1. 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

2. 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

3. REASONS FOR ESTABLISHING CMAs2.
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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

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

12. 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

13. 13

14. 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

15. 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

16. 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 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 TR
Financial misconduct procedures report TR 16

17. 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

18. 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 %
Fixed Assets
594
909
-34.64%
1,692
444
280.61%
2,286
1,354
68.87%
Current Assets
7,660
222 %
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

19. 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

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

21. 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

22. 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

23. 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

24. THANK YOU 24