[vc_row][vc_column][vc_column_text]STATEMENT: Board of uMngeni-uThukela Water is re-appointed

Issued by the Corporate Stakeholder Management Unit, uMngeni-uThukela Water

Thursday, 4^th November 2021

The National Government Cabinet has endorsed the re-appointment of the previous Board of uMngeni-uThukela Water that was disbanded by the former Minister of Human Settlements, Water and Sanitation, Ms Lindiwe Sisulu.

This was confirmed by uMngeni-uThukela Water, which said uMngeni-uThukela Water had received notification of the Cabinet decision on Thursday, 4^th November 2021. The incoming Board of uMngeni-uThukela Water will begin exercising its governance oversight role as Accounting Authority with immediate effect.

The Board in question was disbanded in August 2020 by the then-Minister of Human Settlements, Water and Sanitation, Ms Lindwe Sisulu, citing absence of Cabinet endorsement of the Board as the reason for her decision. This Board was replaced with an Interim Board.

Some members of the disbanded Board began a legal challenge to the former Minister’s decisions (disbanding of the Board and appointment of an Interim Board) in the KwaZulu-Natal High Court, Pietermaritzburg. The High Court in its judgment last week ruled that the decisions to disband the Board and appoint an Interim Board were unlawful and set aside both decisions. The disbanded Board was appointed by the then-outgoing Minister of Water and Sanitation, Mr Gugile Nkwinti, in May 2019 for a term of four years. In terms of the judgement, the Interim Board will be disestablished.

The current Minister of Water and Sanitation, Mr Senzo Mchunu, has since ratified the appointment of the former Board and submitted Board members’ names for endorsement – which was confirmed at Wednesday’s Cabinet meeting. The Board has been re-appointed in order to strengthen governance within uMngeni-uThukela Water. Members of the re-appointed Board have vast experience in the water sector and expertise in business, finance, legal and management disciplines.

The Board Members who have been re-appointed by the Minister of Water and Sanitation and endorsed by the Cabinet on Wednesday, 3^rd November 2021, are:

Corporate Stakeholder Management Unit, Head Office, uMngeni-uThukela Water, Pietermaritzburg[/vc_column_text][vc_column_text][/vc_column_text][vc_btn title=”Download Document” style=”classic” color=”primary” link=”url:https%3A%2F%2Fwww.umngeni-uthukela.co.za%2Fwp-content%2Fuploads%2F2021%2F11%2FBoard-of-uMngeni-uThukela-Water-is-re-appointed-.pdf”][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]STATEMENT: Appointment of An Acting Accounting Authority At uMngeni-uThukela Water

It is widely known by now that the KwaZulu-Natal High Court, Pietermaritzburg, has reviewed and set aside the decision of the former Minister of Human Settlements, Water and Sanitation to disband the previous Board of uMngeni-uThukela Water and replace it with an Interim Board. In his ruling, Justice J. Bezuidenhout found both decisions (disbandment of previous Board and appointment of an Interim Board) to be unlawful and awarded costs in favour of the nine applicants, all of whom were members of the disbanded Board.

The Minister of Water and Sanitation, Mr. Senzo Mchunu, MP, has acted swiftly and begun the process of ratification, as prescribed in the High Court judgment. In terms of Section 35 read in conjunction with Schedule 1 procedure of the Water Services Act of 1997, Ministerial approval of recommended names for appointment to a Board is required, followed by the submission of these names to the National Government Cabinet for endorsement, before Board business can begin. In executing the court outcomes, the disestablishment of uMngeni-uThukela Water’s Interim Board will also have to occur.

In the instance of disestablishment, Section 49 of the Public Service Management Act No 1 of 1999 prescribes that the Chief Executive of an entity of State automatically becomes the Accounting Authority. To this effect, Minister Mchunu has formalised the appointment of the Acting Chief Executive of uMngeni-uThukela Water, Mr. Sandile Bonga Dube, as Accounting Authority, while the mandatory process for the appointment of the disbanded Board is being completed.

This serves to inform all stakeholders that processes are underway for the appointment of the Board and that the Acting Accounting Authority will continue governance oversight functions.

Mr. Dube is an experienced engineer who has extensive knowledge about the business of uMngeni-uThukela Water, having served in an Executive capacity within the organisation and, before that, in entities involved in service delivery. Mr. Dube holds various academic qualifications, among them a Master of Science Degree in Engineering from the University of Witwatersrand and a Bachelor’s Degree in Civil Engineering from the Durban University of Technology.

