Corporate Plan Briefings: Water Boards (Lepelle Northern Water; Overberg Water; uMngeni-uThukela Water; Magalies Water); with Minister and Deputy Minister

Video The Portfolio Committee on Water and Sanitation received briefings from Lepelle Northern Water, Overberg Water, uMngeni-uThukela Water and Magalies Water on their corporate plans for 2025/26–2029/30. The Minister opened the session by highlighting improvements in the Department’s oversight model and the standardisation of key performance indicators across all water boards. She cautioned, however, that municipal debt owed to the entities had risen to R25 billion by September, posing a significant threat to their operational and financial sustainability. Lepelle Northern Water reported steady improvements following years of governance instability, including six consecutive unqualified audits and zero fruitless expenditure. Despite these gains, the entity remained burdened by scattered and costly small schemes across Sekhukhune, and by low municipal payment recovery rates. Its long-term plan was focused on consolidating schemes through a regional ring-feeding system and expanding bulk-water capacity to improve efficiency and stabilise revenues. Overberg Water presented a strong performance, having achieved a clean audit and maintaining a collection rate above 95%. The entity continued to supply reliable, high-quality water to agricultural clients and municipalities, and had made progress in modernising its telemetry infrastructure. It outlined a growth strategy centred on internal cost reductions, strengthened operational systems and expanding its role as an implementing agent for municipalities and national departments. uMngeni-uThukela Water reported excellent performance results, achieving 98% of its annual targets and maintaining high water-quality standards, including a 98.69% Blue Drop compliance score. However, it warned that ongoing abstraction curtailments on the Mgeni System, delays in major supply projects such as Lower uMkhomazi, and high municipal non-revenue water levels, were placing its financial sustainability at risk. The Board indicated that above-inflation tariff increases may be unavoidable if rising costs and municipal debt continued to escalate. Magalies Water reported progress in stabilising operations, but continued to face financial pressure due to legacy debt inherited from the former Sedibeng Water, alongside uneven municipal payment levels. Delays in key capital projects, including upgrades to the Klipdrift system, had constrained its ability to fully meet growing water-demand requirements in its service areas. Members acknowledged the improvements presented by several water boards, particularly regarding audit outcomes, infrastructure upgrades and governance controls. However, they expressed deep concern about the mounting municipal debt crisis, the uneven delivery of major water schemes, the poor state of infrastructure in rural regions, and the affordability of future tariff increases. The persistent challenge of non-revenue water within municipal systems, and the lack of effective consequence management, were highlighted as urgent issues requiring coordinated intervention. In response, the Department and water boards committed to enhancing debtor-management strategies, finalising payment agreements with defaulting municipalities, improving internal controls and accelerating priority infrastructure projects. They further undertook to strengthen tariff-setting transparency, invest in operational efficiencies and renewable-energy solutions, and improve monitoring and reporting on high-risk projects. The Committee also requested written updates on municipal debt recovery, progress on major infrastructure programmes, and steps taken to address outstanding audit findings.