BRIEFING TO THE PORTFOLIO COMMITTEE ON WATER AND SANITATION ON THE ANNUAL PERFORMANCE OF THE INKOMATI-USUTHU AND BREEDE-GOURITZ CATCHMENT MANAGEMENT AGENCIES IN THE 2015/16 FINANCIAL YEAR Presented by: Anil Singh Deputy Director Water Sector Regulation 19 October 2016 PRESENTATION TITLE Presented by: Name Surname Directorate Date

CONTENTS Policy and legislative mandate Overview of CMAs CMAs functional analysis Progress in CMA establishment Summary of IUCMA and BGCMA performance Highlights Risks

POLICY AND LEGISLATIVE MANDATES Policy & Legislation Description White Paper on Water & Sanitation, 1997 Recognised a need for CMAs .for decentralised water resource management National Water Act 36 of 1998 Give Minister the powers to establish and disestablish CMAs and outline the procedure for appointing Board members as set out in chapter 8 and schedule 4 of NWA Public Finance Management Act , Act No.1 of 1999 National Public Entities listed as Schedule 3A under PFMA. National Water Resource Strategy-2 Chapter 8 on Water Management Institutions including plan to establish 9 CMAs and Regional Water Utilities Raw Water Pricing Strategy, 2007 Defines Water Resource Management functions to be charged to users and funding framework for CMAs. National Development Plan, 2012 9 CMAs to be established nationally

OVERVIEW OF CMAS Catchment Management Agencies (CMAs) are established in terms the National Water Act, Act 36 of 108 of 1998 (Chapter 7) Nine CMAs are to be established nationally CMAs are subject to the Public Finance Management Act (PFMA) and related Treasury regulations– categorized as a Schedule 3A entity: “service delivery public entity” The purpose of the CMA is to delegate water resource management to the catchment level and to involve local communities in the decision-making processes.

Water Management Areas Olifants Limpopo Inkomati- Usuthu Vaal Pongola-Mzimkulu Orange Mzimvubu-Tsitsikamma Berg-Olifants Breede-Gouritz

CMA MANDATE AND FUNCTIONAL ANALYSIS Catchment management strategy Audit within WMA RDM* Business plan Physical implementation Water use regulation WCDM projects Registration Authorize water use* Flood & drought management Dam safety* WR rehabilitation Billing & collection Enforce compliance Institutional support Provide technical support Coordinate activities Participatory bodies Intervene Build capacity Information manangement Information generation & dissemination Data storage and management Data acquisition Support for knowledge products Assessment & evaluation

CMA ESTABLISHMENT PROGRESS PHASES NAME OF THE CMA STATUS OF CMA Phase 1: 2012-2013 Inkomati-Usuthu Gazetted the CMA for establishment, board and CEO appointed Breede-Gouritz Gazetted the CMA for establishment, selection panel appointed to recommend board Pongola-Umzimkulu Gazetted the CMA for establishment, functions ring fenced, Acting CEO appointed Phase 2: 2014-2015 Limpopo-North West Olifants Vaal Berg-Olifants Gazetted the CMA for public comments, functions ring fenced, Acting CEO appointed Phase 3: 2015-2016 Mzimvubu-Tsitsikamma Gazetted the CMA for public comments, functions ring fenced, Acting CEO appointed. Submission completed for approval of gazetting for establishment Orange

SUMMARY OF IUCMA AND BGCMA PERFORMANCE

IUCMA Vision: Water for all in the Inkomati-Usuthu water management area Mission: a pioneering catchment management system that empowers stakeholders to engage in consensual and adaptive decision making, to achieve reform, and to promote persistent social, economic and environmental justice across the Inkomati-Usuthu Strategic objectives:  Ensure Effective, Efficient and Sustainable Management of Water Resources; Ensure Collaborative and Co-ordinated IWRM for Wise Socio-Economic Development; Promote and Pursue an International Developmental Agenda; Promote Knowledge Generation and Distribution; and Ensure Effective and Efficient Management of IUCMA Resources Social and developmental role initiatives

