MAHIKENG – North West MEC for Finance, Kenetswe Mosenogi, has called for constructive engagement between Midvaal Water Company and the City of Matlosana Local Municipality to resolve outstanding disputes relating to historical debt, service charges and corporate governance arrangements.
The MEC expressed concern over public statements suggesting possible interruptions to water supply, cautioning that such statements could create unnecessary anxiety among residents while efforts to resolve the dispute are underway.
“The provision of water is an essential service, and the interests of residents must remain our foremost consideration. We urge all parties to exercise restraint and allow the ongoing reconciliation and engagement processes to proceed in a constructive manner,” said MEC Mosenogi.
The North West Provincial Treasury-led intervention, working with the City of Matlosana Local Municipality, has been examining historical billing practices and financial obligations involving Midvaal Water Company. Over the past six months, the Provincial Executive Representative,
the municipality and Midvaal Water Company have undertaken a reconciliation of statements of account covering a ten-year period.
According to the reconciliation undertaken by the intervention, approximately R1.5 billion in historical forecast-related charges has been identified as disputed, with concerns raised regarding the accounting treatment applied to these amounts. The intervention has consequently called for the disputed amount to be written off, subject to the resolution of the underlying accounting and legal issues.
The MEC emphasised that the municipality has continued making payments to Midvaal Water Company while the disputed matters are being addressed. During the 2025/26 financial year, payments amounting to approximately R270 million were made to the company. A further R85 million has reportedly been paid during the 2026/27 municipal financial year, including payments relating to forecast charges currently under dispute.
“These payments demonstrate that the municipality has continued to meet financial obligations while seeking clarity and accountability regarding historical charges. The resolution of disputed amounts must be informed by accurate records, proper reconciliation and the applicable legal and financial frameworks,” said MEC Mosenogi.
The intervention has also raised questions concerning other charges, including a reported R21.9 million research levy, monthly capital recovery charges of approximately R5.7 million, and interest charges totalling approximately R825.8 million over the period from 2017/18 to 2025/26. Clarification has further been sought regarding the municipality’s representation on the board of Midvaal Water Company.
According to the intervention, four board positions allocated to the City of Matlosana under the company’s Memorandum of Incorporation have remained vacant since 2016. Questions have consequently been raised regarding board composition, representation and the governance processes followed during this period.
The MEC indicated that these matters require appropriate examination and clarification in accordance with the company’s governing documents and applicable legislation. The municipality and Midvaal Water Company are also involved in pending proceedings before the North West High Court. The provincial intervention will continue to respect the judicial process
while pursuing appropriate institutional engagement on matters capable of resolution. Meanwhile, the Provincial Executive Representative and the municipality are continuing with the reconciliation of additional historical statements dating back to 2005.
MEC Mosenogi has directed all affected stakeholders led by the PER to address the outstanding debt reconciliation, service charges, municipal representation and related governance matters. “Our priority is to secure a sustainable resolution that protects residents, promotes financial accountability and strengthens governance. Public disagreements should not distract us from the responsibility of maintaining essential services and resolve outstanding matters through established institutional processes,” concluded MEC Mosenogi.
End.
Issued by North West Provincial Treasury. For more information contact: Media Liaison Officer Lesedi Makhubela 062 103 2798 and Head of Communication Ms. Kesalopa Gill