The Emfuleni municipal council has officially approved the creation of a new water and sanitation company during a special council meeting at the mayor’s parlour on Thursday.
The spokesperson for Emfuleni, Makhosonke Sangweni, announced the formation of the special purpose vehicle (SPV) as an independent company in partnership with Rand Water Services.
Emfuleni expects the firm to assume full responsibility for water and sanitation services for the next 30 years.
“This new company will provide water and sanitation services to the people of Emfuleni, assuming full responsibility for all service systems related to this function, to ensure basic and sustainable service delivery to residents and all stakeholders,” said Sangweni.
Persistent water shortages
Emfuleni, which has faced ongoing financial and operational challenges in delivering basic services, expects this move to bring relief.
The municipality has long been beset by persistent sewer overflows and water shortages. In the financial years 2022/2023 and 2021/2022, it received qualified audit opinions.
He also explained that the SPV will function as an external service provider and is part of a long-term plan to professionalise and improve the management of water services in the area.
According to him, the approval follows last month’s support from the national government, which included Minister of Water and Sanitation Pemmy Majodina and Finance Minister Enoch Godongwana.
Sangweni said these came with specific conditions under Section 54(2)(a), (b), and (c) of the Public Finance Management Act.
Memorandum of agreement
Emfuleni and Rand Water are now in the final stages of preparing for the official launch of the SPV.
“Following the halt in the SPV launch late last year, the municipality is confident that the work undertaken over the past few months is sufficient to secure final executive approval, paving the way for improved water service delivery and sustainable infrastructure management.
“The Emfuleni local municipality signed a memorandum of agreement with Rand Water to conduct due diligence on the Emfuleni water and sanitation unit, Metsi-a-Lekoa, in September 2023,” said Sangweni.
He said the municipality believes that the capacity in water services management and delivery will be ultimately enhanced with the professionalising and corporatising of water services.
