Water and Sanitation Portfolio Committee PORTFOLIO COMMITTEE BRIEFING ON THE ANNUAL PERFORMANCE PLAN AND BUDGET VOTE Water and Sanitation Portfolio Committee V227, 2nd Second Floor 25 May 2017 PRESENTATION TITLE Presented by: Name Surname Directorate Date

TABLE OF CONTENTS DWS AND TREASURY ENGAGEMENTS REVISED BUDGET VS ANNUAL PERFORMANCE PLAN DEBT OWED TO SEDIBENG DETAILS OF SUPPLIERS OWED DEBT OWED TO WATER BOARDS

DWS AND TREASURY ENGAGEMENTS PFMA and Treasury Regulations set out the powers of the Accounting Officer to shift funds within the department’s voted allocation for 2017/18 Various engagements took place between DWS and Treasury officials as well as the Executive Level Therefore, funds have been reprioritised in line with the above provisions. Refer to correspondence from Treasury (Annexure A)

REVISED BUDGET VS ANNUAL PERFORMANCE PLAN DWS will not be revising budget allocations because the shortfall relates to RBIG Projects which are multiyear projects Some of the RBIG projects that were earmarked for funding in the 2017/18 FY were completed earlier than planned. The amount owed to contractors as at 31 March 2017 amount to R1 ,463 billion This debt relates to the following: R1 ,342 billion relates to RBIG Programme R120 897 124 relates to goods and services which were not project related

REVISED BUDGET VS ANNUAL PERFORMANCE PLAN RBIG has a total budget of R5.8bn in the current FY and the debt of R1.463 billion will be absorbed from within this allocation

DETAILS OF SUPPLIERS OWED A detailed lest per province and for Head office is provided (Refer to Annexure B)

OUTSTANDING DEBT TO SEDIBENG WATER Sedibeng Water owes WTE R1.7billion and in turn Sedibeng Water is owed R2.8billion by various municipalities(Refer to Annexure C) Rand Water is owed R52m by Bushbuckridge Municipality For the rest of the Water Boards the debt owed is within 30 Days and they are paying WTE monthly

WTE OVERDRAFT AGREEMENT WTE will reduce the overdraft as follows: R200m by end of June 2017 R548m by end of March 2018 (Refer to Annexure D) No interest has been charged on the WTE Overdraft to date and none will be charged in the future (Refer to Annexure E)

WSIG AND ACIP GRANT REPRIORITISATION No existing project will be affected by reprioritising ACIP and WSIG On a yearly basis the department earmarks funds to intervene in non-functioning municipalities R587m from WSIG and R214m from ACIP will be reprioritised

WSIG AND ACIP GRANT REPRIORITISATION The department is working collaboratively with National treasury , Cogta and Misa to align the different grants that are there for delivery of water and sanitation programme, especially where there is Bulk infrastructure and no reticulation Tripartite agreements will be signed to ensure that we operate in a more coordinated manner

BUCKET ERADICATION PROGRAMME The Bulk Infrastructure will be de-linked from the Bucket Eradication Programme The department is working closely with the WRC to finds alternative innovative solutions that will reduce the costs of providing dignified sanitation solutions

THANK YOU!