The North Gauteng High Court in Pretoria on Tuesday granted the City of Tshwane permission to attach the bank account of Madibeng Local Municipality, which owes more than R250 million in unpaid bills.
The City of Tshwane filed a court application to attach Madibeng Local Municipalitys bank account after the municipality failed to honour payment terms for its multimillion-rand bulk water supply debt.
Madibeng Local Municipality, which is in the North-West Province, did not oppose the City of Tshwanes application.
The attachment of Madibeng Local Municipality’s bank account will enable the City to recoup the funds that we are owed, and this should assist the City to pay its creditors, like Rand Water, from which the City gets its bulk water supply.
Madibeng Local Municipality now owes the City R258 million for its unpaid bulk water account.
In August 2021, the two municipalities entered into a payment arrangement in terms in which Madibeng Local Municipality would settle its account in installments over a specific payment period, but it failed to honour its commitment.
At the time the agreement was entered into, Madibeng Local Municipality’s debt stood at R243 million.
The City of Tshwane was then forced to restrict the municipalitys water by 50%.
The Citys court application was aimed at enforcing the settlement of Madibeng Local Municipality’s debt by attaching its bank account.
The City, which insisted it was taking a zero-tolerance approach toward outstanding debt, said Madibeng municipality has continuously failed to attend to its payment obligations.
Commenting on the court ruling, City of Tshwane Mayor Randall Williams said he “welcomes decision by North Gauteng High Court that allows the city permission to attach Madibeng Local Municipalitys bank account to recoup R258 million owed to the City”.
