The Standing Committee on Public Accounts (SCOPA) heard from the Auditor-General yesterday that the Department of Water and Sanitation (DWS) and its entities are losing billions of rands due to poor planning and delays. The Auditor-General was briefing the committee on the 2023/24 audit outcomes and financial performance of the Department of Water Affairs and Sanitation and its entities.
The AG informed SCOPA that a Water Trading Entity (WTE) project worth R2.9 billion is currently delayed. In addition, about 45% of the entity’s projects are delayed. These projects include bulk water pipelines and dam repair projects that are key for sustaining lives and economic development.
In the Eastern Cape, for example, the AG reported on problems with the Mthatha Dam’s outlet pipes, which were first reported for urgent repair in 2011. This call received no qualitative response and the pipes finally burst, leaving the residents of the King Sabata Dalindyebo Municipality without water. As a mitigation measure, the department put emergency plastic pipes in place to secure the movement of water. However, these pipes do not last and residents’ quality of life has deteriorated markedly, the AG reported.
Another of the department’s entities, the Water Research Commission (WRC) has regressed from a clean audit to an unqualified audit with findings and their financial statements were found to have material errors.
The audit outcomes for the WTE, the Trans-Caledon Tunnel Authority (TCTA) and the department all remained stagnant with unqualified findings. The AG cited a R29.7 million rise in fruitless and wasteful expenditure. In addition, there was R39 million in wasted expenditure due to delays at the Hazelmere Dam project in the 2019/20 financial year.
Another loss reported by the AG involved R15.6 million that was spent on repairs that were never done at pump stations in the 2020/21 financial year. In addition, R22.7 million was lost linked to bad procurement decisions at Clanwilliam Dam from 2019/20 to 2021/22 financial years. The AG also reported additional wasteful expenditure arising from delays when workers were paid for doing nothing due to breakdown as a result of lack of manteinance on plant, waiting for proper certification by engineers and a lack of diesel on site.
The AG told SCOPA that the department and its entities are not achieving their mandated purpose. The WTE only completed 39% of planned maintenance projects last year (474 out of 1 224 projects) while the department did not complete any dam safety upgrades. Not one of the planned 10 798 bucket toilets was replaced and only one out of six bulk water supply projects was ready to start.
The Chairperson of SCOPA, Mr Songezo Zibi, said the provision of water and sanitation is one of the aspects the committee will be focusing on in the 7th parliamentary term. He added that water is a basic human right; everyone should have access to clean running water and sanitation and it is also critical for economic development and industrial expansion.
Mr Zibi said the areas highlighted by the AG will be discussed with the Minister of Water and Sanitation, Ms Pammy Majodina, when the committee meets with her next week. Issues for discussion include, among other things, management of large projects that are often delayed with cost overruns, the preparation of financial statements, project and contract management in the bulk water system, and capacitation of the department right across the board.
Faith Ndenze
4 June 2025
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