Madibeng lost R151.1 million and R176.3 million respectively in revenue due to water and electricity distributions losses, the Auditor-General (AG) said in his municipal audit results for North West that was released this week.
Madibeng thus lost 65% of its revenue due to water distribution losses. The losses can be ascribed to factors such as water leaks and non-payment by consumers.
Madibeng reported the highest electricity loss of 30% or R176.3 million in revenue.
The AG business executive, responsible for North West, Success Marota, said the lack timeous maintenance was the main driver for increasing distribution losses.
“While it is acknowledged that cash flow pressures at municipalities make it difficult to spend the required amount on maintenance, the long-term impact of not doing the required amount of maintenance will be much bigger in terms of distribution losses, refurbishment and replacement cost of infrastructure.”