DWS Budget: Committee Report

Meeting report

Report of the Portfolio Committee on Water and Sanitation on Budget Vote 41 Annual Performance Plan of the Department of Water and Sanitation and entities for the 2022/23 financial year

Ms Shereen Dawood, Committee Content Advisor, took Members through the report. The report covered the Committee’s interaction with the Department of Water and Sanitation and its entities, Water Research ommission, Trans-Caledon Tunnel Authority, Breede-Gouritz and Inkomati-Usuthu Catchment Management Agencies, on their Strategic and Annual Performance Plans.

Discussion

Mr G Hendricks (Al Jamah-ah) thanked the team for a comprehensive report. The report outlined that Portfolio Committee had made several recommendations. He applauded the Committee for its oversight work; however, none of the recommendations seemed implementable. Despite this, it did not take away that the Committee conducted proper oversight.

The Portfolio Committee visited the Umzimvubu Water Project during oversight visits to the Eastern Cape. The dam is a high priority, as shown by President Ramaphosa’s speech. Mr Hendricks asked if there was money budgeted over the years for this project. The project was estimated to cost between R20 billion and R50 billion. The project was said to aid in providing water to the billions of people living in (former) Transkei.

He was concerned by the number of mega projects that needed to be implemented in South Africa. He was worried about the budget/money to implement these projects as there were shortfalls as shown in the budget for the 2022/23 financial year.

The Committee report had mentioned something about the "construction mafia", which made it difficult for the Department of Water and Sanitation (DWS) to carry out its mandates. He made a suggestion about the “construction mafia”.

He expressed his disapproval of the idea that all former Ministers should be investigated as they "had not done their jobs". The Chairperson of the Portfolio Committee allegedly brought this idea. Mr Hendricks felt that the idea meant that the DG would also be investigated as he oversees the allocation of finances.

Mr Hendricks noted that money had not been properly used in the past financial years. His grave concern arose from the fact that the problem of pits toilets had not been solved – even though the problem was meant to be solved during former President Nelson Mandela's tenure. Mr Hendricks said these were some of the problems that would lead to government officials being judged by the public.

He noted his party planned to make a proposal that would change “access to water” to “right to water”.

Ms G Tseke (ANC) acknowledged that Ms Dawood had done a wonderful job given the limited time. She made suggestions to point 8.1.1, rephrasing the recommendation on the pit toilets.  

The recommendation reads as follows:

“Members of the Portfolio Committee highlighted that the Department intends to eradicate 10 798 existing bucket sanitation systems in informal settlements in the year under review. Furthermore, they argued that interventions, particularly on eliminating the bucket system, have been ongoing in the last two years, with the Housing Development Agency (HDA) taking over this function. It appears as if the HDA did not implement this programme, as the number of bucket toilets is not listed on the Annual Department's Annual Performance Plan (APP)

The Portfolio Committee recommended that the Department provide clarity on this programme and indicate how it intends to address budget shortfalls on bucket toilets eradication in the Free State and Northern Cape. Furthermore, the Department should provide a progress report on its National Sanitation Framework to ensure that the country's bucket system is eliminated in terms of Norms and Standards.”

Her suggestion was:

“DWS must provide an action plan on eradicating the bucket system by end of March 2023. In addition, submit quarterly reports on the implementation of the action plan. Further, the Portfolio Committee on Water and Sanitation recommended expediting a National Sanitation Framework – which should include inputs from COGTA and the Department of Human Settlements. Engage and support the Department of Basic Education in developing a strategy to eradicate pit latrines and bucket systems in public schools. Further, recommended that the government should regulate mushrooming of informal settlements by allocating well-suitable land and ensuring that there are social amenities, such as water and sanitation.”

She felt that the recommendations were binding and gave the Portfolio Committee more power to control the situation as the issue had been going on for an exceedingly long time.

Ms Tseke then requested Ms Dawood to remove the following lines from her initial report.

“Furthermore, they argued that interventions, particularly on eliminating the bucket system have been ongoing in the last two years, with the Housing Development Agency (HDA) taking over this function. It appears as if the HAD did not implement this programme, as the number of bucket toilets is not listed on the Annual Department’s Annual Performance Plan”.

Ms N Sihlwayi (ANC) appreciated the report. She felt that it had clear recommendations. Some were extremely impressive as they indicated some of the recommendations made prior by the Portfolio Committee, which were not implemented. Her addition was on point 8.1.2.  

“Shortage of funding for mega infrastructure development: Members of the Portfolio Committee noted the shortage for mega infrastructure development as the estimated cost of the mega infrastructure projects is in access of R100 billion. The available budget is less than one per cent of this estimated cost. This means that it will take decades to achieve the country's infrastructure needs fully.

 

The Portfolio Committee recommended that the Department provide plans/interventions to address this issue and provide details on whether it is considering Public-Private Partnerships to develop mega infrastructure projects".

She suggested that to avoid budget shortfalls in some of the projects by the DWS, DWS should look into using virements as there are programmes internally that often do not exhaust their budgets – hence money is returned to National Treasury.

