Overview of Water Boards' Corporate Plans; with Minister

Video In a virtual meeting, the Portfolio Committee was briefed by the Department of Water and Sanitation (DWS) on the medium-term corporate plans of three water boards -- Vaal Central,  uMngeni-uThukela and Overberg -- including reflections on their achievements and challenges during the 2019-2024 term. The DWS presented its key strategic priorities for the next three years, including water conservation, revenue enhancement, and capital investments. They also highlighted the business turnaround strategies for Vaal Central and Magalies Water. They presented governance protocols, corporate plans and shareholder compacts, focusing on stakeholder engagement, water demand management, and financial sustainability. The presentation also mentioned developing an improved oversight model to strengthen governance, financial performance, and service delivery for all entities. uMngeni-uThukela Water (UUW) said it aimed to scale up water service provision in KwaZulu Natal province. The Board, which took office in October 2023, had appointed a new chief executive officer and had a strategic focus on areas such as operational excellence, research, development, innovation, and strategic collaboration. However, it warned of a financial risk due to reduced supply to eThekwini, resulting in a loss of R500 million. The Vaal Central Water Board, established in 2022, has experienced significant growth and expansion, with the service areas expanding from three to 13, 26 mines and cross-border arrangements. The entity was currently undergoing organisational redesign and regrading. However, it faced challenges such as increased municipal debt due to poverty and indigent municipalities, which had delayed the implementation of its capex programme. Overberg Water acknowledged its history of non-compliance with statutory requirements. The new leadership aimed to improve internal controls and grow the business. Challenges included ageing infrastructure, lack of revenue growth from water sales, a tariff backlog, and capacity constraints. The presentation focused on the short-term infrastructure plan and infrastructure master plan, and provided an assurance that the entity's finances were improving. The meeting discussed several issues, ranging from the infrastructure challenges in the sector, the impact of high municipal debt, intergovernmental relations, and strategies to turn around the struggling water boards.