The Nama Khoi coalition municipality has made significant strides in addressing debt inherited from the former ANC-run local government, as it tabled a debt relief programme with the Vaal Central Water Board in Council yesterday. This sees almost R170 million worth of debt owed by the municipality, cleared immediately.
Since the Nama Khoi coalition took over the municipality in 2021, they have been fighting against water infrastructure challenges stemming largely from a lack of pre-2021 maintenance. This was aggravated by financial constraints imposed by legacy water board debt.
Successful negotiations with Vaal Central Water have generated positive results as the coalition municipality now works towards a debt free future. In the long run, this will free up more money for service delivery, particularly towards improving water supply.
According to the agreement, Vaal Central Water will immediately write-off debt owed by Nama Khoi to the value of R168 798 715. Nama Khoi will also write-off debt and interest owed by Vaal Central. This result is a significant victory for the municipality.
Nama Khoi municipality’s outstanding debt of R111 709 437, will be written off over 36 months in terms of the conditions of the water incentive scheme. Nama Khoi will pay the outstanding amount of R14 174 945 to Vaal Central over 36 months, as per the payment plan.
Nama Khoi has already done well in the ongoing debt-relief programme with Eskom, achieving an 86% compliance rate in relation to the programme’s stringent conditions. As a result, the municipality achieved a debt write-off of just under R70 million in February this year.
The Nama Khoi coalition is just as committed to complying with its agreement with Vaal Central Water, as it has with Eskom. There is no quick fix to eradicating debt but the coalition continues to establish Nama Khoi municipality as an example of good governance. The progress being made under the coalition must therefore be protected by keeping the ANC and PA out of Nama Khoi.