She made amendments to recommendation 8.2.2 on the Groundwater Programme.

“Groundwater use programme: Members of the Portfolio Committee required more information on the project that the WRC, in partnership with the Department, is currently working on, reviewing and updating maps to detect groundwater supply.

The Portfolio Committee recommended that the Department and the WRC present their findings on work to detect groundwater supply.”

She felt that that was not the only recommendation that was made by the Portfolio Committee on Groundwater Programme. She therefore added the following lines "the significance of the Water Research Commission is to make proposals on mechanisms to improve impact and sustainability. The DWS should present to the Portfolio Committee the focused action plan of immediate implementation in this quarterly."

Ms R Mohlala (EFF) thanked the Committee support staff for a comprehensive report. She agreed with what Ms Sihlwayi emphasised on the Groundwater Programme. She suggested the Portfolio Committee should see that the resources at the Department of Water and Sanitation’s disposal are used to mitigate the challenges surrounding water and sanitation in South Africa.

She did not agree with the recommendation on point 8.1.1. She argued that the Portfolio Committee must not be seen as if it is protecting other entities. If the HDA did not do what was expected, it must be said so. The Portfolio Committee had raised the concerns and the concerns must be indicated in the report. Additional suggestions on the existing recommendations should remain.

Ms C Seoposengwe (ANC) amended the recommendation on point 8.1.6.

 “Mechanisms in place to mitigate the challenges of trade debtors and non-payment to the Water Trading Entity: Members of the Portfolio Committee noted that the Department must devise control measures and plans to address long-standing challenges of trade debtors and non-payment.

The Portfolio Committee recommended that the Department present its action plans and control measures to recover monies owed to the Department and Entities, as well as provide more details on the progress made by the Multidisciplinary Revenue Committee comprising the National Treasury, the South African Local Government Association, Department of Cooperative Governance and Traditional Affairs and municipalities, as part of an intergovernmental relations initiatives to address debt collection.”

She said climate change is “something that is here with us”. DSW gave a slight report that detailed preparations of the Southern African Community. SA is experiencing climate change. She was happy that SA is also preparing to mitigate the challenges of climate change. She added that the Portfolio Committee recommended that the DWS provide a briefing on the climate change strategy mitigation measures. Regional strategic plans for industrialisation add water as a catalyst for industrialisation.

Her second point was on the recommendation 8.1.9

“Departmental contribution to job creation: Members of the Portfolio Committee maintained that the high unemployment rate in the country necessitated the need for the Department to contribute to creating jobs within the water and sanitation sector.

The Portfolio Committee recommended that the comprehensive outlook framework on job creation within the sector, once finalised, must be presented in a briefing.”

Members of the Portfolio Committee supported the need for job creation within the water and sanitation sector due to high unemployment. The DWS must supply quarterly reports on job creation to show social impacts are achieved. Ms Seoposongwe said that timeframes are extremely important.

Ms M Pietersen (ANC) thanked the officials who made the report. She commented on recommendation 8.2.4

 “Role of TCTA in the establishment of the National Water Resources Infrastructure Agency: Members queried the role of TCTA in the establishment of the National Water Resources Infrastructure Agency.

The Portfolio Committee recommended that the Department provide a detailed response on the modalities to establish the National Water Resources Infrastructure Agency.”

She added to the recommendation: “the DWS must provide a roadmap of action plans and detailed modalities with timeframes.”

Mr A Tseki (ANC) added on to recommendation 8.4.1

“Role of the Trans-Caledon Tunnel Authority transformation agenda of the country and risk management strategies in place to control coercion by the “construction mafia” to procure tenders:  Members of the Portfolio Committee raised several issues on the involvement of women in the construction industry, as highlighted in a report by the Water Research Commission. Other matters of concern within the construction industry related to increasing the involvement of black-owned companies and control of the construction industry by the so-called construction mafia.”

He felt that the word "mafia" needed to be rephrased as there are people with sincere grievances about local benefaction. These people should not be grouped with those that do not have genuine grievances. He added, "the Portfolio Committee recommended that a more detailed briefing be provided by the Department and TCTA on issues related to the transformation agenda within the construction industry further the PC recommends that the DWS should be device in acting against some cases of criminality and exploitation of the set aside 30% procurement for local content in the construction industry."

Ms Tseke added to point 8.3.2.4

“Assistance to resource-poor farmers in the catchment management area: Members of the Portfolio Committee requested further information on the agency’s assistance to the resource-poor farmers’ programme.

The Portfolio Committee recommended that the agency provide a written response on supporting resource-poor farmers in its catchment management area.”

Her suggestion was as follows:

The Portfolio Committee recommended that the agency provide a written response on supporting resource-poor farmers in its catchment management area. The PC noted that Inkomati-Usuthu had a budget shortfall of R59 million, which would have a negative impact on their programmes. The PC recommended that Inkomati-Usuthu develop a debt management policy and adopt a revenue advancement plan – and the support by DWS is vital. The DWS had shown their commitment to intervening. She emphasised the timeframe of implementation is particularly important.

