Water utility Rand Water has warned of a destabilising financial position as several municipalities fail to honour their bulk water purchase agreements and debt settlement arrangements with Rand Water, leading to escalating debts that pose a direct threat to the utility’s medium- and long-term sustainability. Rand Water, which operates without any allocation from the national fiscus, relying solely on funds collected from its mostly municipal customers, is owed a cumulative overdue amount of more than R3-billion by municipalities.
