Overview
- Auditor‑General officials and National Treasury told Parliament that Johannesburg Water’s reported R4 billion surplus is a bookkeeping entry, with the cash long swept into the City of Johannesburg’s central account.
- The sweeping arrangement, in place since 2002, forces the utility to request funds daily to pay suppliers, with AGSA noting frequent shortfalls or delays from the city.
- AGSA attributed roughly 30% of supplier payment delays to the sweeping practice and 70% to Johannesburg Water’s internal inefficiencies, an assessment some MPs challenged.
- Operational performance has deteriorated sharply, with pipe bursts rising from 20,729 to 33,436 year‑on‑year and 2025 water losses reaching R2.8 billion, plus documented compliance failures at Goudkoppies and growing reliance on costly emergency tankers.
- Parliament requested detailed AGSA analyses and legal clarity on MFMA implications, National Treasury warned non‑compliant municipalities could forfeit grants under proposed utility‑style reforms, and civil society pressed for a full accounting of how the swept funds were used.