Annual Report 2018/19
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INTERGRATED ANNUAL REPORT 2018/19 AMATOLA WATER INTEGRATED ANNUAL REPORT 2018/19 1 VISION TO BE A LEADER IN PROVISION OF BULK WATER SERVICES IN THE EASTERN CAPE MISSION AMATOLA WATER STRIVES TO EXCEL IN CONTRIBUTING TO THE SOCIO-ECONOMIC DEVELOPMENT BY PROVIDING BULK WATER SERVICES IN THE EASTERN CAPE PROVINCE IN AN ETHICAL AND SUSTAINABLE MANNER. VALUES • PROFESSIONALISM • ACCOUNTABILITY • EXCELLENCE • INNOVATION • STAKEHOLDER FOCUS • TEAM ORIENTATION • INTEGRITY GENERAL INFORMATION REGISTERED NAME REGISTERED OFFICE EXTERNAL AUDITORS Amatola Water Board ADDRESS Auditor-General South Africa 6 Lancaster Road Frere Road, Trust Building REGISTRATION Vincent 5217 East London 69 Frere Road, Established by the Honourable Eastern Cape South Africa Vincent Minister of Water Affairs and Forestry, Postal address East London 5217 proclaimed in Government Gazette Private Bag X3 Number 18409 of 14 November Vincent 5217 BANKERS 1997, as empowered by the Water Standard Bank and Nedbank Services Act 108 of 1997, as well TELEPHONE as the Public Finance Management +27 (0)43 707 3701/3752 COMPANY SECRETARY Act, 1999 (Act No 1 of 1999, as Advocate Gulshan Singh amended by Act No 29 of 1999). EMAIL (Resigned - 30 June 2019) The organisation is a Schedule [email protected] 3(B) national government business STAKEHOLDER LIAISON enterprise. WEBSITE OFFICER www.amatolawater.co.za Unathi Mbali Manager Office of CEO +27 (0)43 707 3701 [email protected] 2 AMATOLA WATER INTEGRATED ANNUAL REPORT 2018/19 TABLE OF CONTENTS GENERAL INFORMATION 2 LIST OF ABBREVIATIONS/ACRONYMS 4 FOREWORD BY MINISTER OF HUMAN SETTLEMENTS, WATER AND SANITATION 6 CHAIRPERSON’S STATEMENT 8 CHIEF EXECUTIVE’S REPORT 10 SECTION 1: INTRODUCTION 16 SECTION 2: CONTEXT & STRATEGY 26 SECTION 3: PERFORMANCE INFORMATION 50 SECTION 4: LEADERSHIP & EMPLOYEE DEVELOPMENT 64 SECTION 5: ENVIRONMENTAL SUSTAINABILITY 74 SECTION 6: OPERATIONAL REVIEW 80 SECTION 7: CORPORATE GOVERNANCE 94 SECTION 8: FINANCIAL REVIEW 118 SECTION 9: ANNUAL FINANCIAL STATEMENTS 128 SECTION 10: ANNEXURES ANNEXURE A: SPLIT OF PRIMARY AND OTHER ACTIVITIES 196 ANNEXURE B: FIVE-YEAR HISTORICAL STATISTICAL OVERVIEW 197 ANNEXURE C: PERFORMANCE AGAINST ANNUAL PERFORMANCE PLAN 2018/19 199 ANNEXURE D: GRI CONTENT INDEX 208 AMATOLA WATER INTEGRATED ANNUAL REPORT 2018/19 3 ABBREVIATIONS FULL NAME ABBREVIATION FULL NAME ABBREVIATION And & Financial Year FY Accounting ACC Financial Viability FV Accounting Standards Board ASB Further Education and Training FET Water Services Act ACT Global Reporting Initiative Generation 4 GRI G4 Amathole District Municipality ADM Governance Committee GOVCO Amatola Water AW Government Business Enterprises GBE Audit and Risk Committee ARC Government Outcomes GOV OUT Auditor-General of South Africa AGSA Government Water Scheme Supply GWSS BAAN Computerised Maintenance Generaly Recognised Accounting Practice GRAP Management System BAAN GRI (formerly the Global Reporting Initiative) GRI Baccalaureus Procurationis BPROC Gross Domestic Product GDP Bachelor of Arts BA Honourable Hon Bachelor of Commerce BCom Honours Hons Bachelor of Law LLB Human resources HR Bachelor of Science BSc Human Resources Remuneration Committee HRRC Bachelor of Technology BTech Human Resources Management HRM Broad-based black economic empowerment BBBEE Implementing Agent IA Bulk Water Supply BWS Information and communication technology ICT Capital expenditure Capex Information Management Steering Committee ITSCM Chartered Accountant (South Africa) CA (SA) Infrastructure Master Plan IMP Chief Executive CE Infrastructure Stability IS Chief Financial Officer CFO Institute of Directors in South Africa IoDSA Chief Risk Officer CRO Institutional realignment and reform IRR Commission for Conciliation, Mediation CCMA Integrated management system IMS and Arbitration Integrated Reporting IR Committee of Sponsoring Organisations COSO Inter-Governmental Relations IGR Community Action Africa CAA International Accounting Standards IAS Community/Environmental CE International Ethics Standards Board for Accountants IESBA Companies and Intellectual Property International Standards on Auditing ISA Commission CIPC International Executive Development Programme leDP Construction Industry Development Board CIDB Intergovernmental Relations Framework Act No 13 Contract Participation Goals CPGs of 2005 IGFRA Cooperative Governance and Traditional Affairs CoGTA International Integrated Reporting Council IIRC Customer Satisfaction CS International Integrated Reporting Delegation of Authority DoA Council’s International Integrated Department of Public Service and Administration DPSA Reporting Framework IIRC <IR> Department of Cooperative Governance DCoG International Organization for Standardization