PRESENTATION TO PORFOLIO COMMITTEE ON GOVERNANCE MATTERS AT MHLATHUZE WATER 14 June 2017 PRESENTATION TITLE Presented by: Name Surname Directorate Date

Contents Overview of Mhlathuze Water Governance of Mhlathuze Water Progress on the dispute pertaining to the suspended Chief Executive Officer, Mr Atwell Sibusiso Makhanya Roadmap for appointment of the new board

Graphical Area of Supply

Overview of Mhlathuze Water Mhlathuze Water is located in northern KwaZulu-Natal (KZN) and the area of supply covers approximately 37,000km² stretching from uThukela River in the South and up to East Coast to Mozambique and Swaziland borders, around Vryheid and back to the uThukela River. Mhlathuze Water supply Bulk Potable Water and Sanitation services to Industries & Water Services Authorities (WSA) in its area of operation. The operational area covers four WSA’s in KZN: uMkhanyakude District Municipality Zululand District Municipality uThungulu District Municipality uMhlathuze Local Municipality

Governance of Mhlathuze Water Following the findings of the Pietermaritzburg High Court the Minister upheld the judgement and dissolved the Board of Mhlathuze Water on 26 April 2016. According to Section 49(2)(b) of the Public Finance Management Act, 1999 (Act No. 1 of 1999), as amended “If the public entity does not have a controlling body, the chief executive officer or the person in charge of the public entity is the accounting authority for that public entity unless specific legislation applicable to that public entity designates another person as the accounting authority”. In the absence of a Board for Mhlathuze Water, the acting Chief Executive Officer of Mhlathuze Water, Mr Duze was appointed as the Accounting Authority of Mhlathuze Water.

Progress on the dispute pertaining to the suspended Chief Executive Officer, Mr Atwell Sibusiso Makhanya Mr AS Makhanya was suspended by the previous Board of Mhlathuze Water. The new Board of Mhlathuze Water will pass a resolution on instituting disciplinary charges towards Mr AS Makhanya.

Governance of Mhlathuze Water….Cont. The call for nominations for the appointment of new Board Members to serve on the Board of Mhlathuze Water was advertised in the Sunday Times and the Zululand Observer on 30 April 2017 and the closing date for the applications was 15 May 2017. The Department is in the process of appointing a new Board of Mhlathuze Water.

Roadmap for the appointment of the new board The process steps for the appointment of a new Board of Mhlathuze Water that would be appropriate are as follows: Steps Action Timeframe Step 1   Advert calling for nominations of Board Members to serve on the Board of Mhlathuze Water 2017-19. Call for nominations closed on 15 May 2017 30 April 2017 Step2 Appointment of a Selection Panel for the appointment of a new Board of Mhlathuze Water 12 June 2017 Selection Panel to short list potential candidates as Board Members for Mhlathuze Water 20 June 2017 Selection Panel to Interview short listed candidates for the appointment of Board Members of Mhlathuze Water 23 June 207 Step 3 Recommendation by the Selection Panel of suitable candidates to Minister for recommendation to Cabinet for approval 23 June 2017 Security vetting on recommended candidates 26 June 2017 Cabinet Approval 29 June 2017 Step 4 Appointment of a new Board 01 July 2017 Inauguration of the new Board 03 July 2017

Thank You