With reference to the Corporate Watch item WHEN PRIVATISED WATER BECOMES TOO EXPENSIVE reported in PAMBAZUKA NEWS 72, Part 12: to the best of my knowledge the inferred statement that Johannesburg's water services have been sold off to the French-based multinational Suez, formerly Suez Lyonnaise, is (currently at least!) simply untrue. To many of us who are against 'privatisation' and lengthy concession contracts etc such false reporting just does damage to our cause. The Johannesburg Metropolitan Council has formed a council owned water company and signed a 5 year management contract with a subsidiary of Suez. Both these actions were effected without meaningful consultation with Johannesburg residents or organised labour.

As reported on the corporatewatch website the Lesotho Highlands Water Scheme has caused Johannesburg water costs to soar. This has been happening since 1997; not just overnight. Phase 1b of the project was implemented in a very non-transparent manner since the present government was elected.

Opposition in South Africa to the early implementation of phase 2 has reached a critical mass. Implementation is therefore likely to be deferred indefinitely. However, based on the manner in which phase 1b was implemented, advocacy groups and the general public still need to remain vigilant.

It is also true that unaccounted-for water figures which include leakage but also unbilled water etc, are very high. Total unaccounted-for water is currently estimated at about 42%. It is possible that the figure is as high as 50%, but I doubt if this is all due to leakage.

I write these comments mainly as a Johannesburg resident living close to Sandton and Alexandra rather than in my professional capacity. I do, however, have a keen professional interest in both institutional arrangements and water demand management in South Africa generally.