Bloem Water has confirmed it has received a payment of R20 million from the Mangaung Metro Municipality in the Free State in part payment of the R270 million in debt owed by the metro.
The water entity imposed supply restrictions on Mangaung due to non-payment. The embattled municipality failed to keep up with their monthly instalment as agreed in a December 2020 settlement.
Bloem Water Executive Operations Manager – Maruping Rapudungoane says the municipality stopped paying after June this year. Rapudongoane says the water entity was forced to act.
“We then had to take a decision as management to say we would need to then reduce flow given to the metro. Because we are unable to also pay our debtors. For electricity, chemicals and subsequently is going to affect salaries towards employees. And we want to avoid such things as soon as we can. And hence we took a decision to restrict water by 30 percent. I need to acknowledge that yes the Metro has made a payment of R20 million yesterday. However that is not enough with regards to what is in areas which R270 million,” says Rapudongoane.
Mangaung Metro Municipality fails to honour payment arrangement with Bloem Water