Briefing by the Department of Water and Sanitation on the Water Services Amendment Bill; with Ministry

Video The Portfolio Committee received a briefing from the Department of Water and Sanitation (DWS) on the Water Services Amendment Bill [B24-2025], which seeks to address significant systemic failures in water and sanitation service delivery by municipalities. The amendment bill aims to strengthen national government's ability to regulate the sector while respecting the  constitutional mandate granting local government executive authority over water services. Ms Pemmy Majodina, Minister of Water and Sanitation, explained that the bill targets gaps revealed during implementation, particularly the widespread failure of Water Services Authorities (WSA) to perform their regulatory and oversight functions. The gravity of the crisis was highlighted by the 2023 Blue Drop and 2022 Green Drop assessments, which found that 105 out of 144 WSAs were experiencing delivery issues. Key proposed measures include the mandatory separation and ring-fencing of functions between the WSA (oversight/local regulator) and the Water Service Provider (WSP) (service delivery). Crucially, the amendments introduce a requirement that all WSPs must obtain an operating license issued by DWS to ensure a minimum level of competency, a measure likened to a driving license. The bill clarifies that WSP functions must include control over financial aspects such as billing and revenue collection, thereby establishing a utility model to counteract the severe financial losses caused by high Non-Revenue Water and the diversion of funds to other municipal functions. The amendments also strengthen DWS's enforcement tools, moving away from ineffective, temporary interventions under Section 139/63, by incorporating administrative enforcement procedures and penalties, including personal liability for municipal managers or entity directors in cases of non-compliance. Although Committee Members supported the necessity of the bill, concerns were raised regarding the DWS's capacity to manage the increased licensing and enforcement requirements without a significant increase in budget. A constructive discussion also focused on the "catch 22" situation where large capital grants fund projects that fail due to lack of operational and maintenance funding, leading to the suggestion that clear operational plans should be a prerequisite for future grant approvals.