ATC240722: Report of the Select Committee on Cooperative Governance and Public Administration (Traditional Affairs, Human Settlements, Water and Sanitation on Consideration of the 2024/25 Annual Performance Plan and Budget Vote of the Department of Water and Sanitation, Dated 16 July 2024
NCOP Cooperative Governance & Public Administration
Report of the Select Committee on Cooperative Governance and Public Administration (Traditional Affairs, Human Settlements, Water and Sanitation on Consideration of the 2024/25 Annual Performance Plan and Budget Vote of the Department of Water and Sanitation, Dated 16 July 2024
Having considered and deliberated on the 2024/2025 Annual Performance Plan and Budget Vote of the Department of Water and Sanitation, the Select Committee on Cooperative Governance, Public Administration, (Traditional Affairs, Human Settlement, Water and Sanitation, reports to the National Council of Provinces as follows:
1. LEGISLATIVE FRAMEWORK
The Money Bills Amendment Procedure and Related Matters Act (Act No.9 of 2009) empowers Parliament to recommend, reject or amend budgets of National Departments and Organs of State. The Act also enjoins Committees of Parliament to compile and adopt Budget Vote Reports, based on interactions with the relevant Departments and entities on their respective strategic and annual performance plans and budgets.
1.2. The Money Bills Amendment Procedures and Related Matters Act (2009) empowers Parliament to recommend, reject or amend budgets of National Departments and Organs of State.
1.3. The Act also enjoins Committees of Parliament to compile and adopt Budget Vote Reports, based on interactions with the relevant Departments - and Entities reporting to them - on their Strategic Plans, Annual Performance Plans and Budgets.
1.4. The Select Committee on Cooperative Governance and Public Administration (Traditional Affairs, Human Settlements, Water and Sanitation) has a constitutional mandate to exercise oversight over the Department of Water Affairs and its Public Entities, namely Water Research Commission, Trans-Caledon Tunnel Authority, Breede-Gouritz and Inkomati –Usuthu Catchment Management Agencies.
1.5. The mandate of the Department of Water and Sanitation is underpinned by the provisions of the constitution and the Bill of Rights, 2030 vision of the National Development Plan as well as the goals of the United Nations Sustainable Development related to water and sanitation.
1.5. As part of ensuring executive accountability, strengthening parliamentary oversight and preparing members for the policy debates scheduled in the NCOP on 16 July 2024, the Select Committee scheduled physical briefing meeting on 15 July 2024 to consider the 2024/2025 Annual Performance Plan and Budget Vote of the Department of Water and Sanitation
2. 2024/2025 Annual Performance Plan and Budget Allocation of the Department of Water and Sanitation
2.1 The Department of Water and Sanitation presented the 2024/25 Annual Performance Plan (APP) and budget allocation to departmental programmes. The presentation focused on outputs, indicators and annual targets and budget allocation related to departmental programmes, namely, Administration, Water Resource Management and Water Service Management Programmes.
3. Programme 1: Administration
3.1. The purpose of this programme is to provide strategic leadership, management and support services to the Department. The programme also develops and promotes international relations on water resources management with neighbouring countries
3.2. The major outputs planned for this programme include implementation of financial recovery and turnaround plan, Annual International Relations Programme and Annual stakeholder management and partnership programme
4. Programme 2: Water Resource Management
4.1. The purpose of this programme is to ensure that the country’s water resources are protected, used, developed, conserved, managed and controlled in a sustainable manner for the benefit of all people and the environment. This is done by developing a knowledge base and implementing effective policies, procedures and integrated planning strategies for water resources.
4.2. Some of the output indicators of this programme include determination and monitoring of Water resource classes and Resource Quality Objectives; development of ; Wastewater management plans; development of integrated water resource plans; monitoring of water resources monitoring programmes; review of 6 information systems and maintenance by 2025; implementation of strategic water resources infrastructure projects; development and implementation of water resource regulatory prescripts and streamlining of water resource management institutional arrangements
5. Programme3: Water Service Management
5.1. The purpose of this programme is to develop, rehabilitate and refurbish the raw water resources and water services infrastructure to meet the socio-economic and environmental needs of South Africa.
5.2. Some of the output indicated planned in this programme include completions of the number of feasibility studies for water and wastewater services projects (RBIG); number of implementation readiness studies (IRS) for water and wastewater services projects (RBIG); number of regional bulk infrastructure project phases; number of regional bulk infrastructure projects phases funded through Budget Facility for Infrastructure (BFI) under construction; number of regional bulk infrastructure projects phases funded through Budget Facility for Infrastructure (BFI); and replacement of number of existing bucket sanitation backlog systems in formal settlements
6. 2024 Medium Term Expenditure Framework
6.1. The Department’s budget over the medium-term expenditure framework or MTEF is R134.909 billion. This consists of allocations of R42.604 billion, R46.362 billion and R45.941 billion in the 2024/25, 2025/26 and 2026/27 financial years respectively.