Stakeholders of uMngeni-uThukela Water are assured that under the stewardship of Mr. Dube there will be full compliance with all governance prescripts and commitments of uMngeni-uThukela Water, including uninterrupted product and services provision.[/vc_column_text][vc_column_text][/vc_column_text][vc_btn title=”Download Document” style=”classic” color=”primary” link=”url:https%3A%2F%2Fwww.umngeni-uthukela.co.za%2Fwp-content%2Fuploads%2F2021%2F11%2FStatement-APPOINTMENT-OF-AN-ACTING-ACCOUNTING-AUTHORITY-AT-UMGENI-WATER-_02-1.pdf”][/vc_column][/vc_row]

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Issued on behalf of the Board of uMngeni-uThukela Water by the Corporate Stakeholder Management Unit, uMngeni-uThukela Water Head Office, Pietermaritzburg

The Board of uMngeni-uThukela Water wishes to announce that Mrs Nomalungelo Mkhize has tendered her resignation as Acting Chief Executive and Chief Financial Officer with immediate effect.

Mrs Mkhize cited personal reasons for her resignation. The Board of uMngeni-uThukela Water met on Friday, 8th October 2021, deliberated on the matter and Mrs Mkhize’s resignation was accepted.

The Board thanks Mrs Mkhize for her loyal service to uMngeni-uThukela Water, both as Chief Financial Officer and as Acting Chief Executive, and wishes her well in her future endeavours.

At the Board meeting of 8th October 2021, Mr Sandile Bonga Dube, currently Executive: Operations at uMngeni-uThukela Water, was appointed Acting Chief Executive. He took up this position on Monday, 11th October 2021. Mr Dube will serve as Acting Chief Executive until a permanent Chief Executive is appointed.

Mr Dube holds various academic qualifications, among them a Master of Science Degree in Engineering from the University of Witwatersrand and a National Diploma in Civil Engineering from the Durban University of Technology. He joined uMngeni-uThukela Water in February 2021 as Executive: Operations.

He has more than 20 years experience in the civil engineering and allied fields, including having worked as Chief Engineer at the Municipal Infrastructure Support Agency, within the Department of Co-operative Governance and Traditional Affairs. He has also held key roles in the disciplines of civil and structural designs and in contract supervision and administration of rural and urban roads, railways, water and sanitation, structures, buildings and electricity and mechanical.

Mr Bheki Mbambo, Project Leader in the Infrastructure Development Division at uMngeni-uThukela Water, has been appointed Acting Executive: Operations.[/vc_column_text][vc_btn title=”Download Document” style=”classic” color=”primary” link=”url:https%3A%2F%2Fwww.umngeni-uthukela.co.za%2Fwp-content%2Fuploads%2F2021%2F10%2FAnnouncement-by-the-Board-of-uMngeni-uThukela-Water.pdf”][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]STATEMENT: Status of Water Resources as of 10th September 2021

Issued by Shami Harichunder, Corporate Stakeholder Manager, uMngeni-uThukela Water

Rains during the past weekend and early this week have pushed up the levels of the four dams in the Middle South Coast. By Friday, 10^th September 2021, the dams in that region – Nungwane, Umzinto, EJ Smith and Mhlabatshane – were in excess of 100% and overflowing. These dams supply the towns of Umzinto, Park Rynie, Pennington, Scottburgh and surrounding villages.

Rainfall recorded month to date (1^st September 2021 to the present) at monitoring stations close to the Middle South Coast dams amounted collectively to 196 mm. A total of 70 mm was received at Amanzimtoti; this is lost to rivers and streams as there no dams close to Amanzimtoti.

The other dam that is overflowing is Home Farm in Ixopo, which supplies the town of Ixopo and surrounding areas. Approximately 48 mm rainfall from 1^st September 2021 to the present has resulted in this dam reaching 110%, from 109% a week ago.

In the vast Mgeni System, a total of 246 mm rainfall has been received month to date. However, this has not made a significant difference to the levels of the six dams in this system,  namely Mearns, Spring Grove, Midmar, Albert Falls, Nagle and Inanda. On Friday, 10^th September 2021, the levels of dams in the Mgeni System were at:

• Spring Grove: 82% and unchanged from a week ago
• Mearns: 90%, representing an increase of 8% from a week ago
• Midmar: 92% and unchanged from a week ago
• Albert Falls: 49% and unchanged from a week ago
• Nagle: 92% and unchanged from a week ago
• Inanda: 87% and unchanged from a week ago

The level of Midmar Dam is being supported by pumping from Spring Grove and Mearns. Albert Falls – the largest dam in KwaZulu-Natal – remains of concern to uMngeni-uThukela Water because it has been at below 50% for approximately six years. Water is being pumped from Midmar Dam and water transfers are occurring from Inanda Dam to stabilise the level of Albert Falls Dam.

