BREAKING NEWS: Court grants City of Tshwane order to attach Madibeng’s bank account due to multimillion dept

BRITS – The high court in Pretoria granted the City of Tshwane permission to attach the account of the Madibeng Municipality on Tuesday, 12 July 2022 in an effort to force the Municipality to settle its multimillion rand water debt. According to Tshwane spokesperson Selby Bokaba, the Municipality owes R258 million for unpaid bulk water.

“In August 2021, the two municipalities entered into a payment arrangement in terms of which the former would settle their account in instalments over a specific payment period, but they failed to honour their commitment,” Bokaba said.

At the time the agreement was entered into, Madibeng’s debt stood at about R243 million and Tshwane was forced to restrict the Municipality’s water usage by 50%. Bokaba said Tshwane buys bulk water from Rand Water and provides it to Madibeng and other municipalities and they are expected to pay their accounts at the end of each month.

The city’s court application was aimed at enforcing the settlement of Madibeng’s debt by attaching its bank account. The attachment of the bank account would enable it to recoup the funds owed and assist the city in paying its creditors.