Media release by the Department of Water Affairs and Forestry

30 June 2005

The Durban High Court yesterday, 29 June 2005, authorised the Zululand based Impala Irrigation Board to close the sluices of farmers who refused to pay for their water.

The Court ruled in favour of the Impala Water User Association (supported by the Department of Water Affairs and Forestry) in its case against certain defaulting members in respect of payment of water use charges.

A number of members of the Impala Water User Association (“Impala”) at Pongola, refused to pay a portion of water use charges relating to a debt incurred as a result of the construction of the Bivane Dam. The debt exists in terms of a loan agreement which was entered into between Impala Water User Association and the Rand Merchant Bank.

“This is an important decision which will enable the country’s water managers to maintain discipline in the use of this scarce resource” said Director General Mike Muller. “It upholds the penalties provided for in the National Water Act (NWA) and all water users should take note.”

The court ruled that Impala has a statutory right to raise water use charges and the respondents cannot refuse to pay. The raising of water use charges is an administrative action in terms of the Promotion of Administrative Justice Act, 2000 and stands until set aside on review by a court of law.

The court further held that Impala does not need further authorisation by the High Court to proceed in terms the NWA to restrict the water supply to the respondents until the arrear water use charges are paid.

The respondents argument that Impala does not have the right to claim payment in its own name as all its rights, title and interests to the water use charges have been ceded to Rand Merchant Bank was also rejected The court however held that the cession does not prevent Impala to sue for arrear water charges.

The following was ordered by the court:

• Payment of arrear water use charges with interest.

• Impala is entitled in terms of the NWA to restrict the water supply to the respondents until the outstanding amounts are paid.

• Costs are awarded in favour of Impala.

For enquiries and more information please contact Mr Mahomed Vawda on:

Tel: (012) 336 8391

Cell: 082 808 2818