CAPE TOWN – Cooperative Governance Minister Velenkosini Hlabisa says non-payment by municipalities to water utilities is a vicious cycle.

Government departments, national and provincial, now owe municipalities more than R29 billion in unpaid bills.

Responding to questions from the National Assembly on Thursday, Hlabisa said that unless they are destitute, consumers and businesses must pay for the services they receive from local authorities.

He added that municipalities cannot be expected to pay Eskom and water utilities if the ministries themselves do not pay.

Hlabisa said municipalities must complete their indigent registers to determine who can pay for their services.

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He said the water department is also working with Treasury to determine a mechanism for canceling the historic debt.

Water loss in the system increase the inability of municipalities to pay their debt.

“There will be more emphasis on improving infrastructure and prioritizing repairs and maintenance. Several water authorities have been granted permission to allocate up to 10% of their grant funds municipal infrastructure to repairs and renovation,” Hlabisa said.

Hlabisa said he had written to all departments that owe water boards to clear their debts by the end of December, failing which the Treasury will be asked to redirect their allocation money to the municipalities owed.