6.2. The Department’s budget consists of two components: Main account: funded from budget allocations from NT. Water Trading Entity: does billing and receives revenue from the sale of raw water. Used for transfers to the TCTA to enable it to repay its loans, as well as to fund operation and maintenance of national water resource infrastructure.
6.3. On the main account, the Department has been allocated R72.989 billion over the MTEF. This consists of allocations of R24.074 billion, R25.159 billion and R23.754 billion in 2024/25, 2025/26 and 2026/27 respectively.
6.4. Included in the main account budget are conditional infrastructure grants for municipal water services totalling R36.305 billion over the MTEF. This includes R20.130 billion for the Regional Bulk Infrastructure and R16.175 billion Water Services Infrastructure Grants.
6.5. The Water Trading Entity also receives some transfers from the fiscus for infrastructure projects. The Water Trading Entity has budgeted R61.920 billion over the MTEF consisting of R18.530 billion, R21.202 billion and R22.187 billion in 2024/25, 2025/26 and 2026/27 respectively.
7. Observations of the Select Committee
7.1. The Select Committee has welcomed the 2024/2025 Annual Performance Plan and budget allocation of the Department of Water and Sanitation. The Select Committee has noted that the Annual Performance Plan has been aligned and integrated with the Medium-Term Strategic Framework of the 6th Administration and the 2023 state of the nation address (SONA)
7.2. The Select Committee has noted the introductory remarks of the Minister that the department of water and sanitation has implemented the financial recovery and turnaround plan that yielded positive results and reduced its under-expenditure and improper expenditure (i.e. irregular, fruitless and wasteful as well as unauthorised expenditures) and stabilised the positions of senior management through filling of critical vacant positions.
7.3. The Select Committee has also noted that the department has made progress in unblocking delays of major water infrastructure projects which include the implementation of Phase 2 of Lesotho Highlands Water Project, Ntabelanga Dam on the uMzimvubu River, uMkhomazi Water Project in KZN, and Phase 2 of the Vaal Gamagara regional bulk water project in Northern Cape.
7.4. The Select Committee has further noted that there are general municipal capacity challenges that have been identified in the Blue, Green and No Drop assessments. The findings from the Drop reports are consistent with the Municipal Strategic Self-Assessment (MuSSA) by municipalities.
7.5. The Select Committee welcomed the departmental executive undertaken to support several municipalities to improve their water services, such as uGu, Mopani, Sekhukhune, Mathjabeng, Mangaung, Emfuleni, Rustenburg, Sol Plaatjie, Makana, Knysna and Lekwa.
7.6. The Select Committee has noted and welcomed the commitment of the Department of Water and Sanitation to implement financial turnaround plans and measures to improve audit outcomes, achieved unqualified Audit Opinions in both Accounts in the previous financial years.
7.7. The Select Committee has furthermore noted that the department has highlighted investment in infrastructure by fast-tracking of the Lesotho Highlands water project, plans to increase the capacity of major dams in the country.
7.8. While welcoming the 2024/2025 Annual Performance Plan, the Select Committee raised concerns about water loss, slow progress on eradication of bucket system, quality of water provided through water tankers, lack of impact on the implementation of departmental annual targets at the level of municipalities in rural areas.
8. Recommendations of the Select Committee
8.1 Having considered and deliberated on the 2024/2025 Annual Performance Plan and Budget Vote of the Department of Water and Sanitation, the Select Committee recommends to the National Council of Provinces as follows:
8.1.1. The Department of Water and Sanitation should provide a provincial update report on the status of water and sanitation projects including the support provided to the municipalities in the country
8.1.2. The Department of Water and Sanitation should provide progress reports on implementations of War on Leaks Programmes, ground water use, financial recovery plan dealing with historical problems of corruption, consequence management, irregular expenditure, investigations by the Special Investigation Unit and plans to mitigate the impact of vandalism, theft, load-shedding on water provision.
8.1.3. The Department of water and sanitation should provide the National Council of Provinces with progress reports on directives issued in Municipalities in terms of sections 62 and 63 of the Water Services Act of 1997
8.1.4. As part of ensuring executive accountability and performing oversight, the Select Committee should align its quarterly programme in line with the 2024/2025 Annual Performance Plan of the Department of Water and Sanitation.
8.1.5. The Department of Water and Sanitation should provide quarterly progress reports on achievements of outcome indicators as contained in the 2024/2025 Annual Performance Plan and Budget Vote
8.1.6. The Select Committee on Cooperative Governance and Public Administration (Traditional Affairs, Human Settlement, Water and Sanitation) should undertake proactive oversight visits during the 2024 parliamentary term to selected municipalities in Free State (Maluti-A-Phofung Municipality), Northern Cape and Limpopo Provinces in order to assess the state of water treatment plant, sanitation programmes, war on leaks programmes, water reticulation and turn- around time on water licencing.
8.1.7. The Select Committee on Cooperative Governance and Public Administration (Traditional Affairs, Human Settlement, Water and Sanitation) should undertake proactive oversight visits during the 2024 parliamentary term to selected municipalities which have been issued with the directives in terms of section 62 and 63 of the Water Service Act 1997 in order to monitor progress made as the result of intervention
Report to be considered