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Annual Report Reportreport 20162016 “Sustaining“Sustaining the the source source and and flow flow of lifeof life forever” forever” ANNUALANNUAL 20152015 SEDIBENG WATER 2015 – 2016 ANNUAL REPORT 2015 – 2016 ANNUAL SEDIBENG WATER REPORTREPORT 20162016 Sedibeng Water - Annual Report 2015-2016 TABLE OF CONTENTS Corporate Profile 2 Statement of Capability 3 Area of Supply 4 Foreword by the Minister of Water and Sanitation 5 Chairperson’s Report 9 Board Members 12 Chief Executive’s Report 13 Management Team 17 Corporate Governance 18 Corporate Services 25 • Corporate Services Review 26 • Finance 30 • Human Resources 35 • Marketing and Communication 44 • Scientific Services 50 • Safety, Health and Environment 66 Operations 75 • Operations Review 76 • New Business Development 80 • Northern Cape Region 88 • North West Region 96 • Free State Region 113 • Project Management Unit 123 Financials 128 • Statement of the Board’s Responsibility 129 • Audit and Risk Committee’s Report 130 • Environmental Protection and Management 132 • Annual Performance Report 134 • Independent Auditor’s Report 138 • Statement of Financial Position 140 • Statement of Comprehensive Income 141 • Statement of Changes in Equity 142 • Statement of Cash Flows 143 • Significant Accounting Policies 144 • Notes to the Financial Statements 161 “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 across three provinces: The Free Initially it serviced the Free State Goldfields and State, North West and Northern Cape. This makes parts of the former Western Transvaal. In 1996 Sedibeng Water one of the largest water utilities in Sedibeng Water extended its operational area to the the country in terms of the geographical area that it North West Province. Since then, Sedibeng Water serves. grew to include the Vaal Gamagara Water Scheme in the Northern Cape Province. Vision and Mission Sedibeng Water is driven by a vision of Excellence in In 2011 Sedibeng Water expanded its operational Water Services Provision. area further with the incorporation of the Namakwa Water Board. As a result, Sedibeng Water is now Sedibeng Water’s mission statement underpins this serving the Nama Khoi Local Municipality (Steinkopf, excellence by focusing on: Okiep, Concordia, Carolusberg, Nababeep, and • The appropriate treatment of wastewater and the Springbok), as well as mines in the arid north- supply of potable water; western part of the Northern Cape. Sedibeng Water • Ensuring viability and sustainability; has recently also incorporated the Pelladrift and • Creating an environment that is conducive to the Botshelo Water Boards into its operations. growth and retention of skills; • Providing effective and efficient communications; and • Ensuring compliance. 2 Sedibeng Water - Annual Report 2015-2016 STATEMENT OF CAPABILITY Technical Services Water Purification • Evaluation and planning of systems; • Chemical analysis; • Project planning and management; • Bacteriological analysis; • Refurbishment and upgrade of existing • Process upgrading; infrastructure; and • Process problem solving and control; • Implementing agency. • Process optimisation; and • Consultancy. Social Services and Community Involvement • Capacity building and training; and Training and Development Services • Community involvement in water and sanitation • Water purification and distribution: facilitation. - Theoretical and practical aspects of the operation and maintenance of different unit Wastewater Treatment processes; • Chemical and bacteriological analysis; - Process optimisation; • Chemical treatment and process upgrading; - Comprehensive filter evaluation; • Process problem solving and control; - Sampling procedures and techniques; • Process optimisation; and - Management of water quality in the network; • Consultancy. and - Reservoir cleaning. Water Quality Management in Network and • Wastewater treatment: Environmental Services - Plant optimisation; and • Chemical analysis; - Theory of wastewater treatment. • Bacteriological analysis; • Establishment of laboratories: • Toxicity testing; and - Implementation of a quality management • Consultancy (waste disposal and pollution system; and control). - Performing of chemical and bacteriological analyses on drinking water and wastewater. Water and Wastewater Management Services • Industrial cost-recovery; • Bulk water treatment and distribution; • Pollution control; and • Retail water services; • Student training programmes. • Bulk sanitation management; and • Water metering and billing services. Operations and Maintenance Services • Optimisation of operational and infrastructure efficiencies; and • Infrastructure maintenance and support services. “Sustaining the source and flow of life forever” 3 AREA