Staff Reporter
At least 76 percent of the water purchased by Matjhabeng Local Municipality from Sedibeng Water is lost due to ageing infrastructure and theft.
This is contained in the latest report on local government audit outcomes for 2019-2020 released by Auditor General (AG) Tsakani Maluleke on Wednesday.
“The municipality lost R462.84 million (76 percent) of the water purchased from Sedibeng Water due to leakages, burst pipes, line losses, tampering and theft,” read part of the report.
According to the report, the water lost added to the significant amounts payable to the water boards but could not be billed to consumers to earn revenue.
This, it said, contributed to the vicious cycle of poor cash flows, leading to further delays in the municipality’s ability to render quality services to the community.
“The municipality owed Eskom and Sedibeng Water R3.34 billion and R3.68 billion, respectively,” said the AG’s report.
Overall, municipalities in the province incurred deficits of over R2 billion due to overspending on their approved budgets.
The report said poor budgeting practices and overspending hamper service delivery as municipalities are unable to build up reserves that would help them continue providing as well as maintaining or replacing old infrastructure.
The AG found a major irregularity at Matjhabeng relating to the construction of the Nyakallong storm-water system.
A contract of over R13.7 million was awarded in April 2017 and the project was to be completed by May 2018.
However, the project remains incomplete and the contractor has since abandoned the project site.
The work done does not meet the required quality and the municipality has spent an estimated R7.2 million.
The amount went towards the construction of an attenuation dam to contain and manage storm water but the dam has not been constructed.
The matter has now been referred to a public body for investigation.