'There were no guarantees,' says municipality at odds with Gift of the Givers over payment

The municipality said the organisation's announcement came in the midst of those discussions. Its statement "seemed to be an attempt to influence those discussions".

The municipality admitted that it had requested the NGO to assist with emergency relief following water shortages in the city in February.

"This intervention was greatly appreciated by the residents of the city and the municipality."

It said the intervention had ensured that residents were provided with clean, safe and drinkable water in a time of crisis.

During this period, the NGO also began implementing long-term solutions by drilling boreholes at key sites around the city, the municipality said.

"Gift of the Givers is quite correct to say that they did so of their own accord and no guarantees were given by Makana municipality about reimbursement or funding."

The municipality said in October 2018 that the national department of water and sanitation had said it would help with drought relief efforts by funding the drilling of boreholes.

It said a proper process had been followed in appointing a consultant as the first step to complete an underground water study and to register the boreholes already drilled.

The municipality said before the release of the grant, Gift of the Givers had arrived in Makhanda and drilled boreholes based on their own assessment of the situation. The municipality said it had since been informed by the department that proper regulations had to be followed in considering any funding to the Gift of the Givers.

"We need to follow these processes so that we do not flout supply chain regulations and give rise to audit queries."

The municipality said it hoped the impasse with the NGO would be resolved in a way that they were compensated for their efforts.

The department of water and sanitation said it had transferred R22m to the municipality to deal with its drought challenges. Department spokesperson Sputnik Ratau said how the money was spent was the responsibility of the municipality, and not the department.