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Sedibeng Water - Annual Report 2011-2012 TABLE of CONTENTS

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Sedibeng Water - Annual Report 2011-2012 TABLE of CONTENTS Sedibeng Water - Annual Report 2011-2012 TABLE OF CONTENTS Corporate Profile 2 Statement of Capability 3 Area of Supply 4 Chairperson’s Report 5 Board Members 7 Chief Executive’s Report 8 Management Team 12 Corporate Governance 13 Corporate Services 17 • Corporate Services Review 19 • Finance 21 • Human Resources 25 • Marketing and Communication 31 • Scientific Services 33 • Safety, Health and Environment 49 Operations 55 • Operations Directorate Review 57 • New Business Development 59 • Technical Support 61 • Northern Cape Region 64 • North West Region 68 • Free State Region 77 Financials 83 • Statement of the Board’s Responsibility 84 • Audit Committee’s Report 85 • Environmental Protection and Management 86 • Annual Performance Information Report 87 • Independent Auditor’s Report 92 • Statement of Comprehensive Income 94 • Statement of Financial Position 95 • Statement of Changes in Equity 96 • Statement of Cash Flows 97 • Significant Accounting Policies 98 • Notes to the Financial Statements 111 Sustaining the Source and Flow of Life Forever 1 CORPORATE PROFILE Introduction The organisation currently services an operational Sedibeng Water was established on 1 June 1979. area spanning more than 86 000 square kilometres It serviced the Free State Goldfields and parts of across three (3) provinces: Free State, North West the former Western Transvaal. In 1996 Sedibeng and Northern Cape. This makes Sedibeng Water one Water extended its operational area to the North of the largest water utilities in the country. West Province. Since then Sedibeng Water grew to include the Vaal Gamagara Water Scheme in the Vision and Mission Northern Cape Province. Sedibeng Water is driven by its vision of Excellence in Water Services Provision. Sedibeng Water has recently expanded its operational area even further with the incorporation Sedibeng Water’s mission statement underpins this of the Namakwa Water Board. As a result, commitment to excellence by focusing on: Sedibeng Water now serves the Nama Khoi • The appropriate treatment of wastewater and Local Municipality (Steinkopf, Okiep, Concordia, supply of potable water; Carolusberg, Nababeep and Springbok) and the De • Ensuring viability and sustainability; Beers Namaqua mines in the arid north-western • Creating an environment that is conducive to the part of the Northern Cape. growth and retention of skills; • Providing effective and efficient communications; and • Ensuring compliance. 2 Sedibeng Water - Annual Report 2011-2012 STATEMENT OF CAPABILITY Technical Services Operations and Maintenance Services • Evaluation and planning of systems; • Optimisation of operational and infrastructure • Project planning and management; efficiencies; and • Refurbishment and upgrade of existing • Infrastructure maintenance and support infrastructure; and services. • Implementing agency. Water Purification Social Services and Community Involvement • Chemical analysis; • Capacity building and training; and • Bacteriological analysis; • Community involvement in water and sanitation • Process upgrading; facilitation. • Process problem solving and control; • Process optimisation; and Wastewater Treatment • Consultancy. • Chemical and bacteriological analysis; • Chemical treatment and process upgrading; Training and Development Services • Process problem solving and control; • Water purification and distribution: • Process optimisation; and - Theoretical and practical aspects of the • Consultancy. operation and maintenance of different unit processes; Water Quality Management in Network - Process optimisation; • Chemical analysis; - Sampling procedures and techniques; • Bacteriological analysis; and - Management of water quality in the network; • Consultancy. and - Reservoir cleaning. Environmental Services • Wastewater treatment: • Chemical analysis; - Plant optimisation; and • Bacteriological analysis; - Theory of wastewater treatment. • Toxicity testing; and • Establishment of laboratories: • Consultancy (waste disposal and pollution - Implementation of a quality management control). system; and - Performing of chemical and bacteriological Water and Wastewater Management Services analysis on drinking water and wastewater. • Bulk water treatment and distribution; • Industrial cost-recovery; • Retail water services; • Pollution control; and • Bulk sanitation management; and • Student training programmes. • Water metering and billing services. Sustaining the Source and Flow of Life Forever 3 AREA OF SUPPLY 4 Sedibeng Water - Annual Report 2011-2012 CHAIRPERSON’S REPORT has fulfilled its mandate with honour and integrity. In line with its performance in the past, Sedibeng Water has again received an unqualified