Briefing on the performance information 2011/12 annual report Portfolio Committee: Water and Environmental Affairs Briefing on the performance information 2011/12 annual report 10 – 11 October 2012

Contents Part 1: Introduction Part 2: Performance information review Part 3: Human resources

Part 1: introduction

Business definition Item Reference in the annual report Vision Page 11 Mission Values Organisational structure Page 12 Legislative and other mandates Pages 12 – 13 Public entities reporting to the Minister Pages 14 – 16 Ministerial international visits Pages 17 - 18

Goals and Strategic objectives (pages 27 – 28) No Strategic priority Outcomes Strategic objectives 1 Economic growth, rural development, food security and Land Reform 6 (Infrastructure) 7 (Rural dev) 9 (Local gov) To ensure the availability of water supply for economic and domestic use through the development of infrastructure To improve access to water for rural development and productive use To improve access to water for key growth points 2 To promote Sustainable and Equitable Water Resources Management 10 (Environment) Setting a strategic framework for water management in the country To ensure balance of water supply and demand through integrated planning To improve equity in water allocation through regulatory instruments To enhance supply of water To ensure the protection of water resources To improve water use efficiency To improve the management of the water resources

Goals and Strategic objectives (pages 27 – 28) No Strategic priority Outcomes Strategic objectives 3 Strengthening the regulation of the water sector 6 (Infrastructure) 10 (Environment) To improve the regulation of the water sector To improve the water use authorisation To improve the protection of water resources and ensure sustainability 4 Support local government to deliver water services 9 (Local government) Ensure the provision of local government support To broaden access to water services (basic services and eradication of backlog) Contribute to improved International Relations 11 (International) Contribute to the advancement of the African agenda in the global system of governance 5 To contribute to the water agenda in the global system of governance To leverage international resources for the SA water sector

Goals and Strategic objectives (pages 27 – 28) No Strategic priority Outcomes Strategic objectives 6 Build capacity to deliver Quality Services 12 (Public service) To achieve a high performance culture To ensure availability of the right skills To ensure sustainable provision of services To achieve equity in gender and disability To improve corporate governance To improve financial management

