Governance Investigation into Umgeni-Uthukela Water Welcomed and Must be Expedited

The Portfolio Committee on Water and Sanitation has welcomed the announcement that the Minister of Water and Sanitation intends to initiate an investigation into a series of governance concerns that have emerged within the past month. The committee called for the process to be expedited to ensure the water utility’s integrity and credibility is preserved, particularly as it seeks external funding for major infrastructure projects.

“The various media reports, including the removal of the Chairperson of uMngeni Water Services, issues around board fees, and the sponsorship of an employee to the New York Marathon, raise serious concerns about governance mechanisms within the entity,” said Mr. Sello Dithebe, acting committee Chairperson. “Water plays a vital role in driving socio-economic development, and the governance of water entities must be beyond reproach.” The committee welcomed the board’s commitment to make its policy framework available for scrutiny and advice on its sponsorship of individuals and employees for sporting activities.

While not seeking to pre-empt the outcomes of the proposed investigation, the committee emphasised that the current positive credit rating for the utility is of national importance and must be actively protected to ensure its long-term viability.

The committee 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,” Mr. Dithebe stated. “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 remains concerned about ongoing challenges municipalities face in addressing non-revenue water. It warned that unless this issue is resolved, investments in bulk infrastructure could be rendered ineffective. “Municipalities must pull up their socks and urgently address non-revenue water losses,” Mr. Dithebe added.

In line with promoting energy resilience, the committee urged the utility to expedite its plans to convert biogas from sludge into electricity at the Darvill Waste Water Treatment Plant. This project would allow the facility to continue operations even during power outages.

Regarding the Upper uMkhomazi Water Project, the committee encouraged the Trans-Caledon Tunnel Authority to deepen stakeholder consultations and engage with key government departments, including the Department of Rural Development and Land Reform and the Department of Cooperative Governance and Traditional Affairs, to secure broader support.

The committee also underlined the importance of securing off-take agreements with municipalities to ensure the sustainability of water infrastructure investments.

The committee is currently conducting an oversight visit to key infrastructure projects in KwaZulu-Natal, including the Lower uMkhomazi Water Project, Ngwadini Dam and the Mdloti River Development Project.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.