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2013-2014 Annual Report

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2013-2014 Annual Report Rand Water Integrated Annual Report 2013 -2014 1 Rand Water’s Integrated Annual Report is our principal statement Achieve Operational to our Shareholder and Integrity and Use Best stakeholders. It covers our Fit Technology non-financial, financial and operational performance in relation to our strategic objectives. It allows the reader to assess Rand Water’s ability Achieve a High to create and sustain value in Performance Culture the short, medium and long term. The Report also makes references to our divisional Positively Engage units and their key focus areas. Stakeholder Base INFORMATION IN THIS REPORT Rand Water will submit a copy of this Integrated Report to the Association of Chartered Certified Accountants (ACCA) South Africa as part of the adjudication process for the ACCA South African Awards for Sustainable Reporting. The learning from Achieve Growth our participation in this process will contribute to Rand Water maintaining a global standard for its integrated reporting. If you would like to provide comment on the nature of our integrated reporting, please contact our Corporate Communications division via the Rand Water Maintain Financial Health Customer Service Centre – 0860 1010 60 or email [email protected]. and Sustainability An electronic version of this Report is available on our website www.randwater.co.za 2 Rand Water Integrated Annual Report 2013 -2014 SPIRIT OF PARTNERSHIP EXCELLENCE CARING EQUITY INTEGRITY Introduction An African on the Move 04 Strategic Performance Chairperson’s Report 14 Members of the Board 18 Board Profiles 19 Outgoing Board Members 23 Chief Executive’s Review 24 Executive Profile 28 Corporate Governance 30 Chief Financial Officer’s Review 46 Corporate Governance and Risk Rand Water’s Risk Review 50 Rand Water’s Group Governance 62 COO Portfolio Annual Submission 78 Operating Performance Managing our Environmental Footprint 118 Governing Stakeholder Relations Strategic Human Capital Management 128 Rand Water in the Media 146 Marketing and Stakeholder Relations 148 The Rand Water Foundation 150 Financial Reporting and Disclosure Consolidated Annual Financial Statements 160 Rand Water Integrated Annual Report 2013 -2014 3 ACHIEVE OPERATIONAL ACHIEVE A HIGH POSITIVELY ENGAGE ACHIEVE MAINTAIN FINANCIAL INTEGRITY AND USE BEST PERFORMANCE STAKEHOLDER GROWTH HEALTH AND FIT TECHNOLOGY CULTURE BASE SUSTAINABILITY 4 Rand Water Integrated Annual Report 2013 -2014 AN AFRICAN GIANT ON THE MOVE z zZ ZVVZV Rand Water and Integrated Reporting 05 A Profile of Rand Water 07 Our Strategic Objectives 08 A Vision-Led, Values Driven African Giant 09 Where We Work in South Africa 11 Chairperson’s Report 14 Members of the Board 18 Board Profiles 19 Outgoing Board Members 23 Chief Executive’s Review 24 Executive Profile 28 Rand Water Integrated Annual Report 2013 -2014 5 RAND WATER AND INTEGRATED REPORTING This integrated annual report builds on the progress, insights and feedback received during the year under review and will provide an overview of Rand Water’s financial and non-financial performance. This Integrated Report reflects our commitment to integrated reporting The compilation of this Report has been aligned to the requirements of the across the organisation for the review by z zZ ZVVZV King Code of Governance Principles for SA (King III Code), the International our Shareholder and the benefit of all our Integrated Reporting Framework and complies with the Global Reporting stakeholders. Initiative (GRI) Guidelines. We have also remained mindful of the Public Finance Management Act, 1999 (Act 1 of 1999) as amended, and its references to annual reporting. The guidelines and criteria for good reporting, monitoring This Report was tabled before the Group and evaluation systems, and service delivery indicators recommended by Audit Committee and subsequently National Treasury have also informed the compilation of this report. approved at a meeting of the Board of Rand Water on 16 October 2014. For ease of reading and information accessibility, this Report has been prepared in the first person. The terms ‘Rand Water’, ‘Rand Water Group’, ‘we’, ‘us’ and ‘our’ all refer to Rand Water and our associated operations and initiatives, Using the International Integrated unless otherwise stated. References to the year under review or the financial Reporting Committee (IIRC) structure of year in this Report refer to the period 1 July 2013 to 30 June 2014. the six capitals (financial, manufactured, human, natural, social and intellectual) SCOPE OF THE REPORT and how we build or deplete them are The Rand Water Integrated Annual Report is published annually, and addressed in this integrated report, while is then tabled before the Parliament of