INTRODUCTION

Composition and Functioning of the Board

Umgeni Water has a unitary Board comprising 13 non-executive members and one Executive member, the Chief Executive. The roles of the Chairperson and that of the Chief Executive are separate to ensure balance of power. The Chairperson of the Board and all other Board members (with the exclusion of the Chief Executive) are independent non-executive directors in the manner described in King III Report on Corporate Governance, 2009 (hereinafter referred to as “King III”). All Board members execute their legal duties in a professional manner, with integrity and enterprise. In terms of the Water Services Act (No 108 of 1997), Board members (save for the Chief Executive who is appointed by the Board) are appointed by the Minister of Water and Sanitation Affairs.

The tenure of the previous Board came to an end on 30th June 2017. Some of its members had already served two terms. The Minister of Water and Sanitation, the Executive Authority of Umgeni Water, took a decision not to extend the term of the Board.

In the interest of strengthening governance within the organisation, an interim seven-member Board was appointed by the Minister of Water and Sanitation and endorsed by Cabinet.
Members of the interim Board are:

No. Name Designation
1. Ms Ziphozethu Mathenjwa Chairperson
2. Adv. Tshidi Hashatse

Member & Capex Committee Chairperson

3. Ms. Zodwa Manase Member & Audit Committee Chairperson
4. Ms. Nompumelelo Chamane Member & HR & REMCO Chairperson
5. Mr. David Dikoko Member
6. Mr. Visvin Reddy Member
7. Mr. Midiavhathu Tshivhase Member
8. Mr. Thami Hlongwa Acting Chief Executive and ex-officio Member of the Board

Members of the interim Board have vast experience in the water sector and expertise in business, finance, legal and management. The interim Board will act as Accounting Authority with full responsibility for governance.  This Board will remain in place until the Minister appoints a new Board, in accordance with requirements of the Water Services Act, No.108 of 1997.

The Board is accountable for the leadership and control of Umgeni Water. Its responsibilities include  development, review and monitoring of strategic objectives, approval of major capital expenditure, risk management and monitoring of operational and financial performance.

The Government of the Republic of South Africa, represented by the Minister of Water and Sanitation, is the sole shareholder of Umgeni Water. The Board concludes a shareholder compact with the Executive Authority.

A Board Charter (reviewed in 2012) provides a framework for fiduciary duties, responsibilities and overall functioning of the Board. The Board Charter is read in conjunction with the Public Finance Management Act (No 1 of 1999), as amended together with Treasury Regulations (GG 27338) and as amended from time to time, the Water Services Act (No 108 of 1997), as amended, and King Code of Governance Principles, 2009 (King III).

Non-executive directors receive no significant benefits other than a cell phone allowance and director’s fees. Director’s fees are determined by the Minister of Water and Sanitation on an annual basis and, therefore, no Board member is involved in determining his or her own remuneration.

The Board has established three committees to assist it in discharging its responsibilities, namely:

  • Audit Committee
  • Capital Projects, Fixed Assets and Procurement Committee
  • Human Resources and Remuneration Committee