Total raw water storage in the entire Mgeni System is at 76%, which is considered acceptable and there is no risk of water supply shortages occurring in the short to medium-term. The Mgeni System supplies the municipalities of uMgungundlovu, Msunduzi and eThekwini.

Month to date rainfall in the Hazelmere System has been estimated at 50 mm, and the level of Hazelmere Dam was at 37% on 10^th September 2021. This level is unchanged from a week ago. Further north, in Maphumulo, iMvutshane Dam was at 52%, an increase of 1% from a week ago.

Hazelmere Dam supplies the water needs of the north of eThekwini, including Verulam, and parts of iLembe, including Ballito, while iMvutshane Dam supplies the Maphumulo area.

There is adequate raw water in this system to meet current, short and medium treatment needs.

The storage capacity of Hazelmere Dam has been more than doubled through raising of the dam wall. The current level of 37% translates into 80% based on its previous storage.

uMngeni-uThukela Water has released its quarterly analysis of water resources within its supply area and projections on rainfall for the spring and early summer months.

As expected, the amount of rainfall received during May and June 2021 in the entire uMngeni-uThukela Water supply area was below average.

However, the outlook for spring and the first half of summer is above average rainfall. This is good news because, if it materialises, dam levels will increase rapidly, thereby improving water resource adequacy.[/vc_column_text][vc_btn title=”Download Document” style=”classic” color=”primary” link=”url:https%3A%2F%2Fwww.umngeni-uthukela.co.za%2Fwp-content%2Fuploads%2F2021%2F09%2FUW_Statement_Status-of-Water-Resources10-09-2021.pdf”][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]Communique from the Board of uMngeni-uThukela Water: Further progress in respect of various governance-related matters, 29 July 2021

Progress with audit and forensic investigation matters continues

In March and May 2021 during a series of annual performance results presentations to uMngeni-uThukela Water’s stakeholders, the Board of uMngeni-uThukela Water made a full disclosure on irregular, fruitless and wasteful expenditure that was identified in an audit by the Office of the Auditor-General South Africa.

The final report of the Auditor-General made numerous recommendations on remedial action to address, among others, the issue of irregular expenditure with a view to ensuring that there is no financial loss to uMngeni-uThukela Water or to the national fiscus. Similarly, the Auditor-General expects that measures will be adopted to adequately mitigate and manage future incidences of this nature. In line with the Board’s commitment to ensure proper governance protocols, all of the recommendations in the Auditor-General’s report are being implemented so that the governance vision and objectives set by the Board are achieved. The recommendations of a concomitant independent forensic investigation into three awarded tenders and associated supply chain process are also being implemented with alacrity.

In a communique shared with the investor community in June 2021, the Board reported extensively on progress regarding the Auditor-General recommendations, as well as implementation of corrective action proposals made by SekelaXabiso CA Inc., which conducted the forensic investigation referred to above after being appointed for this mandate through uMngeni-uThukela Water’s supply chain process.

This communique provides feedback from the Board on additional breakthroughs that have been made as matters pertaining to governance and identified areas of weaknesses in governance and policies and procedures continue to receive increased attention.

Appointment of legal experts to work with the Board on corrective measures

As previously stated by the Board, irregular expenditure identified in the Auditor-General’s findings pertained to contract variations and changes to scope of work that were apparently not approved by the National Treasury, as required by Instruction Note 3 of 2016/17, and where applicable by other appropriately delegated persons. Investigations conducted in response to the Auditor-General’s findings and in terms of the National Treasury Framework for irregular, fruitless and wasteful expenditure have made good progress in unravelling some of the details pertaining to non-compliance regarding approvals and accompanying possible transgressions of the Public Finance Management Act. We are at a stage now where intense examination of these matters has separated possible common errors or deficiencies from issues that could potentially form the basis for disciplinary action and consequence management, including where possible institution of legal action for recovery of monies. This teasing out of issues now creates a clearer picture about what motivations are to be made in terms of the National Treasury Framework for condonation. Amendments to the Public Audit Act No 25 of 2004 have become an important guide in assisting us through this process.

Of specific importance in this regard and to ensure seamless implementation of the recommendations contained in the final reports, the Board resolved at its meeting on 21st July 2021 to appoint a firm of legal experts to guide it on implementation of corrective actions, including conducting consequence management. The legal firm Bowmans was selected through uMngeni-uThukela Water’s supply chain process for this purpose.[/vc_column_text][vc_btn title=”Download Document” style=”classic” color=”primary” link=”url:https%3A%2F%2Fwww.umngeni-uthukela.co.za%2Fwp-content%2Fuploads%2F2021%2F07%2FCommunique-from-the-Board-of-uMngeni-uThukela-Water-Further-progress-in-respect-of-various-governance-related-matters-Thursday-29th-July-2021.pdf”][/vc_column][/vc_row]