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The Portfolio Committee on Water and Sanitation has welcomed the improved performance of two water boards, Lepelle Northern Water and Overberg Water, but cautioned that misalignment within the water value chain continues to result in communities experiencing dry taps.

The committee is currently undertaking a process of considering the annual reports of all water boards and received briefings from Lepelle Northern Water and Overberg Water. While the committee commended the improving governance and operational performance of both entities, it noted that the lived experiences of end users in the areas where these boards operate often paint a contrary picture to the positive performance outcomes reported.

“The good performance by the water boards is a direct representation of a fractured system, where improvements in the performance of the water boards do not translate into direct positive outcomes for communities. In a fully functional system, improvements in the performance of the water boards would lead to a tangible improvement in water access for the people,” said Mr Leon Basson, the Chairperson of the committee.

Municipalities, which are a critical role player in the water value chain, continue to exert downward pressure on the system through high levels of non-revenue water within municipal reticulation systems and the persistent non-payment for bulk water services supplied by the water boards. These challenges pose a significant risk to the financial sustainability of water boards.

The committee continues to urge a collaborative approach between the Department of Water and Sanitation and the Department of Cooperative Governance and Traditional Affairs to ensure comprehensive alignment across the water value chain and to safeguard access to water as a foundation for socio-economic development.

Regarding Lepelle Northern Water, the committee welcomed the improvement in governance and operational performance. The entity achieved an overall performance rate of 90% against its planned targets. Considering the governance and operational challenges experienced in previous financial years, the committee encouraged the board and senior management to continue prioritising liquidity and the overall financial health of the entity.

While revenue collection has improved by 11%, the committee remains concerned about the impact of municipal debt on the financial sustainability of the entity. Municipal debt owed to Lepelle Northern Water has increased to R1.36 billion, which remains a serious concern. The committee reiterated that municipal debt to water boards is a matter requiring urgent attention to ensure the sustainability of both the water boards and the broader water supply system.

Regarding Overberg Water, the committee emphasised the need for the entity to develop a clear growth strategy to expand its revenue base and ensure long-term sustainability. The committee welcomed several initiatives aimed at improving revenue generation, including plans to secure additional industrial customers and farmers, as well as the management of wastewater treatment works on behalf of municipalities and commercial clients.

The committee also noted positively the clean audit outcome achieved by Overberg Water. It remains the committee's view that sound governance and strong financial management form a critical foundation for institutional effectiveness and service delivery.

Meanwhile, the committee resolved, following legal advice, to give the National Economic Development and Labour Council 14 days to make a submission on the Water Services Amendment Bill [B24 – 2025], following a request by NEDLAC for the committee to allow the Department of Water and Sanitation and Nedlac sufficient time to engage on the Bill. The committee is of the view that the three months requested by NEDLAC is not practical and would unreasonably delay the consideration of the Bill.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.

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The portfolio committees on Agriculture and on Forestry, Fisheries and Environment received briefings from the departments of Agriculture; Land Reform and Rural Development; and Forestry, Fisheries and Environment (DFFE) on the dredging in the Mfolozi and Msunduzi flats and the opening of the St Lucia estuary mouth. Thereafter, the Portfolio Committee on Agriculture received its weekly update from the Department of Agriculture on the foot-and-mouth disease (FMD) outbreak and interventions to control the spread of the disease.

The committees heard from iSimangaliso Wetland Park that the application for authorisation to dredge was made in April 2023. However, the DFFE refused the application due to insufficient information to allow for a decision to be made. iSimangaliso then commissioned a basic assessment in June 2023 with field work and specialist studies initiated on sedimentation, hydrology and ecology.

An application for a basic assessment report (BAR) was submitted in February 2024 and thereafter the amended BAR was submitted in July 2024. In October 2024, the DFFE refused this amended application and iSimangaliso lodged an appeal in November 2024. In February 2025, the Forestry, Fisheries and Environment Minister set aside the environmental authorisation (EA) refusal and indicated that iSimangaliso must collaborate to find a solution that applies to both the DFFE and the iSimangaliso Wetland Park.

iSimangaliso consulted with the communities, research and science bodies, government departments and industry stakeholders, and an intergovernmental task team was formed. Thereafter, the EA was approved in February 2026. The committees heard that the successful implementation of the environmental authorisation will be achieved through continued collaboration with all stakeholders throughout the project lifecycle. Dredging and vegetation removal will be implemented strictly in accordance with the EA, the environmental management programme and maintenance management plan with compliance monitored and enforced at every phase.

The committee also heard that one of the service provider for the assessment absconded with the data and the Chairperson of the Agriculture portfolio committee, Ms Dina Pule, noted that this service provider should be blacklisted to prevent it working with any government department again. She also said that where farming land is affected during the dredging, alternate suitable land for farming should be found for these farming communities, especially during times of flooding.

The Chairperson of the Portfolio Committee on Forestry, Fisheries and Environment, Ms Nqabisa Gantsho, said that the St Lucia lake system requires a careful balancing of conservation objectives with the livelihoods of communities dependent on tourism, small-scale fishing and commercial farming, each of which has legitimate and often competing interests. The sustainable and equitable future for the system rests on collaboration, transparency, meaningful consultations and the integration of science with lived community experience. It is unacceptable that data was lost when a service provider disappeared because this is basic contract management. This should not happen again, and preventative details should form part of the next briefing with the committees.

Ms Pule further said that the committee welcomes the assurance that the proposed dredging, silt and vegetation removal will have limited impact. She added that efforts should be made to prevent unintended consequences, such as a freshwater or high salinity estuary, which would affect various animal species and people who depend on the lack system for their livelihoods.

The committees will schedule a joint follow-up meeting for an update on timelines, recommendations from High Level Panel and impact monitoring in line with the environmental authorisation that iSimangaliso secured.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.