ALIGNMENT AND CONTRIBUTION TO GOVERNMENT & DEPARTMENTAL STRATEGIC OBJECTIVES STRATEGIC OUTCOME ORIENTED GOALS GOVERNMENT OUTCOMES AND OTHER INITIATIVES DEPARTMENT OF WATER SANITATION OBJECTIVES IUCMA PROGRAMMES An efficient, effective and development oriented sector leader Outcome 12 (Public service) Outcome 4 (Employment) Chapter 13 of the NDP Building skills pool and competencies Promote knowledge generation and distribution Effective and efficient internal control environment Ensure effective and efficient management of resources Implement programmes that create job opportunities Ensure collaborative and coordinated IWRM for wise socio-economic development Equitable and sustainable water and sanitation services Outcome 6 (Infrastructure) Chapter 4 of the NDP Increased sustainability in water provision Ensure effective, efficient and sustainable management of water resources Enhanced provision of basic sanitation Equitable water allocation Improved water use efficiency

ALIGNMENT AND CONTRIBUTION TO GOVERNMENT & DEPARTMENTAL STRATEGIC OBJECTIVES (Cont.) STRATEGIC OUTCOME ORIENTED GOALS GOVERNMENT OUTCOMES AND OTHER INITIATIVES DEPARTMENT OF WATER SANITATION OBJECTIVES IUCMA PROGRAMMES Protection of water across the value chain Outcome 9 (Local government) Chapter 13 of the NDP Outcome 10 (Environment) Chapter 5 of the NDP Strategies for water and sanitation management Enhanced regulatory compliance Ensure effective, efficient and sustainable management of water resources Increased water ecosystem health Management of water and sanitation information

IUCMA AREA OF OPERATION

THE IUCMA KEY ACHIEVEMENTS Sub-Programme Indicator 2015/16 Target Achievements Water use Number of water quality related authorisations issued 10 authorisations issued 14 authorisations issued Percentage of temporary transfers processed in terms of section25(1) of NWA 100% of applications processed 0% as no applications received Number of General Authorisations confirmed 100% 100% (4) confirmations Water quality Number of samples taken to monitor water quality 2712 samples taken 2797 samples taken Number of water quality inspection reports 292 water quality inspection reports 285 water quality inspection reports Number of catchments monitored for river health 1 Usuthu catchment Percentage of reported/identified pollution incidents attended to 100% of all pollution incidents attended to 100% (19) of all reported pollution incidents attended to Number of water quality status reports disseminated 37

THE IUCMA KEY ACHIEVEMENTS Sub-Programme Indicator 2015/16 Target Achievements Water allocation reform Percentage of water users verified in Inkomati catchment 80% 75% verified Percentage water users validated in Usuthu catchment 25% 0% validations Number of decision support system developed 3 1 completed Compliance and enforcement Number of water quality and illegal water use inspections 292 inspections 285 inspections conducted Number of compliance audits 8 9 audits completed Percentage of notices issued to non-compliant users 100% 100% (55) notices issued Percentage of directives issued to non-compliant users 100% (34) directives issued Percentage of criminal cases opened against unlawful users and polluters 100% (2)

SUMMARY OF IUCMA PERFORMANCE SUB-PROGRAMME INDICATORS 2015/16 TARGETS Achievements Stakeholder empowerment and interactions Number of stakeholder empowerment sessions conducted 28 sessions 39 empowerment sessions held Number of stakeholder interactions 48 interactions 45 interactions held Strategic support Compliance to all planning and reporting prescripts 100% compliance Governance Compliance to governance requirements

FINANCIAL PERFORMANCE   2016 (R) 2015 (R) Revenue 65,336,603 54,116,905 Other income 91,211 114,472 Operating expenses (65,347,872) (49,458,304) Operating surplus (deficit) 79,942 4,773,073 Investment revenue 1,502,405 734,241 Surplus (deficit) for the year 5,452,068

EXECUTIVES PERFORMANCE BONUSES Chief Executive Officer 171 382.32 84 695 Chief Financial Officer 97 158.00

HUMAN RESOURCES Total number of staff Male Female Disabled Staff turnover 62 36 27 Employment Equity African=31 White=5 Coloured=0 Indian=0 African=25 White=1 Coloured=1 African=0 White=0

BGCMA Vision: quality water for all, forever in the Breede-Gouritz Water Management Area. Mission: to manage water resources responsibly, through the continuous engagement with all stakeholders, and to devolve decision-making to the lowest level for the benefit of all water users in the Breede-Gouritz Catchment, including the environment Strategic objectives: Water resources planning and information Water use management Institutional development Water allocation reform Resource protection Strategic support, which includes finance, human resources and administration Management and governance Social and developmental role initiatives