ISO Department of Education DoE International Professional Practices Department of Public Works DPW Framework IPPF Department of Science and Technology DST Information Technology IT Department of Human Settlements, Key Performance Indicator KPI Water and Sanitation DHSWS Kilolitre Kl Department of Water and Sanitation Objective DWS OBJ Kilometre Km Development Bank of Southern Africa DBSA Kilowatt Hour per Cubic Meter KWH/M3 Director-General DG King Code of Governance Principles and Disabling Injury DI the King Report on Governance King IV Disabling incident frequency rate DIFR King Sabata Dalindyebo KSD Disaster Recovery Plan DRP King Sabata Dalindyebo Local Municipality KSDLM Energy, Water, Sector Education and EWSETA King Sabata Dalindyebo Presidential Intervention KSDPI Training Authority Leadership and Employee Development LG Enterprise Performance Management EPM Legum Baccalaureus LLB Environmental Management System EMS Legum Magister LLM Expanded Public Works Programme EPWP Local Municipality LM Federated Employers’ Mutual Assurance FEMA Loss Time Injury LTI Finance Committee FINCO 4 AMATOLA WATER INTEGRATED ANNUAL REPORT 2018/19 FULL NAME ABBREVIATION FULL NAME ABBREVIATION Management Committee MANCO Rand per kilo R/KL Master of Leadership MBL Regional Bulk Infrastructure Grant RBIG Master of Commerce MCom Regional Water Scheme RWS Master of Science MSc Research and Development R&D Master’s in Business Administration MBA Return of Assets ROA Member of Parliament MP Reverse Osmosis RO Modified Poly Vinyl Chloride mPVC Right of Use ROU Medium-Term Strategic Framework MTSF Safety, Health and Environment SHE Megalitre Ml Short Message Services SMS Memorandum of Understanding MOU Small, Medium and Micro Enterprises SMME Municipal Infrastructure Grant MIG South Africa SA Nelson Mandela Bay Metro NMBM South African Association of Water Utilities SAAWU Not applicable N/A South African Bureau of Standards SABS National Diploma ND South African Institute of Professional Accountants SAIPA National Department of Public Works NDPW South African Local Government Association SALGA Number No South African Municipal Workers’ Union SAMWU Number # South African National Accreditation System SANAS National Occupational Safety NOSA South African National Standard SANS Association (South Africa) South African Police Services SAPS Public Audit Act of South Africa, PAA South African Rand ZAR 2004 (Act No 25 of 2004) South African Revenue Service SARS Nooitgedagt/Coega Low-Level Scheme NCLLS South African Statements of Generally Objective Number OBJ NO Accepted Accounting Practice SA GAAP Occupational Health and Safety OHS Stakeholder Relationships and Support SS Occupational Health and Safety Advisory Services OHSAS Strategic Goals SO Oliver Reginald OR Strategy and Business Development Committee SBDC Operational Optimisation OO Sundays River Valley Local Municipality SRVLM Operational Resilience OR Supervisory Control and Data Acquisition SCADA OR Tambo District Municipality ORTDM Supply Chain Management SCM Personal Protective Eqiupment PPE Technical and Vocational Education and Training TVET Photovoltaic PVC Total Dissolve Solids TDS Postgraduate Diploma PGDip Trinity Broadcasting Network TBN Preferential Procurement Policy Framework Act PPPFA Turnaround Plan TAP Public Management Act PFMA Water Adequacy WA Project and Development P&D Water Quality WQ Project Development Unit PMU Water Services Authority WSA Provincial Joint Tactical Team PJTT Water Services Utility WSU Professional Service Provider PSP Water Treatment Works WTW Doctor of Philosophy PhD Volkswagen VW Quarter Q Quick Reference QR Code Radio Frequency RF AMATOLA WATER INTEGRATED ANNUAL REPORT 2018/19 5 FOREWORD BY MINISTER OF HUMAN SETTLEMENTS, WATER AND SANITATION The improvements in water resources management and access to water supply and sanitation services are essential to addressing various social and economic inequalities in South Africa, such that all its citizens enjoy the multiple benefits of the basic human right to access water. This affirmation is enshrined in the Constitution which contains several provisions that give direction to the water and sanitation sector. It is imperative to note that the Constitution guarantees: • The right to an environment that is not harmful to health or wellbeing (Section 24(b) (i to iii)); • The right to have access to sufficient food and water (Section 27(1)(b)); • That the property clause may not impede the state from taking measures to achieve land, water and related reform, to redress the results of past racial dis crimination (Section 25(8)). The National Water Act of 1998 and the Water Services Act of 1997 were enacted to affirm that all South Africans have the right to access water and placed this responsibility on all three spheres of the