Part 2: Performance review

Part 2A: Main Account Non-financial performance review per programme

Programme 1: Administration STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REASONS FOR VARIANCE REFERENCE To achieve a high performance culture 98% of information technology available Table 9 (page 39 – 40) 68% of employees trained in line with the work skills plan Unplanned training not reported and cancellations Automated monitoring and evaluation system developed and implemented Delays: project initiation 95% alignment of the planning process (i.e. strategic and budget plans) Planning still follows budgeting 99.8% (i.e. 5919 of 5932) of signed performance agreements aligned to business plans 7 Suspensions , 7 incapacity leaves, 3 absconded (2 subsequent terminations) 0% of informed and engaged employees, citizen and stakeholders GCIS withdrew and no research was conducted Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Programme 1: Administration STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REASONS FOR VARIANCE REFERENCE Availability of the right skills 24.88% of annual average vacancy rate Additional posts created Table 10 (Page 41) 50 graduate trainees developed 50 graduate trainees placed into candidate positions 687 learnerships implemented Funding received from LGSETA resulting in more 27 internships implemented Funding for only technical; no technical unfunded 100% of HIV/AIDS Programme implemented Rollout in all regions in line with Nat. Health imperatives 42% of women employed Equity stats ignored Table 11 (page 42) 0.31% of people with disabilities employed No focus on disability management 2 projects implemented Delays in consultations Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Programme 1: Administration STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REASONS FOR VARIANCE REFERENCE To improve corporate governance Approved Risk management Framework in place and implemented Table 12 (page 43) 96% implementation of the annual Internal Audit coverage Plan 3 projects delayed To improve financial management 98% reliable asset register Unverified asset and losses under investigation Table 13 83 irregular expenditure cases reported Forensic audit performed from prior years R 40 510 000 of irregular expenditure reported R 58 920 000 has been condoned Qualified audit Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Programme 2: Water Sector Management STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REASONS FOR VARIANCE REFERENCE Setting a strategic framework for water management in the country Status quo on raw water Pricing Strategy developed Initiation delayed Table 14 (page 44 - 45) Water for growth and Development (WfGD) framework finalised Will be completed when NWRS is finalised Discussion document s for NWA, WSA and WRA produced Project plan revised National Water Resources Strategy (NWRS) version 0.5 produced Major scope extension Inception report on Climate Change Strategy Developed - Draft report on institutional realignment Delays in consultations Feasibility study on independent economic water regulator Change of scope Desalination : Strategy developed Re-use: Strategy developed Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Programme 2: Water Sector Management STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REASONS FOR VARIANCE REFERENCE To ensure balance of water supply and demand through integrated planning Bloemfontein and uMzimkhulu catchment reconciliation strategies Table 15 (Page 47) Feasibility plans of phase 2 of Mokolo Crocodile West advanced Pending rollout of energy integrated resource plan To ensure the protection of water resources Crocodile west surface water ecological reserves determined Data discrepancies Table 16 (Page 48) Proposed management classes for Olifants-Doorn river systems to be gazetted Awaiting RQO for Olifants-Doorn Number of water management areas with RQOs established in significant water resources Initiation delayed 2009/10 annual report on status of water quality in dams produced - To improve water use efficiency Draft water consumption targets for 3 irrigation schemes Table 17 (Page 49) Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Programme 2: Water Sector Management STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REASONS FOR VARIANCE REFERENCE To improve the management of the water resources 12 systems (dams and schemes) with established operating rules Table 18 (Page 50) 5 priority catchments monitored 4 monitoring stations constructed Vaal water level high 2 business cases for existing CMAs established Awaiting finalisation of inst. realignment 12 water boards, 2CMAs, TCTA and WRC complying with corporate governance principles and legislation Namakwa was disestablished 2 irrigation boards transformed to WUAs Changes mooted development To broaden access to water services (basic services and eradication of backlog) First order asset register and programme Awaiting strategy approval Table 19 (Page 51) 40 (WSAs) municipalities supported 1224 councillors inducted in water service authorities (WSAs) covering 45 district municipalities Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Programme 4: Regional implementation & Support STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REASONS FOR VARIANCE REFERENCE To ensure the availability of water supply for domestic use through the development of infrastructure 5 bulk infrastructure schemes completed Commissioning problems at Jagersfontein BWS Table 20 (Page 52) Contribution to Economic Growth 4505 cumulative jobs created through regional bulk infrastructure Addiitional projects started Table 21 (Page 53) Water supply for domestic use through the development of infrastructure 4174 additional resource poor farmers with access to water Accelerated progress Table 22 0 irrigation schemes rehabilitated Delays: IA appointment Rural Development and Food Security 598 776 additional people provided with access to water per year Delays in DCoG figures Table 23 (Page 54) 8068 additional rain water harvesting tanks distributed for food production (per year) Additional funding allocation Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Programme 4: Regional implementation & Support STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REASONS FOR VARIANCE REFERENCE To promote Sustainable and Equitable Water Resources Management 4 major rivers rehabilitated 2 rivers are flagship projects Table 24 (Page 54) To improve the regulation of water quality through CME 8 catchments where Waste Discharge Charge System is implemented Delays in the service provider appointments Table 25 (Page 55) To improve water use efficiency 68 municipalities supported in implementing WCWD measures to reduce water losses Interventions from ACIP and Donor funding Table 26 (Page 56) 519 048 335 m3 volume of water saved To improve the regulation of the water sector 14 water resource Institutions regulated as per business plans Delays in finalising the institutional reform Table 27 (Page 57) Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Programme 4: Regional implementation & Support STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REASONS FOR VARIANCE REFERENCE To ensure the provision of local government support 76 municipalities supported to improve compliance with Water Quality Standards Table 28 (page 58) 109 municipalities supported to improve compliance with wastewater Quality Standard Support from the RRU and additional donor funding 52 prioritised municipalities (score < than 30%) with improved Blue Drop scores 59 prioritised municipalities (score < than 30%) with improved Green Drop score 152 municipalities supported to align water services development plans (WSDPs) with integrated development plans (IDPs) This was coordinated from a central point 22 transferred schemes refurbished Differences in LG & Nat Gov. financial years Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Programme 5: Water Sector Regulation STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REASONS FOR VARIANCE REFERENCE To improve access to water for key growth points Inception reports for new water management areas in which Compulsory Licensing has been completed Delays in project initiation Table 29 (Page 59) To improve the regulation of water quality through compliance, monitoring and enforcement 931 Blue Drop municipal assessments completed Complexity in audits Table 30 (Page 60) 821 Green Drop municipal assessments completed 831 waste water supply systems assessed to meet effluent standards per year 86 mines monitored for non-compliance by 2014 Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Programme 6: International Water Cooperation STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REFERENCE African agenda and global engagements Joint decisions: 1 PoA, 1 agreement, 4 joint studies Table 31 (Page 61 - 62) 4 South African positions adopted and incorporated into the SADC water initiatives 2 memoranda of understanding/ Agreements signed in Africa Draft strategic partnership agreement with the Netherlands 2 memoranda of understanding/ Agreements implemented in Africa 1 existing bilateral instruments realigned or expanded per year Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Programme 6: International Water Cooperation STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REASONS FOR VARIANCE REFERENCE African agenda and global engagements 4 water profiles leading to the establishment of country strategies Further analysis and consultation needs to occur for a consolidated strategy Table 31 (Page 62) 3 AMCOW initiatives supported 2 AMCOW meetings convened Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Overall performance on non financial information Programme Achieved Partially achieved Not Achieved On hold No info provided Administration 28.57% (6 of 21) 33.33% 7 of 21 (7 of 21) 4.76% (1 of 21) (0 of 21) Water sector management 44% (11 of 25) 28% 7 of 25 (7 of 25) (0 of 25) Regional implementation and support 58.82% (10 of 17) 17.65% 3 of 17 23.53% (4 of 17) (0 of 17) Water sector regulation 60% (3 of 5) 20% 1 of 5 (1 of 5) (0 of 5) International water cooperation 88.89% (8 of 9) 11.11% 1 of 9 (0 of 9) OVERALL 49.35% (38 of 77) 24.68% (19 of 77) 1.30% (1 of 77) (0 of 77) Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Summary of main account performance