Ms Seoposengwe made an addition to recommendation 8.1.8

“Joint planning with the Southern African Development Community partners on Climate Change for water security in the region: Members of the Portfolio Committee stressed the importance of the Climate Change Strategy and the Regional Strategic Action Plan for the SADC region.

The Portfolio Committee recommended that the Department provide a briefing on the Climate Change Strategy and Regional Strategic Action Plan and the SADC Industrialisation Strategy, which anchors water as a catalyst for industrialisation.”

She added the addition of "clear programmes of climate change awareness in our local communities. People should understand the situation we are in and learn about environmental risk management."

Ms Mohlala suggested that matters not discussed during the meetings should not be added [to the report]. The Portfolio Committee Members should follow principle, and the recommendations must be based on meeting discussions, not something just thought of.

The Chairperson acknowledged and agreed with Ms Mohlala. He further added that Mr Hendricks had raised a good point that the PC must not lose track of the Umzimvubu report. He agreed with Mr Hendricks that the DG must be taken on board where money is not accounted for.

The Chairperson said the PC raised discomfort about the bucket eradication process moved from DWS to HDA. The Department listened, and it is now the responsibility of DWS. The Department should commit to ending this by March 2023.

Ms Tseke questioned the HDA’s work on the bucket eradication process. There were progress reports that showed approximately 1000+ bucket toilets had been removed, and the outstanding was 10 798. She emphasised that she was not defending the Department or HDA but that the Committee should be factual about what it wrote. The text in the report could thus be retained.  

The Chairperson concurred and said the Department did say that 1 300 toilets were removed.

Mr Tseki felt that Ms Mohlala was incorrect for not allowing new information to be added to the report. The report was made up of the discussions and briefings by the DWS. He felt it was wrong to say that the recommendations should only be based on what was discussed in the previous meetings.

The Chairperson felt that the PC should not return to the HDA bucket eradication matter. Bucket eradication was DWS’ responsibility but it was transferred to HAD by the previous Minister. It was then changed to DWS – the PC appreciated that because that is what the PC wanted.

Ms Sihlwayi added to recommendation 8.4.3

“TCTA implementation of AGSA resolution on the accounting systems used in the Lesotho Highlands Water Project Treaty: The issue of reconciling accounting systems regarding the Lesotho Highlands Water Project, detailed in the Treaty, has been resolved between National Treasury, the Accountant-General and AGSA.”

She said there must be a detailed report from the DWS in the second quarter of this financial year for our monitoring and evaluation.

Ms Seoposengwe said the report should be a true reflection of the discussions when it went to the House.

She suggested a new recommendation for recruiting and retaining scarce skills in the sector. The expression made by DWS was that it could not find people with scarce skills from previously disadvantaged communities. The PC should note what the DWS said and recommend that DWS report quarterly on recruiting scientists with scarce skills. This should be done with assistance from the sister departments, including the Department of Science and Innovation and institutions of higher learning. Candidates with these skills left the country and some were leaving the Department to become consultants for the same DWS.

Ms Mohlala felt there should be debate on including new information in the report. PMG provided the minutes so the Committee could see exactly what was discussed and what was not.

She did not deny adding new information but there was inconsistency with previous reports. Members were advised not to add new information. If the ANC Members of the Committee want to make changes, all Committee Members should be allowed to do the same. She felt that she did not want to participate in further debate about new additional suggestions or recommendations as she felt that Members were not following principle.

The Chairperson attempted to interject.

Ms Mohlala requested to be allowed to express her point without being disturbed.

The Chairperson agreed with Ms Mohlala that Members should not add information that did not emanate from the meetings. Only corrections and addition to the existing recommendations should be allowed.

Regarding the HAD bucket eradication matter, Ms Dawood [content advisor] said she would consult the HDA Annual Performance Plan and find out exactly what happened. The statement could be rephrased if needed. She wanted to call the Department of Human Settlements to find out the budget that was allocated to the bucket eradication system. The additions made by Members tie in with the generic recommendations, and she felt that there were no issues in including them.

Ms Dawood said she would effect changes that were agreed upon.

Mr Thomani Manungufala, Specialist Researcher for the Committee, noted a typo on the number of buckets transferred to the HDA.

The Chairperson felt that Mr Manungufala was not entirely correct as the DWS said some of the bucket eradication was done. Ms Dawood was right to suggest that there must be further consultation with HDA or the Department of Human Settlements to get confirmation.

Ms Sihlwayi said the Chairperson was correct. She wanted to put the issue of the HDA in perspective - the PC had been observing non-performance, and it was not an investigation but rather an observation of non-performance.

The report was adopted.

Ms Mohlala said the EFF abstained from voting.

Mr L Basson (DA) noted the report but reserved his rights to vote on the report as it first needed to be presented to his caucus.

Committee minutes

The Committee considered and adopted its minutes of 8, 15, 22 and 29 March, 19 April and 3 and 4 May 2022. 

Ms Bavuma noted there were 7 minutes to be adopted.

The meeting was adjourned.