1. PRESENTATION TO PORTFOLIO COMMITTEE ON WATER AFFAIRS AND FORESTRY Silas Mbedzi: Chief Director: Institutional Oversight Trans-Caledon Tunnel Authority [TCTA]; Water Research Commission [WRC] and Inkomati Catchment Management Agency [ICMA] ANNUAL REPORTS FOR 2007/08 24 October 2008

2. 2 TCTA: DWAF’s oversight role DWAF scrutinised TCTA’s AR & assessed the enitity’s performance i.r.o. all its functions against the objectives set out in its Shareholder Compact DWAF evaluated the FS for 2007/08 & provided TCTA with comprehensive comments & questions TCTA responded satisfactorily to the above The Minister noted the content of the AR & approved the tabling thereof in Parliament TCTA’s AR was tabled on 26 Sept 2008 in ATC No 125

3. 3 TCTA: Salient detail from FS 2008 Actual R million 2007 Actual R million % Change Revenue2 0881 9517.02% Net deficit(162)(114)42.11% PPE5 4614 39424.28% Intangible assets13 07313 132-0.45% Long term obligations21 96619 9799.95% Cumulative deficit(3 672)(3 510)4.61% Operating expenses492500-1.60% Net Finance cost1 7591 56512.40%

4. 4 TCTA: Salient detail from FS [2] Unqualified audit Net deficit reflects a shortfall in interest cover, but debt will be repaid over planned repayment period Projected cash flow suggests that business is viable & can continue as a going concern TCTA projects: LHWP – mostly operation & maintenance Berg Water Project – recently completed VRESAP – still under construction Each project is ring-fenced, with no project having cross default implications to another project

5. 5 WRC: DWAF’s oversight role DWAF scrutinised WRC’s AR & evaluated the FS for 2007/08 DWAF provided WRC with comprehensive comments & questions The Minister noted the content of the AR & approved the tabling thereof in Parliament WRC’s AR was tabled on 30 Sept 2008 in ATC No 127 A meeting between DWAF & WRC officials will be held on 31 Oct ’08 to discuss DWAF’s comments

6. 6 WRC: Salient detail from FS Company Performance 2008 Actual R million 2007 Actual R million % Change Revenue1321209% Operating Expenditure1241185% Net surplus151044% Directors’ emoluments6515% PPE2221% Non-current Assets585212% Current Assets104760.3% Capital & Reserves947329% Long liabilities242211% Current liabilities443331%

7. 7 WRC: Salient detail from FS [2] Unqualified audit Income is mainly derived from water research levies (85%) Funds successfully obtained from other local & international sources: R13,3 million 664 students are supported by WRC projects, of whom 65% are from disadvantaged backgrounds

8. 8 WRC: Salient detail from FS [3] Research project funds were distributed among Key Strategic Areas as follows: Water Resource Management34% Water-linked Ecosystems15% Water Use & Waste Management25% Water Utilisation in Agriculture26%

9. 9 ICMA: DWAF’s oversight role DWAF scrutinised ICMA’s AR & assessed the enitity’s performance i.r.o. all its functions against the objectives set out in the Memorandum of Agreement DWAF evaluated and commented on the FS for 2007/08 The Minister noted the content of the AR & approved the tabling thereof in Parliament ICMA’s AR will be tabled at the end of October 2008 A meeting between DWAF and the ICMA will be arranged to discuss DWAF’s comments

10. 10 ICMA: Salient detail from FS 2008 Actual Rand 2007 Actual Rand % Change Revenue18 722 3634 841 637286.7% Operating and Admin Expenses (14 152 278)(4 226 689)234.8% Net Surplus4 547 962601 343656.3% PPE770 560595 87429.3% Current Assets7 326 3772 947 385148.6% Current Liabilities2 820 2692 765 4491.98%

11. 11 ICMA: Salient detail from FS [2] Unqualified audit As a newly established entity the ICMA extensively expanded it’s operations Income is still reflected as grant income as the ICMA has not been delegated the function to bill and collect water use charges A plan of action with time frames needs to be developed on functions and personnel that still have to be transferred to the CMA

12. 12 THE END THANK YOU