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Annual Report 2014 - 2015 “Sustaining the Source and Flow of Life Forever”

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Annual Report 2014 - 2015 “Sustaining the Source and Flow of Life Forever” Annual Report 2014 - 2015 “Sustaining the source and flow of life forever” TABLE OF CONTENTS Corporate Profile 2 Statement of Capability 3 Area of Supply 4 Chairperson’s Report 5 Board Members 8 Chief Executive’s Report 9 Management Team 14 Corporate Governance 15 Corporate Services 21 • Corporate Services Review 23 • Finance 26 • Human Resources 30 • Marketing and Communication 37 • Scientific Services 42 • Safety, Health and Environment 56 Operations 63 • Operations Review 64 • New Business Development 68 • Northern Cape Region 74 • North West Region 82 • Free State Region 97 • Project Management Unit 103 Financials 107 • Statement of the Board’s Responsibility 108 • Audit and Risk Committee’s Report 109 • Environmental Protection and Management 110 • Annual Performance Report 112 • Independent Auditor’s Report 116 • Statement of Financial Position 118 • Statement of Comprehensive Income 119 • Statement of Changes in Equity 120 • Statement of Cash Flows 121 • Significant Accounting Policies 122 • Notes to the Financial Statements 139 “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 2014-2015 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 4 AREA OF SUPPLY AREA OF Rustenburg ZF MGCAWU Sedibeng Water - Annual Report 2014-2015 CHAIRPERSON’S REPORT Driven by its vision of Excellence in Water Services Provision, Sedibeng Water has been mandated to provide a full range of water services to improve the quality of life of citizens in a manner that is efficient and that complies fully with all relevant regulatory and policy requirements. The Board of Sedibeng Water is accountable for the leadership and control of the organisation. Its responsibilities include the development, review and monitoring of strategic objectives, the approval of major capital expenditure, risk management and the monitoring of operational and financial performance. In doing so, the Board is committed to nurturing a culture of ethical leadership, integrity and accountability in the organisation. M.D. Dikoko As an organisation that runs its affairs in a Chairperson transparent manner, Sedibeng Water has once again received an unqualified audit report for the As Chairperson of the Board of Sedibeng Water, I 2014/2015 financial year. Apart from illustrating take pride in introducing the organisation’s annual good financial management and efficient report for the 2014/2015 financial year. The content governance, this achievement also highlights a of this report will confirm why Sedibeng Water has steadfast commitment to ensuring the long-term through its sound financial management, good viability, sustainability and growth of the organisation. corporate governance, strategic direction and sufficient capacity and skills competencies, earned A concise summary of achievements related to a rightful place amongst the most progressive water the corporate services and operations functions of utilities in South Africa. Sedibeng Water during the past financial year is provided in the ensuing report by the Chief Executive Sedibeng Water is a statutory Water Board that was of Sedibeng Water. Therefore, I will rather focus established over 3 decades ago. Its head-office briefly on Sedibeng Water’s significant contributions is situated at Balkfontein, just outside Bothaville. towards realising Government’s imperatives related Sedibeng Water currently operates across 3 to the provision of quality water services to all provinces, namely the Free State, North West and communities. Northern Cape. The Board of Sedibeng Water concluded a Sedibeng Water operates within the legislative Shareholder’s Compact with the Minister of Water framework of South Africa. The organisation is and Sanitation for the 2014/2015 financial year. an organ of state that falls under the Department This is because Regulation 29 of the National of Water and Sanitation. The Minister of Water and Treasury Regulations issued in terms of the Sanitation is a sole shareholder. PFMA prescribes that the Accounting Authority for a Public Entity listed in Schedule 3B, must, in “Sustaining the source and flow of life forever” 5 consultation with its Executive Authority, annually Within this context, Sedibeng Water was directed conclude a Shareholder’s Compact which sets out by the Minister of Water and Sanitation to officially the key performance measures and indicators to take over the Pelladrift Water Board in the Northern be achieved over the next five years. As the Board Cape as from 1 October 2014. The Pelladrift Water of Sedibeng Water we are dedicated to honour this Supply Scheme provides water to the towns of agreement. Aggeneys, Pella and Pofadder, as well as mines in the area. This was followed by a second directive In pursuit of realising efficient water services delivery by the Minister concerned to likewise incorporate to communities, Sedibeng Water offers various Botshelo Water in North West into Sedibeng Water’s water related services, expertise and partnerships to operations as from 1 October 2014. Sedibeng local government structures and other stakeholders. Water is now also responsible for providing water Essential services being delivered include technical services to greater parts of the Dr. Ruth S. Mompati services, water and wastewater management, and the whole of the Ngaka Modiri Molema District operations and maintenance, as well as water Municipalities, which were previously served by quality management. Botshelo Water. These takeovers posed unique operational and fiscal challenges to Sedibeng Water, Against this background, the Department of Water but the organisation is set on playing a constructive and Sanitation appointed Sedibeng Water as an part in ensuring the success of Government’s Implementing Agent for a number of multi-million Institutional Reform and Realignment efforts in the rand projects, such as the Mier Kalahari East water services sector in South Africa. Pipeline Project, as well as the upgrading of the Namakwa Regional Water Supply Scheme and the Representatives from the Department of Water and Vaal Gamagara Water Supply Scheme. Sedibeng Sanitation and a delegation from the Netherlands
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