The Portfolio Committee on Water and Sanitation has welcomed news that the Minister of Water and Sanitation intended to initiate a probe following reports of governance issues at uMngeni-uThukela Water.
Image: Independent Newspapers Archives
The Portfolio Committee on Water and Sanitation has welcomed the news that the Minister of Water and Sanitation intended to initiate a probe following reports of governance issues at uMngeni-uThukela Water in KwaZulu-Natal.
The issues raised include the removal of the chairperson of subsidiary uMngeni Water Services, questions about board fees, and the sponsorship of an employee to participate in the New York Marathon. The chairperson of uMngeni Water Services was removed for reportedly failing to declare interest in a company that did business with the entity.
Acting committee chairperson Sello Dithebe said the various media reports on the matters raise serious concerns about governance mechanisms within the entity.
The committee's comments come after the utility informed the committee that the Minister had expressed the intention to institute an investigation into the governance challenges.
Ditebe said: “Water plays a vital role in driving socio-economic development, and the governance of water entities must be beyond reproach.”
While not seeking to pre-empt the outcomes of the proposed investigation, the committee emphasised that uMngeni Water’s current positive credit rating “is of national importance and must be actively protected to ensure its long-term viability.”
The committee is currently conducting an oversight visit to major KwaZulu-Natal water projects, including the Lower uMkhomazi Water Project, Ngwadini Dam and the Mdloti River Development Project.
It also applauded the announced R22 billion capital expenditure (capex) budget, noting that infrastructure development is key to unlocking economic growth.
“The successful implementation of this plan is essential,” said Dithebe. “To realise its full benefits, the utility must ensure it has the required skills and capacity to implement the capex plan effectively.”
However, the committee raised concerns about municipalities’ ongoing challenges in addressing non-revenue water. “Municipalities must pull up their socks and urgently address non-revenue water losses,” Dithebe said.
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