Northern Cape municipalities are losing millions of rands through water distribution failures, with oversight findings revealing severe losses caused by ageing infrastructure, poor metering and weak billing systems.
The Northern Cape Provincial Legislature’s Joint Committee: MFMA Municipal Oversight Report found that several municipalities were battling to control water losses, creating financial pressure while undermining service delivery.
Thembelihle under severe strain
The report identified Thembelihle Local Municipality as one of the worst affected, with water losses reaching 75%.
According to the report, “water losses remained above acceptable norms at 75%, representing approximately R16.09-million in losses”.
The Auditor-General of South Africa (AGSA) further found that Thembelihle faced “significant financial sustainability challenges” while dealing with an “unfunded budget”, weak debt collection and accumulated irregular expenditure.
The report states that Thembelihle’s financial position was affected by “unauthorised expenditure of R2.28-million” and “accumulated irregular expenditure of R171.58-million”.
AGSA also found that the municipality’s service delivery performance was under strain.
“Only about 40% of selected performance targets were achieved despite approximately 66% of the budget being spent,” the report states.
The committee said Thembelihle continued to face challenges relating to “financial sustainability, revenue collection, liquidity constraints, high debtor levels, compliance with Eskom debt relief conditions, recurring audit findings, irregular expenditure, consequence management, ageing infrastructure, excessive water and electricity losses and maintenance backlogs”.
Dawid Kruiper’s metering and billing accuracy problems
In Dawid Kruiper Municipality, the report found that water losses remained a significant concern.
The municipality reported water losses of about 43%, with the committee noting concerns around metering and billing accuracy.
The report states that the municipality needed to implement “water-loss reduction initiatives and long-term asset management planning”.
The committee recommended that municipalities prioritise “infrastructure maintenance, water-loss reduction initiatives and long-term asset management planning”.
Inadequate maintenance
The consolidated findings warned that inadequate maintenance was contributing to worsening infrastructure failures.
“Inadequate preventative maintenance contributes to water losses, service interruptions, infrastructure deterioration and increased future replacement costs,” the report states.
The committee also identified weaknesses in revenue management, saying several municipalities were struggling with “billing accuracy, limited own-revenue generation and increasing operating costs”.
The report states that “realistic budgeting, effective expenditure management and strengthened revenue enhancement initiatives are critical to maintaining financial sustainability”.
The findings also highlighted the link between water losses and municipal finances.
In its recommendations, the committee called for municipalities to “prioritise interventions aimed at reducing water losses and improving the accuracy of water consumption billing through the phased implementation of metering and maintenance programmes”.
Thembelihle ordered to tighten screws
Thembelihle was instructed to reduce water losses and improve billing accuracy through quarterly progress reports.
The report said the municipality needed to “reduce water and electricity losses and address infrastructure maintenance backlogs”.
Across municipalities assessed, the committee found that infrastructure maintenance remained one of the biggest challenges.
“Infrastructure maintenance emerged as one of the most significant challenges across municipalities,” the report states.
It found that while municipalities continued investing in infrastructure projects, “maintenance budgets are often insufficient to address ageing infrastructure, rehabilitation requirements and operational sustainability”.
The report’s conclusion was that municipalities needed stronger maintenance programmes, improved revenue collection and better asset management systems to prevent further deterioration.
For residents, the findings place water losses at the centre of a broader municipal challenge: ensuring that infrastructure investments translate into reliable services and sustainable finances.
- Northern Cape municipalities are losing millions due to water distribution failures caused by ageing infrastructure, poor metering, billing inaccuracies, and weak maintenance systems.
- Thembelihle Local Municipality faces severe challenges, with water losses at 75%, leading to approximately R16.09 million in losses, alongside financial instability including irregular expenditure totaling over R171 million.
- Dawid Kruiper Municipality reported water losses around 43%, with significant concerns over metering and billing accuracy; recommendations include water-loss reduction and long-term asset management planning.
- Inadequate preventative maintenance is worsening infrastructure failures, increasing costs, and causing service interruptions, while revenue management weaknesses harm financial sustainability.
- The committee urges municipalities to strengthen maintenance programs, enhance revenue collection, improve billing accuracy, and prioritize interventions to reduce water losses and improve infrastructure sustainability.
AGSA also found that the municipality’s service delivery performance was under strain.
“Only about 40% of selected performance targets were achieved despite approximately 66% of the budget being spent,” the report states.
In Dawid Kruiper Municipality, the report found that water losses remained a significant concern.
“Inadequate preventative maintenance contributes to water losses, service interruptions, infrastructure deterioration and increased future replacement costs,” the report states.
In its recommendations, the committee called for municipalities to “prioritise interventions aimed at reducing water losses and improving the accuracy of water consumption billing through the phased implementation of metering and maintenance programmes”.
Across municipalities assessed, the committee found that infrastructure maintenance remained one of the biggest challenges.
“Infrastructure maintenance emerged as one of the most significant challenges across municipalities,” the report states.
It found that while municipalities continued investing in infrastructure projects, “maintenance budgets are often insufficient to address ageing infrastructure, rehabilitation requirements and operational sustainability”.
For residents, the findings place water losses at the centre of a broader municipal challenge: ensuring that infrastructure investments translate into reliable services and sustainable finances.
