Local Government, Environmental Affairs and Development Planning

According to the available data the total outstanding creditors of Kannaland Municipality as at 30 April 2026 amounted to approximately R135.9 million. The largest creditor is Eskom, with an outstanding balance of approximately R95.7 million relating to bulk electricity purchases. The remaining R40.2 million comprises amounts owing to various creditors, including the Auditor-General, SALGA, SAMRAS, Collaborator and other municipal creditors, including neighbouring municipalities.

2.       Kannaland Municipality remains at significant risk of losing the potential Eskom debt relief benefits due to continued non-compliance with certain conditions of the debt relief programme, including the full settlement of current Eskom accounts. The Municipality has not consistently honoured agreed payment arrangements, and ongoing non-compliance may result in Eskom and National Treasury reconsidering the Municipality's participation in the programme.

3(a) Kannaland Municipality is implementing a range of measures to strengthen revenue

        collection and enhance financial sustainability. These include:

• The implementation of its Financial Recovery Plan;
• The appointment of debt collectors;
• The blocking of prepaid electricity meters for defaulting consumers;

• Strengthening credit control;
• Updating and verifying the consumer database;
• Improving billing accuracy and conducting customer account reconciliations;
• Introducing structured payment arrangements for indebted consumers; and
• Increasing public awareness regarding the payment for municipal services.

In addition, the Municipality is benefiting from ongoing financial recovery and governance support initiatives aimed at improving revenue management and overall financial performance. Key targeted support initiatives include:

• Enforcement of fixed basic utility charges;
• Tamper sweeps and flow monitoring; and
• Targeted consumption limiting.

While these measures are expected to improve collection levels over time, revenue collection remains below the targets required under the Eskom Debt Relief Programme.

3(b)(i)    Kannaland Municipality continues to provide water services to the towns of Ladismith, Calitzdorp, Zoar and Van Wyksdorp. While water supply remains generally stable, the Municipality faces ongoing challenges related to ageing infrastructure, water losses, limited operational funding and recurring drought conditions.

Service interruptions and water quality issues do occur intermittently due to infrastructure failures and operational constraints. To address these challenges, the Municipality, with support from the Department of Local Government (DLG) and sector stakeholders, is implementing initiatives aimed at improving water security, reducing losses and strengthening operational performance.

The DLG has committed approximately R12 million over the financial periods of 2024/25 to 2026/27 to support water security and resilience through the following projects:

• Calitzdorp Upgrading / Refurbishment of Water Treatment Works;
• Development of Kannaland Water Master Plan, Water Services Development Plan (WSDP) and Water Conservation and Demand Management (WCDM) Plans;
• Klein Karoo Rural Water Supply Scheme (KKRWSS) Study;
• Ladismith WULA boreholes and surface abstraction Project;
• Ladismith Groundwater Management Plan Project;
• Calitzdorp Deep borehole project; and
• Ladismith Borehole Refurbishment.

(ii)     The Municipality’s water infrastructure is characterised by ageing assets requiring continuous maintenance and refurbishment. Financial constraints limit the Municipality’s ability to fully address infrastructure backlogs. Technical capacity remains challenging.

Despite these constraints, the Municipality continues to undertake routine maintenance and repairs within available resources, while prioritising infrastructure upgrades through grant funding and external support programmes.

The Western Cape Government, through the DLG Water Resilience Programme, provides ongoing technical and financial support to improve infrastructure reliability and asset management.

In addition to the R12 million mentioned in (3)(b(i), over the past three (3) financial years, Kannaland Municipality has also received approximately R34.7 million through the Municipal Infrastructure Grant (MIG), which has been fully utilised for critical infrastructure upgrades. These include:

• Refurbishment and upgrading of Wastewater Treatment Works in Zoar and Van Wyksdorp;
• Improvements to water treatment infrastructure; and
• Rehabilitation of sewer pump stations.

These investments have improved infrastructure reliability and contributed to addressing historical backlogs.

3(c)(i)    The Municipality’s sanitation infrastructure remains operational but continues to be affected by ageing networks, pump station maintenance requirements and the need to refurbish certain wastewater treatment facilities.

Targeted investments over the past three (3) financial years, primarily through the MIG programme, have supported:

• Upgrading and refurbishment of wastewater treatment works in Zoar and Van Wyksdorp; and
• Rehabilitation of sewer pump stations in Calitzdorp.

The investment support aims to improve system reliability, operational performance and regulatory compliance. Ongoing maintenance and operational improvements are supported by provincial and sector programmes to address critical challenges.

2. Sewer spill incidents occur intermittently and are mainly caused by ageing infrastructure, blockages, equipment failures and operational challenges. When such incidents occur, the Municipality responds by:

• Clearing blockages;
• Repairing damaged infrastructure; and
• Undertaking clean-up operations to mitigate environmental and public health risks.

Preventative maintenance and regular monitoring of sewer networks are ongoing, with infrastructure upgrades funded through MIG and other programmes expected to reduce both the frequency and severity of sewer spill incidents over time.

3(d)  The Department of Local Government (DLG) has referred the allegations to the Special Investigating Unit (SIU). However, to date, the SIU has not yet taken any action, as the President has not signed or issued the required proclamation authorising an investigation into the alleged corruption within the Kannaland Municipality.