National Water Resources Infrastructure Agency SOC Limited Bill: adoption; Water & Sanitation Legacy Report

Meeting report

The Committee Chairperson was absent and could not be reached, so Members agreed to elect an Acting Chairperson to stand in, enabling the Committee to move forward with its work. Ms M Matuba (ANC) proposed Ms G Tseke (ANC) and Mr L Basson (DA) seconded the proposal.

Ms N Sihlwayi (ANC) sent in an apology as she was ill.

Chairperson Tseke welcomed the delegation from the Department of Water and Sanitation.
 
The first item on the Committee’s agenda was to request consideration and adoption of the National Water Resources Infrastructure Agency SOC Limited Bill (NWRIA).

SA National Water Resources Infrastructure SOC Agency Limited Bill [B24B-2023]
Ms Phumelele Ngema, parliamentary legal adviser, said the purpose of the meeting was to adopt the B-version of the legislation which incorporated all suggested amendments.

Ms Ngema said the Department would go through the clauses with Members who would then decide to adopt it as a whole or not.

The Acting Chairperson confirmed it was the B-version, likely the final version for tabling in Parliament and said it was the last stage before the Bill's adoption.

The Committee was comfortable with the overall objectives and certain sections of the Bill but emphasised the importance of addressing affected clauses before proceeding. Ms Matuba suggested focusing on clauses which were previously discussed for example, if discussions revolved around Clause 5 or Clause 11, the Committee should address those first and determine how the clauses were affected.

Clause 1
Ms Ngema noted corrections related to the omission and rejection of Clause 5 and adjustments to waterworks definitions to align with existing legislation. The Committee had previously accepted these changes.

Clause 3
In this clause, Ms Ngema outlined a clean-up, removing references to shareholding in the agency establishment and saying shares would be solely held by the Minister.

Clauses 5, 7, 8, 9
She explained changes in Clauses 5, 7, 8, and 9, which involved adjustments to board appointments, functions of the Agency, and provisions for an interim code of conduct for new board members.

Clause 11
On Clause 11, Ms Ngema detailed the process of the Nominations Committee to select qualified board members, touching on Clause 9, which addressed ‘Not wasteful expenditure’ and ‘Appointments to the Board’.

Clauses 14, 15, 17, 20, 22, 24, 27, 31, 34, 35, 38, 48
Further changes to Clauses 14, 15, 17, 20, 22, 24, 27, 31, 34, 35, 38, and 48 were aimed at correcting cross-referencing, addressing oversight roles, and ensuring alignment with the rejected Clause 5.

Ms Ngema suggested proceeding directly to the B-Bill as the presented changes had already been incorporated into it. It was no longer the Bill initially introduced by the Minister; it was now referred to as the South African National Water Resources Infrastructure Agency SOC Limited Bill (SANWRIA), as agreed upon by the Portfolio Committee on Water and Sanitation.

With its incorporated changes, it was in alignment with the committee report. This version of the Bill would be submitted to the National Assembly for a second reading.

The Committee requested that references to the Companies Act be removed. Ms Ngema confirmed the changes and corrections were implemented, including an adjustment of the Commencement and Short Title to reflect the correct year of introduction.

In conclusion, she confirmed the B Bill version was ready for Members' consideration and adoption in accordance with the rules of Parliament.

Discussion
The Acting Chairperson thanked Ms Ngema for her work and dedication throughout the process extending appreciation to the legal advisors from the Department. She acknowledged the collaborative effort of Members of Parliament, recognising contributions which led the process to this point emphasising that the Bill was a collective effort representing the legacy of the sixth parliamentary administration.

Members of the Committee were invited by the Acting Chairperson to provide final input or to proceed with adopting the Bill, accepting it as a true reflection of Committee discussions in previous meetings.

Mr G Hendricks (Al Jama-ah) voiced his uncertainty about removing provisions related to the Companies Act. Parliament had to ensure accountability and he shared his concerns about the situation in Johannesburg, where there was a lack of consequence management which resulted in water shortages, political distress, and chaos for the party he represented. Citizens had a right to access water, and additional measures ensuring accountability, such as those provided in the Companies Act, were necessary to protect this right.

The Acting Chairperson referred Mr Hendricks to the sections in the Bill addressing the Companies Act and the Public Finance Management Act (PFMA) asking if he was agreeing or raising concerns.

Adoption of the Bill
Ms Matuba confirmed the ANC supports the Bill as it is.

Mr Basson (DA) said in its current form the Democratic Alliance would not support the Bill.

Ms R Mohlala (EFF) said the Economic Freedom Fighters would abstain from voting on the Bill.

Mr R Mashego (ANC), who had arrived earlier, expressed his support for the Bill.

The Bill was adopted and the Acting Chairperson said it would be put forward for consideration in the Announcements, Tablings, and Committee Reports (ATC) and debated in the National Assembly the following week.

Sixth Parliament Final Draft Legacy Report
Ms Shereen Dawood, Committee Content Advisor, provided an overview of the Draft Report submitted to the Members. She highlighted sections revised or amended based on previous discussions. The Report aimed to provide clear context and detail key findings and recommendations including sections on challenges in the Water and Sanitation sector, key areas for future work, departmental and entity overviews, challenges encountered, and audit findings. Thematic sections such as sustainability, transformation, institutional capacity, pollution, and infrastructure development were also covered.

