WUC has warned that government and councils unpaid water bills are severely affecting liquidity, maintenance and service delivery
BONGANI MALUNGA
The Water Utilities Corporation (WUC) has raised serious concern over escalating debt levels driven largely by delayed and non-payment of water bills, with government-related accounts emerging as the biggest contributor to the corporation’s financial strain.
WUC says total arrears stand at approximately P1.6 billion, with the national government and local councils accounting for P784 million of that amount.
PRESSURE ON LIQUIDITY POSITION
The corporation warns that the mounting debt is placing significant pressure on its liquidity position, weakening cash flow buffers and hampering its ability to sustain essential operations, including maintenance of water infrastructure and timely service delivery.
Appearing before the Parliamentary Standing Committee on Statutory Bodies and State Enterprises, WUC Chief Executive Officer Gaselemogwe Senai said the situation remains a major operational constraint.
SIGNIFICANT CONSTRAINT
“A significant constraint on the corporation’s liquidity and cash flow position arises from the delayed or non payment or settlement of bills particularly by the government customer category, it remains our largest customer base,” Senai stressed.
WUC cautioned that continued accumulation of unpaid bills could further compromise service reliability, delay infrastructure upgrades, and increase operational risks if not urgently addressed through improved payment discipline across public sector clients.