The Portfolio Committee on Water and Sanitation has welcomed improvements in the performance of water boards, Lepelle Northern Water and Overberg Water, while warning that persistent misalignment across the water value chain continues to leave some communities without reliable access to water.
The committee is currently reviewing the annual reports of all water boards and this week received briefings from Lepelle Northern Water and Overberg Water.
While the committee commended the governance and operational improvements reported by the two entities, they warned that the positive results are not always reflected in the lived experiences of communities served by the water boards.
Committee Chairperson Leon Basson said the good performance by the water boards is a direct representation of a fractured system, where improvements in the performance of the water boards do not translate into direct positive outcomes for communities.
“In a fully functional system, improvements in the performance of the water boards would lead to a tangible improvement in water access for the people,” Basson said.
Basson said municipalities, which play a key role in the water value chain, continue to place pressure on the system due to high levels of non-revenue water in municipal reticulation systems and persistent non-payment for bulk water services supplied by water boards.
“These challenges pose a significant risk to the financial sustainability of water boards,” he said.
The committee reiterated its call for stronger collaboration between the Department of Water and Sanitation and the Department of Cooperative Governance and Traditional Affairs (CoGTA) to ensure comprehensive alignment across the water value chain and safeguard access to water as a foundation for socio-economic development.
Lepelle Northern Water performance
The committee welcomed improvements in governance and operational performance at Lepelle Northern Water, which achieved an overall 90% performance rate against its planned targets.
Given the governance and operational challenges the entity faced in previous financial years, the committee encouraged the board and senior management to continue prioritising liquidity and the overall financial health of the entity.
While revenue collection improved by 11%, the committee raised concerns about the growing level of municipal debt owed to the entity, which has increased to R1.36 billion.
The committee reiterated that municipal debt to water boards requires urgent attention to ensure the long-term sustainability of both water boards and the broader water supply system.
Overberg Water urged to expand revenue base
Regarding Overberg Water, the committee emphasised the need for the entity to develop a clear growth strategy to expand its revenue base and ensure long-term sustainability.
The committee welcomed several initiatives aimed at improving revenue generation, including plans to secure additional industrial customers and farmers, as well as proposals for the entity to manage wastewater treatment works on behalf of municipalities and commercial clients.
The committee also noted positively the clean audit outcome achieved by Overberg Water.
“It remains the committee’s view that sound governance and strong financial management form a critical foundation for institutional effectiveness and service delivery,” Basson said.
NEDLAC’s comment on Water Services Amendment Bill
Meanwhile, the committee has resolved to give the National Economic Development and Labour Council (NEDLAC) 14 days to make a submission on the Water Services Amendment Bill [B24–2025].
The decision follows a request by NEDLAC for more time to allow engagement with the Department of Water and Sanitation on the proposed legislation.
However, the committee said the three-month extension requested by NEDLAC is not practical and would unreasonably delay the parliamentary consideration of the Bill. – SAnews.gov.za
