Lindiwe Sisulu says ‘no instability’ at some of SA’s cash-strapped water boards



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Minister of Human Settlements, Water and Sanitation, Lindiwe Sisulu.

Minister of Human Settlements, Water and Sanitation, Lindiwe Sisulu.

  • The Minister of Human Settlements, Water and Sanitation, Lindiwe Sisulu, says there is no instability in some of the country’s water boards with liquidity problems.
  • During this fiscal year, the water boards of Sedibeng Water, Amatola Water and Umgeni Water, have already been dissolved.
  • In November last year, Sisulu announced a 600 million rand lifeline for distressed water tables to stay afloat amid cash shortages exacerbated by the Covid-19 pandemic.

Amid cash restrictions, financial mismanagement and investigations into questionable tenders, Human Settlements, Water and Sanitation Minister Lindiwe Sisulu says she is unaware of any instability at some of the country’s embattled water boards.

Sisulu has revealed that three water boards, Sedibeng Water, Amatola Water and Umgeni Water, were dissolved during the current financial year.

READ | Umgeni Water CEO resigns with immediate effect

The details were contained in her response to a written parliamentary question from EFF MP Mathibe Rebecca Mohlala, who wanted details on the situation at the water authorities.

“The process of appointing the boards of these water entities is underway. I am not aware of any instability in the water boards,” he said.

However, the Sisulu department intervened in all three water boards where corruption and mismanagement have been rife.

In November last year, Sisulu announced a 600 million rand lifeline for distressed water tables to stay afloat amid cash shortages exacerbated by the Covid-19 pandemic.

The department had also not imposed an increase in bulk water rates imposed on all water boards for the 2020-2021 financial year.

This was done to reduce the financial burden on the worst affected consumers.

One of the hardest hit water boards, with respect to instability and cash shortages, is the Amathole Water Board in the Eastern Cape.

The Amathole District Municipality owes him R173 million.

Last week, the municipality announced that it would not pay salaries to 1,670 workers, including councilors and traditional leaders, due to limited financial resources.

It has also been revealed that the municipality hired more than 900 people who were not needed from 2013 to 2018, resulting in a bloated organization chart and an unaffordable salary bill.

Of these, 500 were hired in a single month in 2013 in what the municipality called mass employment.

In October, Umgeni Water CEO Thamsanqa Hlongwa resigned with immediate effect.

No reason was given for the sudden resignation of Hlongwa, who was appointed in 2017.

READ ALSO | Lifestyle audits, forensic investigation as Umgeni Water cracks down on tenders

In November, City Press reported that the newly appointed board chairwoman Magasela Mzobi took several steps to change the KwaZulu-Natal-based water board.

Following a series of tender-related litigation, the water authority commissioned a forensic investigation into the management of its supply chain.

Employees were also subjected to lifestyle audits.

President Cyril Ramaphosa authorized an investigation of the Umgeni Water board for possible “unauthorized, irregular, fruitless or wasteful spending” related to various matters.

Meanwhile, Sisulu said the Special Investigation Unit (SIU) investigation into the various boards is not a duplication of the investigation that investigation advocate Terry Motau is leading into fraud and corruption at the water boards.

“The terms of reference of the referred person are specific and indicate that those cases investigated by the SIU will not be included in its scope of work,” he said.

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