ALIGNMENT AND CONTRIBUTION TO GOVERNMENT & DEPARTMENTAL STRATEGIC OBJECTIVES STRATEGIC OUTCOME ORIENTED GOALS GOVERNMENT OUTCOMES AND OTHER INITIATIVES DEPARTMENT OF WATER SANITATION STRATEGIC OBJECTIVES BREEDE-GOURITZ CMA PROGRAMMES An efficient, effective and development oriented sector leader Outcome 12 (Public service) Outcome 4 (Employment) Chapter 13 of the NDP Building skills pool and competencies Strategic support Effective and efficient internal control environment Management and Governance Implement programmes that create job opportunities Water Use Management Equitable and sustainable water and sanitation services Outcome 6 (Infrastructure) Chapter 4 of the NDP Increased sustainability in water provision Water Resource Planning Enhanced provision of basic sanitation Equitable water allocation Water Allocation Reform Improved water use efficiency Protection of water across the value chain Outcome 9 (Local government) Outcome 10 (Environment) Chapter 5 of the NDP Strategies for water and sanitation management Water Resource Management Enhanced regulatory compliance Increased water ecosystem health Management of water and sanitation information Information System

BGCMA AREA OF OPERATION

THE BGCMA KEY ACHIEVEMENTS Sub-Programme Indicator 2015/16 Target Achievements Water use Number of water quality related authorisations issued 80% authorisations finalised 80% (6) authorisations finalised Percentage of water use registrations finalised 70% of registrations finalised 66% (488) registrations finalised Number of General Authorisations confirmed 100% 100% (41) confirmations Number of audit reports completed for water use compliance 60 audits 65 audits completed Water quality Number of samples taken to monitor water quality 72 samples taken 113 samples taken Number of water quality objectives reports completed 2 reports 2 water quality reports completed Number of river rehabilitation projects supported 4 in Breede River 4 projects completed in Breede River

THE BGCMA KEY ACHIEVEMENTS Sub-Programme Indicator 2015/16 Target Achievements Water quality Percentage of reported/identified pollution incidents attended to 100% of all pollution incidents attended to 100% (21) of all reported pollution incidents attended to Percentage of reported non-compliance cases dealt with 100% 100% (25) Water allocation reform Number of validation and verification confirmation letters sent 150 letters 250 letters Percentage of RPF technically assisted with water use 100% (39) RPF technically assisted Number of RPF assisted with completing forms for subsidies 30 30 RPF assisted to complete forms

SUMMARY OF BGCMA PERFORMANCE SUB-PROGRAMME INDICATORS 2015/16 TARGETS Achievements Stakeholder empowerment and interactions Number of stakeholder interactions 18 interactions 39 interactions completed Number of learners reached during water week campaign 3000 learners 7994 learners reached Number of social responsibility projects supported 10 project 10 projects completed Strategic support Compliance to all planning and reporting prescripts 100% compliance Governance Compliance to governance requirements

FINANCIAL PERFORMANCE   2016 (R) 2015 (R) Revenue 23 365 608 40 787 311 Other income 326 849 1 364 Operating expenses (38 383 853) (24 250 617) Operating surplus (deficit) (14 691 396) 16 538 058 Investment revenue 1 071 340 277 952 Surplus (deficit) for the year (13 620 056) 16 816 010

EXECUTIVES PERFORMANCE BONUSES Chief Executive Officer 47 259 47 258 Chief Financial Officer 17 388 12 848 Senior Manager Water Resource Management

HUMAN RESOURCES Total number of staff Male Female Disabled Staff turnover 46 14 32 1 Employment Equity African=7 White=3 Coloured=4 Indian=0 African=23 Coloured=6 African=1 White=0 Coloured=0

HIGHLIGHTS Both CMAs received unqualified audit reports Hydronet water control room went live in March providing IUCMA real time satellite rainfall data The forum for the CEOs and Acting CEOs of CMAs and Proto-CMAs established and convenes every quarter Improved cooperation with the municipalities to address water quality issues Cooperation with neighbouring countries Participated in REMCO (River and Environmental Management Cooperation) trans-boundary water resource management conference

RISKS The drought impacted negatively on planning and service delivery activities Revenue management could be impacted if the rollout of SAP is not smooth Difficult to attract appropriate skills

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