The Democratic Alliance in Johannesburg is demanding that the Johannesburg Water board be dissolved. This was following revelations of wasteful expenditure linked to a tender scandal.
David Foley, DA Johannesburg Shadow MMC for Group Corporate and Shared Serviced, said it was revealed that the utility appointed three contractors to supply water tankers in times of crisis. Two of these service provider, Nutrinox and Buitpro, were awarded at a total value of R263-million.
Contractors did not meet tender requirements
The DA alleges that the two companies awarded the contracts did not meet tender requirements. There appears to be middlemen who rent tankers from other businesses instead of owning them.
“We have written a letter to the MMC of EISD and MMC Group Corporate Shared Services to ask them to investigate the irregularities around this tender appointment,” he said.
Foley said this is one of the most significant cases of financial mismanagement in recent years.
He explained that the average cost of purchasing a water tanker is estimated at R1.5-million. The R263-million could have been used to buy at least 175 tankers to provide a permanent solution, he said.
“While such a large fleet would likely exceed operational requirements, even allocating funds for 80 tankers, along with maintenance and drivers, could have provided a sustainable, in-house solution that could also foster employment within the entity and the city.
Contractors do not supply water, J Water does
“What makes this expenditure particularly troubling is the limited scope of the services provided by these contractors. The companies are only responsible for supplying the vehicle, driver, and fuel — not the water itself. Joburg Water remains responsible for filling the tankers. That’s a task already compounded by the city’s staggering 46% non-revenue water loss,” said Foley.
He said the council approved a turnaround strategy for Johannesburg Water last year, emphasising the need for governance reform. The strategy, according to Foley, highlighted issues such as political interference in board appointments and tender processes.
In November, the DA presented a memorandum to the mayor. In it it urged action on the turnaround strategy and demanded accountability. However, little progress has been made.
Blames mayor’s inaction on the issue
“The failure to dissolve a board that is ill-equipped to handle Johannesburg’s water crisis underscores the mayor’s apparent apathy towards the severity of the situation. His inaction reflects a disregard for the mounting challenges — from water shortages to financial mismanagement — faced by residents daily.
“It is time for the City of Johannesburg to adopt a more pragmatic and transparent approach to managing its water resources. Investing in permanent infrastructure, enhancing governance, and eliminating undue political influence are essential steps towards ensuring reliable and equitable water access for all. Anything less is an abdication of responsibility to the people of Johannesburg,” said Foley.
