela Water (UUW) board and the King Cetshwayo District Municipality (KCDM) in northern KZN are locked in a bitter payment dispute.

UMngeni-uThukela Water claims it is owed R600m by the municipality and it therefore decided to restrict water supply to the area.

In response, the municipality disputes the claimed debt, saying it is terminating its contract for bulk water supply with the water board. It argues that the restriction has caused low water pressure, resulting in some communities in rural areas not receiving water.

The dispute comes as the Minister of Water and Sanitation, Pemmy Majodina, revealed that her department has approached the Cabinet to intervene in 100 municipalities across the country struggling with water delivery.

She disclosed that many municipalities are failing to pay water boards, and their equitable share could be redirected to settle these debts, as the current situation could lead to a collapse of water boards.

Recent reports indicate that as of June 2024, municipal debt to waterboards across the country stood at R22.36 billion, with an average increase of 151% between 2019 and 2024.

The South African Local Government Association (Salga) in KwaZulu-Natal has urged municipalities to settle their debts with water boards.

King Cetshwayo Municipality said that on March 13, its council decided to terminate its contract with the UUW following the water board's unilateral decision to restrict the district’s water supply, causing widespread water cuts across the entire district.

“At a special council meeting held on 13 March 2025, the municipality approved the termination of the Bulk Services Agreement (BSA), effective 31March 2025. KCDM will take over and in-source the provision of bulk water services at all its municipal-owned water plants with immediate effect, and UUW has been requested to conclude all its operational activities and exit the water plants,” the municipality said.

“This decision came after the unreasonable manner in which UUW commenced water restrictions on March 12, 2025, while the matter was under inter-governmental mediation by the Department of Water and Sanitation to find common ground on the debt dispute.

“Despite ongoing intergovernmental dispute resolution efforts, uMngeni-uThukela Water chose to cut off the water supply. Furthermore, King Cetshwayo has paid uMngeni-uThukela Water in full the total amount it believes to be owed while awaiting mediation on the remaining disputed amount," it said.

The municipality said it will wait for the mediator’s recommendations to resolve the matter.

UMngeni-uThukela Water said it was justified in reducing the water pressure, adding that the municipality has not paid its debt for almost two years.

“We decided to reduce the amount of bulk water supplied to the King Cetshwayo District Municipality due to a R600m debt owed by the municipality to the water board.

The last payment received by uMngeni-uThukela Water from the King Cetshwayo District was over two years ago, in January 2023.”

It said instead of repaying the out-standing debt, and despite an intervention by the Department of Water and Sanitation to mediate the debt impasse, the municipality opted to issue uMngeni-uThukela Water with an intention to terminate the bulk water supply agreement.

“As a last resort, uMngeni-uThukelaWater communicated its intention toreduce the daily water volumes supplied to the King Cetshwayo District Municipality from 46 megalitres to 36 megalitres (46 million litres to 36 million litres) effective from March 12, 2025.This reduction will remain in place until a payment plan for the outstanding debt is reached,” it stated.

THE MERCURY