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Annual Report 2016-2017 Sedibeng Water - Annual Report 2016-2017 TABLE of CONTENTS

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Annual Report 2016-2017 Sedibeng Water - Annual Report 2016-2017 TABLE of CONTENTS Report Sedibeng Water - Annual Report 2016-2017 Sedibeng Water - Annual Report 2016-2017 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 8 Board Members 11 Acting Chief Executive’s Report 12 Executive Committee 16 Corporate Services 18 • Corporate Services Review 19 • Company Secretariat 23 • Finance 29 • Human Resources 34 • Marketing and Communication 41 • Scientific Services 46 • Technical Support & Safety, Health and Environment 61 Operations 70 • Operations Review 71 • New Business Development 75 • Northern Cape Region 82 • North West Region 88 • Free State Region 103 • Shared Services 111 Financials 118 • Statement of the Board’s Responsibility 119 • Audit and Risk Committee’s Report 120 • Environmental Protection and Management 122 • Annual Performance Report 124 • Independent Auditor’s Report 131 • 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 160 Sedibeng Water - Annual Report 2016-2017 1 CORPORATE PROFILE Introduction Sedibeng Water’s mission statement underpins this Sedibeng Water was established on 1 June 1979. excellence by focusing on: Initially it serviced the Free State Goldfields and • The appropriate treatment of wastewater and the parts of the former Western Transvaal. In 1996 supply of potable water; Sedibeng Water extended its operational area to the • Ensuring viability and sustainability; North West Province. Since then, Sedibeng Water • Creating an environment that is conducive to the grew to include the Vaal Gamagara Water Scheme growth and retention of skills; in the Northern Cape Province. • Providing effective and efficient communications; and In 2011 Sedibeng Water expanded its operational • Ensuring compliance. area further with the incorporation of the Namakwa Water Board. As a result, Sedibeng Water is now Corporate Philosophy and Values serving the Nama Khoi Local Municipality (Steinkopf, • Accessibility to an affordable consistent service; Okiep, Concordia, Carolusberg, Nababeep, and • Conducive and safe working environment; Springbok), as well as mines in the arid north- • Treating employees with respect and equality; western part of the Northern Cape. Sedibeng Water • Promoting responsible behaviour in all our has recently also incorporated the Pelladrift and employees; Botshelo Water Boards into its operations. • Fair and balanced employee rewarding system; • People development; The organisation currently services an operational • Promoting excellence and innovation for efficiency area spanning across three provinces: The Free and cost-effectiveness; State, North West and Northern Cape. This makes • Honesty and integrity in all our business Sedibeng Water one of the largest water utilities in engagements; the country in terms of the geographical area that it • Upholding principles of environmental sustainability serves. in all our operations; and • Promoting economic growth and development Vision and Mission strategy. Sedibeng Water is driven by a vision of Excellence in Water Services Provision. 2 Sedibeng Water - Annual Report 2016-2017 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. Sedibeng Water - Annual Report 2016-2017 3 AREA OF SUPPLY 4 Sedibeng Water - Annual Report 2016-2017 FOREWORD BY THE MINISTER OF WATER AND SANITATION The Honourable Ms. N. Mokonyane, MP Minister of Water and Sanitation South Africa is ranked amongst the bottom thirty Therefore, the South African government and my countries receiving the least rainfall in the world. Department in particular, will go to all lengths to As the custodian of the national water resources, I ensure that previously un-served communities, am expected to manage, preserve and allocate this especially the poor living in under-developed and scarce commodity to all citizens in an equitable and rural areas, gain access to quality potable water and sustainable manner. decent sanitation, whilst at the same time ensuring water security for all South Africans. In doing so, It is a bare truth that the previous political regime the rendering of water and sanitation services is used water and sanitation services/allocations not only restoring the dignity of our people, but also to promote inequality. However, with the dawn of provides a catalyst to economic development and democracy, a people’s government has found it fit growth opportunities in our country. to use water and sanitation as a means of uniting South Africa, alleviating poverty and creating jobs. It is my strategic intent to put water provision and sanitation services at the centre of government The role of the Ministry and Department of Water programmes and to ensure that the implementation and Sanitation is governed by the National Water of our goals and objectives are guided by the Act (Act No. 36 of 1998) and the Water Services National Development Plan. Act (Act No.108 of 1997), and together with national strategic objectives, governance and regulatory The Ministry and Department of Water and frameworks, provide an enabling environment for Sanitation lead and regulate the water sector in effective water use and management. In terms of South Africa. We are responsible for the Section 3 of the aforementioned National Water development of policy and strategy, and further Act, national government is the public trustee of provide support to national, provincial and local the nation’s water resources. Acting through the government structures in the provision of water and Minister, the Department of Water and Sanitation sanitation services. must ensure that water is protected, used, developed, conserved, managed and controlled in Sedibeng Water is one of the nine water boards that a sustainable and equitable manner. has been established for the purpose of providing Sedibeng Water - Annual Report 2016-2017 5 water and sanitation services. The organisation Water Treatment Works, the upgrade of several has been instituted as a statutory water board in pump stations and the construction of a 430km terms of the Water Services Act (Act No.108 of long pipeline. 1997). Furthermore, Sedibeng Water conducts its operations as a listed Schedule 3B entity in terms • Namakwa Project: of the Public Finance Management Act (Act No. 1 Sedibeng Water is overseeing the refurbishment of 1999). As a government business enterprise, of the aging facilities of the Namakwa Water Sedibeng Water is self-funded and being managed Board and the replacement of its key and operated in accordance with general business infrastructure components. It is encouraging to principles. Its sole shareholder is the Government see the progress made in the second phase of the Republic of South Africa, represented by the which is focussing on the replacement of the Minister of Water and Sanitation. delivery main pipeline from the Henkries River Pump Station to the Eenriet Reservoir at As a Schedule 3B public entity, Sedibeng Water’s Steinkopf. purpose is to deliver on the strategic intent set by Government. In accordance with Regulation 29 • Mier Kalahari East Pipeline Project: of the National Treasury Regulations issued in The project entailed the construction of terms of the Public Finance Management Act, the a 170km water supply pipeline system from Board of Sedibeng Water annually concludes a the existing Kalahari East take-off point (50km Shareholder Compact with the Minister of Water south east of Askham) to the towns of Askham, and Sanitation. This Shareholder Compact sets Andriesvale, Groot Mier, Kleinzee, Mier, Loubos,
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