Presentation to the Portfolio Committee: Water & Environment Catchment Management Agencies (CMAs) Annual Reports for 2009/2010 Summary of all aspects of CMAs Ms Thoko Sigwaza Chief Director: Institutional Oversight 1 1

POLICY AND LEGISLATIVE MANDATE Catchment management agencies are statutory bodies established in terms of Chapter 7 of the National Water Act (Act 36 of 1998) CMAs are subject to the Public Finance Management Act(Act 1 of 1999) (PFMA) and related Treasury regulations– categorized as a Schedule 3A entity: “service delivery public entity” Minister of Water and Environment is the public trustee of the Nation’s water resources and must ensure that water is protected, used, developed, conserved, managed and controlled in a sustainable and equitable manner. 2

REASONS FOR ESTABLISHING CMAs 2. To achieve sustainable use of water 3. To achieve efficient use of water 1. To achieve equitable access to water Delegate water resource management to the regional or catchment level and to involve local communities within the framework of the National Water Resources Strategy 3

THE ROLE OF CMAs Manage water resources in a defined Water Management Area (WMA) A (WMA) is an area established as a management unit in the national water resource strategy within which a catchment management agency will conduct the protection, use development conservation, management and control of water resources Co-ordinate the functions of other institutions involved in water related matters Involve local communities in water resource management 4

THE ROLE OF CMAs Initial Functions in terms of Section 80 of the National Water Act (Act 36 of 1998) Investigate, and advise interested persons on the protection, use, development, conservation, management and control of the water resources in its water management area Develop a catchment management strategy Co-ordinate the related activities of water users, and of water management institutions within its WMA Promote the co-ordination of the implementation of its catchment management strategy with the implementation of any applicable development plan in terms of the Water Services Act (108 of 1997) Promote community participation in its functions 5

Delegated Functions: SCHEDULE 3 To protect use, develop, conserve, manage and control in a sustainable and equitable manner To make rules to regulate water use To install a recording or monitoring device, to establish links with any monitoring or management system to monitor storing, abstraction and use of water; and keep records on the storing, abstraction and use of water To (a) undertake specific alterations to the water work; (b) install a specific device; or demolish, remove or alter the water work If the owner fails to comply with a directive, to – undertake the alterations; install the device; or demolish, remove or alter the water work inoperable, and recover any reasonable costs from the person to whom the directive was issued. 6

limit or prohibit the use of water; To Gazette or by written notice to each of the owners in the area who are likely to be affected – limit or prohibit the use of water; require any person to release stored water under that persons control; prohibit the use of any waterwork; and require specified water conservation measures to be carried out. give preference to the maintenance of the reserve; To give preference to the maintenance of the reserve, to treat all water users on a basis that is fair and reasonable; and consider – the actual extent of the water shortage; the likely effects of the shortage on the water users; the strategic importance of any water use; and 7

THE ROLE OF CMAs Other Powers: Section 34(2) To register an existing lawful Section 35(1) To verify the lawfulness or extent of an existing water use Section 92(1) To establish water user associations 8

PROGRESS TO DATE Six CMAs gazetted (administratively), namely: Crocodile (West)-Marico, Mvoti , Thukela, Usutu to Mhlatuze, Gouritz Olifants-Doorn Two operational CMAs Inkomati (ICMA) Breede-Overberg (BOCMA) 9

Reasons for the delay of establishment of CMAs Learning curve: Stakeholder empowerment and involvement in the establishment of CMAs is more complex in terms of resources required it is an intensive public participation process Capacity: Lack of internal capacity to establish functional ring fenced units to drive the process Financial viability: The start-up costs covered in DWA’s budget, from the parliamentary appropriation underestimated Delegation and transfer of functions not in place therefore seed funding utilised for operational matters DWA must accept responsibility for financially supporting certain strategic and developmental functions of CMAs from the fiscus, with water user charges primarily paying for WRM functions that directly benefit water users Registration and verification processes must be completed to quantify water use charges for viability Institutional Realignment project initiated in 2007 10

Plan to address issues Reconfigure and consolidate CMAs from 19 (NWRS, 2004) to 9 CMAs (see proposed WMA map) 11

WATER MANAGEMENT AREAS OF SOUTH AFRICA MOZAMBIQUE Cape Town Port Elizabeth East London Durban Pretoria Johannesburg Bloemfontein BOTSWANA ZIMBABWE NAMIBIA 1. 2. 8. 9. 10. 11. 12. 13. 15. 16. 18. 19. 17. 14. Provincial Boundaries Water Management Area Boundaries WATER MANAGEMENT AREA LIMPOPO LUVUVHU AND LETABA 3. CROCODILE (WEST) AND MARICO 4. OLIFANTS 5. INKOMATI 6. USUTHU TO MHLATUZE 7. THUKELA UPPER VAAL MIDDLE VAAL LOWER VAAL MVOTI TO UMZIMKULU MZIMVUBU TO KEISKAMMA UPPER ORANGE LOWER ORANGE FISH TO TSITSIKAMMA GOURITZ OLIFANTS/DOORN BREEDE BERG WATER MANAGEMENT AREAS OF SOUTH AFRICA 12