OF SUPPLY 4 Sedibeng Water - Annual Report 2015-2016 Foreword by the Minister of Water and Sanitation in the past, especially in rural areas. In addition, the water and sanitation sector is currently also being confronted with arduous issues, such as the ever- rising cost factor; the demands of efficient cost- recovery; inadequate skills and expertise in rural municipalities; the imperative of coordinated and integrated planning for long-term water security solutions amidst short-term intervention initiatives; the need for innovative sanitation solutions in light of water scarcity; ensuring the affordability of water and sanitation services to community members as end-users, etc. Against this background, the Department of Water and Sanitation, as the custodian of South Africa’s water resources, is confronted with the formidable task of leading the effective management of the nation’s water resources to meet the needs of current The Honourable Ms. N. Mokonyane, MP and future generations. By executing its primary responsibility of formulating and implementing South Africa is experiencing one of the most severe policy governing the water and sanitation sector, droughts in recent years. Currently, our already the Department is striving relentlessly to ensure water scarce country is receiving even less than that all South Africans gain access to clean water average rainfall and most areas are under a dry and dignified sanitation in a sustainable manner. spell. These conditions affirm the truth of the saying: In the process of promoting effective and efficient “There is no substitute for water.” water resources management to ensure sustainable economic and social development, Water Boards Water is a critical factor in public health and also form indispensable strategic partners. an indispensable catalyst for generating economic development, prosperity and social well-being. Sedibeng Water as a Statutory Water Board Therefore, as the Department of Water and Sedibeng Water is a statutory Water Board that Sanitation, we embrace the Constitution of South has been in operation for over three decades. Africa, which states that access to water is a human This water utility currently operates across three right. Given the fact that South Africa is a water provinces, namely the Free State, North West scarce country, the management of efficient and and Northern Cape. The operational scope of the secure water supply systems has become more organisation is underpinned in its statement of important than ever before. capability, which includes: Technical Services; Social Services and Community Involvement; However, the delivery of water and sanitation Wastewater Treatment; Water Quality Management services to the masses of our country remains in Network and Environmental Services; Water and a complex and demanding process. Many of the Wastewater Management Services; Operations challenges negotiated today are still embedded in a and Maintenance Services; Water Purification, and historical legacy of neglect in the development and Training and Development Services. maintenance of water and sanitation infrastructure “Sustaining the source and flow of life forever” 5 Sedibeng Water’s assets include 15 plants, 74 pump Relevant Government Gazette Notices and stations, 499 reservoirs and a pipeline network of Directives more than 2 000km. This Water Services Provider In order to deliver water to the people and address annually supplies approximately 121.5 million kℓ of the challenges related to the prevailing drought water to mostly municipalities, the mining industry conditions, the Department of Water and Sanitation and the agricultural sector. issued the following Gazette Notices and Directives: Legislative Framework • Gazette Number 38100 was issued to Sedibeng The framework within which Sedibeng Water is Water regarding the disestablishment of the governed, is constituted by the Public Finance Botshelo Water Board and Pelladrift Water Management Act (PFMA) (Act No. 01 of 1999), the Board with effect from 1 October 2014. Thereby, Water Services Act (WSA) (Act No.108 of 1997), the operations of Sedibeng Water was extended the King Report on Corporate Governance (King III) to the areas serviced by the former Botshelo and and the Protocol on Corporate Governance in the Pelladrift Water Boards. Public Sector. The Government of the Republic of • Directive number M7336 was issued to South Africa, represented by the Minister of Water Sedibeng Water on 3 February 2015, directing and Sanitation, is the sole shareholder of Sedibeng this Water Services Provider to intervene on Water. an emergency basis in the Ngaka Modiri Molema District Municipality regarding the Eradication of As a Schedule
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