DWS, Water Research Commission, Trans-Caledon Tunnel Authority Annual Reports 2025/26

Video Annual Reports 2025/26 The Committee met virtually with the Department of Water and Sanitation (DWS), the Water Research Commission (WRC) and the Trans-Caledon Tunnel Authority (TCTA) to be briefed on their 2025/26 annual reports. The Minister was absent due to bereavement, so the Deputy Ministers led the delegation. The Department reported that it had achieved 57% of its targets and spent 97.9% of its budget although its Water Services Management programme achieved only 40% of its targets. Municipal debt remained a major concern, with debtor days at 504 against a target of 150. The Deputy Minister reported that the Water Trading Entity remained a major concern as the Auditor-General had reported a regression in its audit outcomes with an unqualified audit but with findings. The Trans-Caledon Tunnel Authority reported that it had achieved 17 of its 19 targets, but had received a qualified audit opinion and a deficit of R789 million. The Water Research Commission reported a clean audit and 81% achievement of its targets, but said that its Chief Executive Officer was on precautionary suspension and that its financial sustainability remained a risk. Members were sharply critical of the gap between spending and performance. It had given a mediocre response to the long-standing question on the Giyani Water Project which was more than ten years old,. Members said that most indicators of water and sanitation service delivery were regressing. They questioned how a backlog of 2 688 unserved communities could be addressed by the 84 schemes installed, and why access was counted as delivered when infrastructure was not maintained. Concern was raised that municipalities that had not submitted corrective action plans, only six of 40 dam safety evaluations had been completed, and the Sebokeng, Giyani and Vaalharts projects were delayed. Questions were asked about the Matjhabeng unfinished sewer infrastructure and the the Free State bucket eradication programme. The Deputy Minister agreed that the country faced a crisis and said that the Department’s success depended on the functioning of local government. DWS undertook provide a detailed written response on the project risks. The discussion became heated over R5.45 million that the Auditor-General had flagged as potential fruitless and wasteful expenditure on avoidable professional fees at the Trans-Caledon Tunnel Authority. Committee members were not satisfied with TCTA's explanation. The CEO said this amount had not been mentioned in its presentation as the issue was still under assessment. He explained that a tender had to be restarted after an outside service provider had apparently gained confidential information. The Committee requested information on delayed water projects such as the uMkhomazi water project (uMWP). It was also to report original and revised completion dates and costs for all its major projects, and to say what it had changed to stop the same delays recurring including the Lesotho Highlands Water Project Phase 2 and the flagged R5.45m. The Committee would meet again with TCTA to present on the uMWP to be followed by a potential site visit. The Water Research Commission reported a clean audit outcome which reflected its financial and governance performance. However, WRC still faced challenges on leadership continuity, staff capacity, procurement and the implementation of digital systems. In answer to Members' questions it said WRC research was informed by DWS priorities, and therefore those of government and society. Government invested heavily in research and innovation, but innovations were not taken up due to the barrier was procurement rules under the PFMA, which made no provision for government to procure directly from innovations that it had funded.