the Republic of South Africa by not specifically referred to in this manner. the Minister of Water and Sanitation. The Report provides information We also reference the eight material on our operations, financial, non-financial performances and integrated sustainability issues viz; responsible sustainability developments for the year ended 30 June 2014. The Report growth, services and customers, supply focuses on the business of Rand Water in South Africa and internationally. The chain management, occupational health material content in this Report should be referenced in conjunction with our and safety, employee development, Consolidated Annual Financial Statements also contained herein. The Report community engagement, resource has been approved by the Board of Rand Water and has been signed on their use and efficiency; and environmental behalf by the Chairperson, Adv Matshidiso Hashatse and the Chief Executive, management. Mr Percy Sechemane. 6 Rand Water Integrated Annual Report 2013 -2014 z zZ ZVVZV Rand Water Integrated Annual Report 2013 -2014 7 A PROFILE OF RAND WATER 12.3m GAUTENG CONSUMERS OF OUR PRODUCT Rand Water is the largest water utility in Africa. Our customer base includes 73 metropolitan municipalities, local municipalities, mines and large industries. We have an RAND WATER internationally acknowledged reputation for providing water of high quality that ranks ACADEMY GRADUATES among the best in the world. We have consistently met nationally accredited standards 2013/14 on water quality. Our geographical expansion has seen us provide water and sanitation services in Mpumalanga, the Free State and North West provinces. With respect to 3 500 expansion on the Continent, we study the bilateral and regional trade agreements RAND WATER entered into the South African government with a view to pursuing advantages that EMPLOYEES exist in those new markets. z zZ ZVVZV RAND WATER The provision of high quality bulk water services. RAND WATER BULK SANITATION FOUNDATION Extending sanitation services to Through social partnerships; water service authorities and supporting communities in the institutions within and beyond our management of water, sanitation traditional area of supply. and the environment. SECTOR GROWTH AND RAND WATER ACADEMY DEVELOPMENT Addressing key human resource, Providing sectoral support in leadership, technological and process challenges in the governance, financial management, water and sanitation sector. operations and maintenance. WHERE WE ARE BASED OUR FOCUS AND POSITIONING Head Office in Glenvista, Johannesburg, South Africa We pride ourselves on the important role we play in the Two large pumping and purification stations, at economic heartland of Southern Africa. Vereeniging and Zuikerbosch. With our experience and excellence we are able to provide Four main booster stations at Zwartkopjes, Palmiet, local authorities in South Africa and the region with Mapleton and Eikenhof. solutions to their water sector challenges. Thirteen tertiary pumping stations and a number of We are aware of the necessity to play an increasingly enclosed reservoirs and secondary booster stations. pivotal role in the water sector. A multi-billion rand regional pipeline network of We intend to pursue growth within the mandate given to approximately 3 500km. us by the Water Services Act. 8 Rand Water Integrated Annual Report 2013 -2014 OUR STRATEGIC OBJECTIVES In order to attain our strategic intent, Rand Water has set the following strategic objectives, which will focus and direct the business activities of the organisation over the planning period. Each of the Rand Water strategic objectives are underpinned by specific goals, defined key activities and targets. These are broadly categorised as follows: Achieve Operational Integrity Positively engage and use Best Fit Technology Stakeholder Base z zZ ZVVZV To ensure compliance to all statutory and To promote and implement initiatives that have a regulatory requirements. socio-economic development impact. To promote safety, health, environment and To reduce legal risk and thereby minimise the quality (SHEQ). financial and reputational impact on Rand Water. To increase protection of Rand Water’s To improve awareness of Rand Water to external assets and personnel. stakeholders. To ensure continuous supply of water to To respond appropriately to Rand Water’s environment. customers. To ensure the quality and reliability of Rand Water assets. To effectively co-ordinate Rand Water’s Achieve Growth information and communication To ensure that Rand Water infrastructure meets technology and knowledge management current and future demand. To maintain the quality of water. To promote growth through new areas of supply. To improve internal processes within the To promote growth through new product streams. Rand
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