The Chairperson of the Portfolio Committee on Water and Sanitation, Mr. Lulu Johnson, to investigate the finances of the Department of Water and Sanitation under Minister Nomvula Mokonyane following the request by the Opposition parties in parliament.
The investigation will include both National Treasury and the Auditor General.
According to the opposition, the Department has close to R5 billion in outstanding debts.
- In February, the Department confirmed that the Water Trading Entity (WTE) has an outstanding overdraft with the Reserve Bank as on 22 February 2017 which amounts to almost R3 billion.
- In a presentation to the Portfolio Committee in March, Minister Nomvula Mokonyane confirmed her department’s financial difficulties, admitting that unpaid outstanding invoices amounted to almost R1,5 billion.
- In response to a parliamentary question, the Department also confirmed that it owed various Water Boards close to R 500 million.
The Department’s backlog in paying contractors and outstanding invoices means that projects currently in progress will not be completed. This could lead to legal action against the department, which will result in even further financial troubles.