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Good Practices and Innovations in Public Governance 2003-2011

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<strong>Good</strong> <strong>Practices</strong> <strong>and</strong> InnovATIONS <strong>in</strong> <strong>Public</strong> <strong>Governance</strong><br />

Africa<br />

South Africa<br />

2007 Category 2 W<strong>in</strong>ner<br />

e’Thekw<strong>in</strong>i Water <strong>and</strong> Sanitation Debt Relief<br />

e’Thekw<strong>in</strong>i Municipality, South Africa<br />

Description<br />

Reduc<strong>in</strong>g the consumption of water <strong>and</strong> encourag<strong>in</strong>g citizens to pay for the water<br />

used by <strong>in</strong>volv<strong>in</strong>g all stakeholders through participatory water management.<br />

Summary<br />

This project has provided successful solutions to reduc<strong>in</strong>g the public debt <strong>and</strong> manag<strong>in</strong>g<br />

water consumption <strong>in</strong> the e’Thekw<strong>in</strong>i Municipality <strong>in</strong> South Africa by <strong>in</strong>volv<strong>in</strong>g<br />

all stakeholders <strong>in</strong> identify<strong>in</strong>g leaks <strong>and</strong> ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g consumption under the free<br />

water limit.<br />

The Problem<br />

Local governments <strong>in</strong> South Africa, metropolitan municipalities <strong>in</strong> particular, are<br />

faced with spiral<strong>in</strong>g water debt due to the non-payment or irregular payments by customers<br />

<strong>in</strong> low-<strong>in</strong>come areas. As the majority of all local government <strong>in</strong>come is generated<br />

locally, steady cutbacks from national <strong>and</strong> prov<strong>in</strong>cial government to local government<br />

have resulted <strong>in</strong> reduced transfers coupled with exp<strong>and</strong>ed responsibilities.<br />

This has made cost-recovery <strong>and</strong> cost cutt<strong>in</strong>g measures <strong>in</strong>evitable. These challenges<br />

contributed to local government’s <strong>in</strong>ability to address basic service backlogs <strong>in</strong> municipalities,<br />

which owed huge sums of money. By July 2004, the e’Thekw<strong>in</strong>i Municipality<br />

had to address the R20 million <strong>in</strong> outst<strong>and</strong><strong>in</strong>g water payments <strong>in</strong> 20 of the worst<br />

pay<strong>in</strong>g wards <strong>in</strong> the municipal area. Moreover, many citizens liv<strong>in</strong>g <strong>in</strong> the e’Thekw<strong>in</strong>i<br />

Municipality had very little hope of ever repay<strong>in</strong>g their debt <strong>and</strong> return<strong>in</strong>g to a stable<br />

f<strong>in</strong>ancial position. Thous<strong>and</strong>s of customers, who were ‘blacklisted’ by credit bureaus,<br />

could not open accounts, <strong>and</strong> feared hav<strong>in</strong>g their homes sold to recover debt; they also<br />

experienced other forms of f<strong>in</strong>ancial restrictions. Due to the devastation brought on by<br />

HIV/AIDS, many households were headed by pensioners <strong>and</strong>/or children. This further<br />

heightened economic <strong>and</strong> social pressure with<strong>in</strong> these households. Arbitrarily cutt<strong>in</strong>g<br />

off their water supply would have worsened their economic position <strong>and</strong> have devastat<strong>in</strong>g<br />

consequences for the well be<strong>in</strong>g of these families.<br />

The Solution<br />

To address these challenges, the e’Thekw<strong>in</strong>i Municipality, with support from the<br />

Department of Water Affairs <strong>and</strong> Forestry, conceptualized <strong>and</strong> developed a debt relief<br />

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