Part 2B: Water Trading Entity Non-financial performance review per programme

Programme 1: Administration STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REASONS FOR VARIANCE REFERENCE To improve financial management 91% complete and accurate asset register Table 32 (Page 64) 9 irregular expenditure cases reported Non compliance to SCM procedures, inadequate enforcement of SCM prescripts R 36 301 256 in irregular expenditure reported 92% billable and registered customers billed accurately 45% cash collected against outstanding debt Disputes in account balances 95% revenue billed against revenue budget Qualified audit Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Programme 3: Water Infrastructure Management STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REASONS FOR VARIANCE REFERENCE To ensure the availability of water supply for economic and domestic use through the development of infrastructure 1. Percentage of project completed as per project plan (project details below) Table 33 (Page 65-66) 86% vs target of 90% for De Hoop Dam Labour disputes 5% vs target of 6% ORWRDP phase 2B-I Delays in awarding contract VRESAP 12% vs target of 13% of Mokolo Site handed to contractor 26% for Komati 10% vs target of 61% for Hazelmere Dam Target was not adjusted 1% for Clanwilliam dam 20% vs 26% for Mooi Mngeni Delay in material delivery 0% vs target of 3% for Nwamitwa and Tzaneen dams Pending decision: record of implementation No draft agreement submitted for approval by both governments of South Africa and Lesotho on LHWP (Page 67) Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Programme 3: Water Infrastructure Management STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REASONS FOR VARIANCE REFERENCE To ensure the availability of water supply for economic and domestic use through the development of infrastructure 2. Percentage of project completed as per project implementation plan (project details below) Table 33 (Page 68) 58% vs target of 79% for Nandoni water treatment works GRP replacement started 20% vs target of 27% for Nandoni pipeline Contracts not yet awarded 91% vs target of 98% for Inyaka water treatment works 93% for Hluhluwe water scheme 0% for Great Letaba distribution EIA approval 75% vs target 94% for Middle Letaba Scope extension Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Programme 3: Water Infrastructure Management STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REASONS FOR VARIANCE REFERENCE To ensure the availability of water supply for economic and domestic use through the development of infrastructure Implementation of the infrastructure maintenance programme Delays in appointing maintenance contract Table 33 (Page 68) Total dam rehabilitation projects in progress (design or construction phase) to reduce maintenance backlogs (DSRP) Targets were incorrectly based on expenditure (Page 69) Number of dam rehabilitation projects completed Delays in procuring PSP services Shortage of internal technical skills Number of Conveyance systems developed Percentage assurance of supply to water user Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Programme 4: Regional Implementation & Support STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REASONS FOR VARIANCE REFERENCE To ensure the availability of water supply for domestic and economic use through the development of infrastructure Number of dams with a safety risk classified Table 34 (Page 70) Number of dams identified for safety risk Number of licences issued to HDIs Demand driven and insufficient info in the applications Table 35 (Page 71) To improve equity in water allocation through regulatory mechanisms Volume of water allocated to historically disadvantaged individuals (HDIs) Table 36 Number of water management areas assessed for compulsory licensing Budget constraints delayed progress To Improve water use efficiency Volume of water loss reduction Properties investigated were using high water volumes Table 37 (Page 72) Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Programme 4: Regional Implementation & Support STRATEGIC OBJECTIVE PERFORMANCE AGAINST INDICATOR REASONS FOR VARIANCE REFERENCE To improve water use authorisation Number of water users authorised This is dependent on license applications Table 39 (Page 73) Number of dams identified per catchment Number of sampling points monitored Some points were inaccessible Table 40 (Page 74) Number of waste discharge points monitored Dependent on the number of received applications Number of waste discharge points authorised Number of mines where pollution inspection is conducted Dependent on reported pollution incidents Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Overall performance on non financial information Programme Achieved Partially achieved Not Achieved On hold No info provided Administration 28.57% (2 of 7) 14.29% (1 of 7) 57.14% (4 of 7) (0 of 7) Water sector management 42.86% (3 of 7) Regional implementation and support 58.33% (7 of 12) 33.33% (4 of 12) 8.33% (1 of 12) (0 of 12) OVERALL 38.46% (10 of 26) 30.77% (8 of 26) (7 of 26) (0 of 26) Achieved Partially Achieved >50% Not Achieved <50% On hold No info provided LEGEND

Summary of water trading entity performance

Details on pages 338 - 343 Part 3: human resources

Human resources: Status by end of period

End