The Department of Water and Sanitation (DWS) officially filed a lawsuit against the Newcastle Municipality, suing the government entity for water services rendered during the period from 1 April 2002 to 31 August 2016. This matter has been fiercely disputed by the municipality, which has gone as far as filing a formal plea in the case.
It should be stressed that the DWS sued the Municipality for R49,350,822.29, with an additional estimated legal cost of R350,000.
In an effort to understand the reasons behind this significant legal action, Newcastillian News reached out to Newcastle Municipal Manager Zamani Mcineka and the Department of Water and Sanitation. Questions were raised about why the DWS had taken legal action to recover such a substantial amount, particularly given that the lawsuit relates to water services provided over a 12-year period.
Newcastle Municipality’s Municipal Manager, Zamani Mcineka, responded by stating, “Unfortunately, I cannot comment on the matter as the case is under sub judice. However, we are dealing with the matter in the appropriate manner.”
While Mcineka could not provide further comment, DWS spokesperson Mavasa Wisane offered detailed insight into the matter. Wisane clarified that the lawsuit was not due to irregularities within the water system but rather because of the municipality’s failure to settle its outstanding debts.
“The municipal account was handed to the attorney on or around that period for recovery of debt relating to raw water charges in line with the water use licence, as obliged in terms of the National Water Act. The municipality was issued with a water use licence to draw water from a water source for treatment and supply to its customers. However, the municipality failed to meet its debt repayment obligations to the department for the raw water allocated over a period of time,” Wisane explained.
Wisane further elaborated that the matter was lodged with the South African High Court in Pietermaritzburg in an effort to recover the debt owed by the municipality. Despite the legal efforts, the department ultimately decided to write off the debt, categorising it as irrecoverable.
However, this did not mean that the Newcastle Municipality escaped the situation without significant repercussions.
The DWS took decisive action against the municipality following the debt write-off. “At the time of litigation, the municipality had a water use licence and was allocated water directly by the Department of Water and Sanitation and was required to make payment to the department’s Water Trading Entity. Subsequently, the municipality’s water allocation was transferred to the defunct Mhlathuze Water (now merged to be Umgeni uThukela Water Board), which is currently providing readily treated water to the municipality for distribution to its customers,” Wisane further stated.
As a result of this development, Newcastle Municipality no longer holds a water use licence. Instead, it now operates as a customer of the Umgeni uThukela Water Board, which supplies treated water for distribution within the municipality.
While the Newcastle Municipality managed to avoid paying the immense sum of R49,350,822.29 because the DWS wrote off the debt, but in the progress lost its control over water allocation and now relies on the Umgeni uThukela Water Board for its water supply, what are your thoughts on the above?
Comments 6
No thoughts on this matter.
No wonder the NLM – MM avoid the numerous calls to appear in UBCMF, I am expecting similar situation from the other sister LMs and the ADM,
Honestly does anyone believe that this municipality with its arrogant rude staff and councilors really care, it isn’t there money after all, but they certainly know how to spend other people’s money on absolute rubbish, with no accountability from government, so really this is just another sick joke.
The town is a chaotic mess, and now the contemplation of mining companies blowing Newcastle to smithereens soon there will be nothing left. Who cares? Those that did have come and gone for good.
What is the role of Uthukela Water with these developments?
Since you were at stage the mayor of this town surely you know their role, unless you want to tell us that during your tenure such information was with held for sinister reason. Ngoba Cha nisinyisile bo!
It’s unfair to us as we are paying municipality every month but they are not paying, we sleep and wake up without water Longhomes Osizweni but those who are not paying they always got water even watering their grass wheares we don’t have a drop in out taps, no reading taken like you use them or not but same amount everytime.