Pretoria – A payment agreement has been reached between the O.R. Tambo District Municipality in the Eastern Cape and the Department of Water and Sanitation to settle outstanding debt totaling R87 million.
Water and Sanitation Minister Nomvula Mokonyane today met with Eastern Cape Premier Phumulo Masualle and OR Tambo Municipality Mayor Nomakhosazana Meth to resolve issues relating to the debt owed by the municipality to the Department of Water and Sanitation.
Officials from the municipality presented a council resolution for the consideration of the Minister and Premier, outlining proposals by the district on payment of the outstanding debt to avert further legal action by the department.
Minister Mokonyane said the parties were able to find each other.
“As a department, we have agreed with the municipality on a payment proposal relating to a debt totaling R87 million and will within the next two weeks conclude a memorandum of agreement with the municipality.
“We have also agreed with the municipality on reviving a Joint Task Team that will allow us to provide further support to the district with regards to their water and sanitation programme, as well ensuring that we avert a future debt situation similar to the one we have since resolved,” said Minister Mokonyane.
The memorandum of agreement will facilitate for a review of legal action currently awaiting execution on behalf of the department against the municipality.