Parliament Slams Joburg Mayor Over R4bn Missing Water Funds

CAPE TOWN, 20 Sept 19 – The national Portfolio Committee on Water and Sanitation has issued a scathing rebuke of the City of Johannesburg's leadership, accusing Executive Mayor of a "lackadaisical attitude" in handling the metro's severe water crisis and failing to account for a staggering R4 billion allegedly diverted from its water utility.

The stern condemnation followed an emergency meeting on Friday between the committee, the City of Johannesburg, Johannesburg Water, Rand Water, and the Department of Water and Sanitation to address the escalating failures that have left large parts of the city without reliable water supply.
READ: Joburg Water Crisis: R27 Billion Backlog Revealed as Cause

A Leadership Vacuum and Missing Billions

Committee Chairperson Mr. Leon Basson expressed deep frustration, stating the city's leadership appeared unsure of the necessary interventions and could not provide "tangible timelines" for critical funding.

The most explosive revelation was the committee's claim that the municipality could not account for R4 billion that should have been invested in water reticulation infrastructure. “ It is unacceptable that Joburg Water has an infrastructure upgrading and renewal [need] of approximately R26.61 billion, which is likely to increase due to inadequate funding in the coming years,” Basson said.

The Contractor Payment Crisis

The committee uncovered what it called an "unacceptable" practice that directly contributes to the crisis. Basson revealed that the municipality enters into contracts for critical infrastructure projects but then arbitrarily decides "if and when they can pay those contractors for rendered services."

“This is the reason many contractors abandon sites without completing critical work that will ensure access to water for residents of the city,” Basson stated, drawing a direct line between non-payment and the ongoing water delivery failures.

Nearly Half of All Water Lost

Further compounding the problem is Johannesburg Water's catastrophically high non-revenue water rate of 44.8%—meaning nearly half of all water is lost through leaks or theft before it can be billed. This cripples the entity's ability to generate revenue for new projects and maintenance.
READ: 33% Water Loss: Johannesburg Losing Third of Supply Through Leaks

Path Forward: Forensic Investigation and Ring-Fencing

In a decisive move, the committee resolved to:

1. Urgently summon National Treasury to explain the Trading Services Reforms and their implementation schedule.
2. Invite the Office of the Auditor-General to conduct a forensic analysis into the alleged R4 billion redirected from Johannesburg Water.

The committee was adamant that funding for Johannesburg Water must be ring-fenced to ensure money is available for infrastructure maintenance, ending the practice of diverting water revenue to other municipal expenses.

While the committee acknowledged the City's interim measure of investing in water trucks to serve affected communities—a move aimed at curbing exploitative "water mafias"—it emphasized that without adequate and secure funding, even the most credible turnaround plan is doomed to fail.

READ: Johannesburg Water's 32.5 Billion Rand Rescue Plan

The summons to National Treasury signals an unprecedented level of national intervention in a municipal crisis, highlighting the severity of Johannesburg's water failures and the lack of confidence in the city's current leadership to resolve them.