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DWA’s OVERSIGHT ROLE OVER CMAs National Water Act (Act 36 of 1998), Schedule 4 Part 4: Institutional planning outlines the responsibilities of the CMA GB and staff, particularly in terms of the CMA Business Plan, General matters to be included in business plans, which is the main tool for formal oversight, including: Organisational / institutional matters Governance Functions Financial (PFMA) requirements Transformation and HR EE policy, etc (organ of state and must comply) 14

DWA’s OVERSIGHT ROLE OVER CMAs Schedule 4 Part 5 outlines the monitoring and intervention by the Minister Schedule 4 Part 6 outlines records and reports The catchment management strategy provides the mechanism to influence the vision, priorities and direction that the CMA takes. The catchment management strategy is most important instrument for the integrated management of water resources in a Water Management Area as well as an oversight tool for DWA to audit the CMA. 15

DWA’s OVERSIGHT ROLE OVER CMAs Compliance monitoring List of Documents submitted to the Minister Legislation Annual Report & Audited Financial Statements PFMA: Sec 55 (d) Business Plans TR 30.1.1 and Schedule 4 of the National Water Act, 1998 Budget of estimated revenue & expenditure for the year PFMA: Sec 53(1) Quarterly Reports on actual revenue & expenditure for the quarter & projection of expected expenditure & revenue for remainder of financial year TR 26.1 TR 30.2.1 Financial misconduct procedures report TR 33.3.1 16

CHAIRPERSONS AND CHIEF EXECUTIVES CMA CHAIRPERSON CHIEF EXECUTIVE Inkomati Ms TP Nyakane-Maluka Mr B Jackson (Acting) Breede-Overberg MR NH Hamman Mr J van Staden (Acting) CMA ESTABLISHMENT DATES CMA ESTABLISHED AGE Inkomati 2004 7 years Breede-Overberg 2005 6 years 17

CONSOLIDATED FINANCIAL PERFORMANCE ICMA AND BOCMA   ICMA BOCMA CONSOLIDATED MAR 10 MAR 09 %Inc(-Dec) Grant income 20,958 26,710 -21.53% 11,000 2,600 323.08% 31,958 29,310 9.04% Total expenses 13,470 33,146 -59.36% 7,614 1,709 345.40% 21,084 34,855 -39.51% Salaries & wages 8,257 9,434 -12.48% 3,482 613 467.77% 11,739 10,047 16.83% Net income 7,432 -6,476 3,714 926 300.98% 11,146 -5,550 -300.84% Fixed Assets 594 909 -34.64% 1,692 444 280.61% 2,286 1,354 68.87% Current Assets 7,660 222 3354.78% 3,563 853 317.79% 11,223 1,074 944.49% Current Liabilities 2,146 2,390 -10.20% 614 371 65.53% 2,760 2,761 -0.03% Long term debt 35 98 -64.57% Accumulated reserves 6,105 -1,327 4,640 400.98% 10,746 -400 18

Strategic alignment with government objectives : No Outcome DWA priority CMAs Contribution 4 Employment 1) Economic Growth Rural Development Food Security Land Reform 3) Strengthening regulation 30 new jobs created Skills development by offering bursaries, internship and permanent employment to disadvantaged students 7 Rural development Developmental projects, capacity building and empowerment programmes, Boards representative of HDIs 9 Local Government 4) Local Government to deliver water services Building legitimacy by establishing relationships with district and local municipalities (Signing of Memorandum of Understanding) Alignment of CMS with IDPs and WSDPs 10 Environment Promote sustainable and equitable WRM Developed CMS for the management of WRM 12 Public service 6) Build capacity to deliver quality services Manage water resources and ensure equitable access. Capacitate HDIs in WRM issues Established forums at local levels to serve people better Encourages democracy by having all local stakeholder groupings represented on the Boards Mentoring programme for HDIs represented on Boards 19

AUDITED REPORTS OF CMAs 2009/10 2008/9 COMMENT Inkomati Unqualified No change Breede-Overberg 20

ACHIEVEMENTS The completion of Catchment Management Strategies Engagements with Irrigation Boards for transformation into Water User Associations. Alignment of DWA Regional Office strategic plan with the CMAs. Building institutional relationships with key institutional partners and aligning plans, e.g. IDPs and WSDPs Engagement and promotion of community participation in the protection, use, development, conservation, management and control of the water resources. Twinning with the Dutch catchment management agencies. 21

ACHIEVEMENTS CONTINUED... The ICMA and BOCMA have started to perform functions as delegated by DWA in December 2010 The implementation of the delegated functions will provide the CMAs with the opportunity to start generating revenue 22

CHALLENGES AND WAY FORWARD CMS approved for gazetting Alignment with NWRS Transfer of staff from DWA to CMAs Agreement on timeframes and the signing of the Memorandum of Agreement between DWA Regional Offices and CMAs for the transfer of staff Financial sustainability DWA support in setting up CMA systems to enable billing for revenue collection 23

THANK YOU 24