The Report went through oversight visits, briefings, public hearings, audit findings, petitions received, outstanding issues, and recommendations to the Minister and other stakeholders. Irregular expenditure, improving debt management, and strengthening internal controls had to be addressed.
Recommendations for the Seventh Parliament, included the need for systematic mechanisms to address issues, enhanced training for committee members and staff, and regular strategic planning sessions.

Discussion
The Chairperson considered the detail of the Report which covered the Committee's activities since 2019 and reflected on it, representing the Committee's agreements, disagreements, and recommendations, providing valuable information for the Seventh Parliament to continue its work. He invited Members to raise comments or questions regarding it.

Mr Hendricks emphasised the need for stronger consequence management, saying it insulted the Committee for the Department to be involved in talks about improving this aspect but not implementing mechanisms to ensure the same. Officials had to be held accountable through disciplinary action as legal consequences should be pursued to deal with the challenges in water and sanitation.

He acknowledged that the Minister and Deputy Minister had made improvements but felt there was still a long way to go because of the lack of significant action against officials who contributed to the problems that Al Jama-ah, the party he represented, had to deal with.

Ms Matuba raised concerns about inaccuracies in the attendance list saying she joined Parliament in August 2022, not earlier as indicated in the Report. She asked for her attendance to be accurately reflected from August 2022 onwards, particularly in Committee proceedings starting from September 2022. Despite this issue, she indicated she wanted to adopt the Report once the corrections were made.

Ms Tseke thanked the support staff, particularly Ms Dawood, for compiling the Legacy Report and acknowledged the collective effort of Members enriching the document through input. She emphasised the importance of effective oversight to ensure the implementation of approved budgets and time frames for submission of Bills by departments was necessary despite challenges present.

Ms Tseke seconded the motion for the Committee to adopt the Report expressing pride in the work accomplished by the Committee since 2019. There were reports of delayed dismissals in instances where senior officials were suspended for extended amounts of time and Mr Hendricks raised this concern highlighting the need for timely action in such cases.

Water issues in Johannesburg were also a concern, and the Committee made efforts to address it, including with interventions by entities such as Rand Water and the City of Johannesburg who tackled water challenges under the Mayor's leadership.

The Chairperson said attendance records had to be accurate.

Report of the Portfolio Committee on Water and Sanitation on the National Water Resources Infrastructure Agency Bill [B24-2023] (National Assembly – sec 75)
 On 1 August 2023, the proposed legislation ‘National Water Resources Infrastructure Bill’ was introduced in the National Assembly with an explanatory summary published in the Government Gazette (Number 49063) seeking to establish the South African National Water Resource Infrastructure Agency as a state-owned company (SOE) or major public entity to provide for the objects and functions of the Agency.

On 25 August 2023, the Bill was tabled and referred to the Committee to facilitate effective public participation, where the Committee in a virtual meeting held on 19 September 2023, briefed the Department of Water and Sanitation on its contents, later publishing a call for public comments.
Responses were open for the period ending 4 November 2023, with comments ranging from partial agreement to complete rejection of the Bill. Concerns about the intent of establishing a new agency came to the fore rather than specific comments directed at the content of the Bill and some individuals believed existing institutions should be held accountable and capacitated to provide water services.

Other responses expressed concern about increased costs, privatisation, and the potential corruption associated with the new Agency.

The Committee received two substantive written submissions from the South African National Biodiversity Institute and the Western Cape Provincial Government. The former supported the Bill with suggestions for enhancement while the latter expressed uncertainty and did not support the Bill due to concerns about a lack of socioeconomic impact assessment.

Various stakeholders made oral submissions, including the National Economic Development and Labour Council (NEDLAC), National Treasury, and the Congress of South African Trade Unions (COSATU). On 28 November 2023, the Department of Water and Sanitation addressed these issues during public hearings.

On 6 February 2024 and 20 February 2024, the Committee deliberated on amendments, proposing and adopting numerous changes to several clauses in the Bill. These amendments included corrections, replacements, and clarifications related to definitions, contracting, parliamentary oversight, board composition, special majority, and parliamentary roles in financial reporting and oversight.

The Committee aimed to ensure the effectiveness and accountability of the proposed Agency through thorough consideration of the amendment process during public participation.

Adoption of the Report
Ms Matuba motioned to adopt the report, which was seconded by Ms M Pietersen (ANC).

Ms Tseke also seconded the motion and the Report was duly adopted. Read here https://pmg.org.za/tabled-committee-report/5702/

In-house Matters
The meeting might be the last for the Portfolio Committee under the Sixth Parliament although there were two Tuesdays remaining and the Committee could still convene.

The Department’s Third Quarter financial and non-financial performance report for 2022/23 was outstanding and Ms Pietersen proposed the Committee meet to discuss it.

The Committee Secretariat confirmed the Report would be ready for the meeting the following week and the Chairperson adjourned the meeting.