audit report for the year under review. This is not only indicative of the organisation’s commitment to prudent financial management, but also reflects good governance and efficient operations that are prerequisites for long term viability and sustainability. New business was generated through stakeholder interaction programmes. An agreement was reached between Sedibeng Water and the Dr. Ruth S. Mompati District Municipality to take over the operation and maintenance of the Christiana Wastewater Treatment Plant (Lekwa Teemane Local Municipality) and the Pudimoe Water Purification Plant. Negotiations are still under way to further expand our services in the Dr. Ruth S. Mompati District Municipality. T.B. Phitsane Chairperson Sedibeng Water has achieved an improved employment equity profile in compliance with As Chairperson of the Board of Sedibeng Water, legislation and the implementation of benchmarked it gives me much pleasure to present the employment policies and practices. In addition, organisation’s annual report for the 2011/2012 several training and development initiatives were financial year, which ended on 30 June 2012. The devised to ensure that staff members have the Bloem Water Board was instructed in 2009 by the opportunity to improve their skills. This is then Minister of Water Affairs, Ms. Buyelwa Sonjica, instrumental to the cultivation of a better qualified to oversee the affairs of Sedibeng Water. Resultantly, and equipped workforce. All of this resulted in this is the third year that this oversight role had been a favourable working environment for optimal performed successfully. performance by management and employees alike. During the year under review, Sedibeng Water Once again Sedibeng Water has invested continued to progressively position itself as an considerably in its Corporate Social Investment important role player and partner in the water Programme to the benefit of communities in its services sector in South Africa, especially in the operational area. The main focus of this programme Free State, Northern Cape and North West is to assist previously disadvantaged schools with provinces that form its area of operations. Driven special needs (disability), women, non-governmental by its vision of Excellence in Water Services organisations, community-based organisations Provision, the organisation has made a significant and other cause-worthy organs of civil society. contribution towards addressing government’s Assistance took on the form of donations, imperatives related to the delivery of water services sponsorships and the development of sports to communities. In so-doing, Sedibeng Water and arts. Sustaining the Source and Flow of Life Forever 5 Some highlights of the year under review include I would also like to express my gratitude to the the laboratory at Balkfontein maintaining its SANAS Minister of Water Affairs who has continuously accredited status after successfully undergoing expressed confidence in the Board and its an external technical audit against the ISO/IEC governance of the organisation. The Minister’s 17025:2005. Furthermore, Sedibeng Water’s plants support, as well as the guidance given to us by at Balkfontein and Virginia have been awarded Blue the Department of Water Affairs and the Portfolio Drop Status. The Matjhabeng Local Municipality Committee, are highly appreciated and played a received similar status for five of their plants, significant role in our achievements during the namely Welkom, Hennenman, Allanridge, Virginia 2011/2012 financial year. and Ventersburg. The Department of Water Affairs acknowledged and congratulated both I thank the Acting Chief Executive, Mr. Rembuluwani organisations for also achieving the Provincial Takalani for his valued contribution throughout Top Performer Award. the year. Like in the past, he continued to lead by example in a selfless fashion. His leadership and During the year under review, the Professional clear vision have been an inspiration to the Board. Management Review (PMR) awarded Sedibeng Water with the Diamond Arrow Award in the As part of an efficient team, the Bloem Water Board Northern Cape (2011) and Free State (2012) of Directors is proud to serve Sedibeng Water and provinces. The organisation has also received the remains committed to oversee the affairs of the Silver Arrow Award during 2011 in both the North organisation for as long as the Minister sees fit. West and Free State provinces. Furthermore, the Golden Arrow Award was presented to Sedibeng Water in 2012 for its remarkable contribution to economic growth and development in the Northern Cape province. T.B. Phitsane On behalf of the Board, I wish to thank the Chairperson management and all employees of Sedibeng Water for their contribution towards the achievements and success of the organisation during the past financial year.
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