INTRODUCTION

Composition and Functioning of the Board

Umgeni Water has a unitary Board comprising thirteen (13) non-executive members and one (1) Executive member, the Chief Executive. The roles of the Chairman and that of the Chief Executive are separate to ensure the balance of power. The Chairperson of the Board and all other Board members (with the exclusion of the Chief Executive and one non-executive director), are independent non-executive directors in the manner described in the 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 list of Board members is shown here.

The Board is accountable for the leadership and control of Umgeni Water. Its responsibilities include the development, review and monitoring of strategic objectives, the 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, and the Department of Water and Sanitation, is the sole shareholder of Umgeni Water. The Board concluded a shareholder compact with the Executive Authority, the Minister of Water and Sanitation.

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 the King Code of Governance Principles, 2009 (King III).

Non-executive directors receive no significant benefits other than a cell phone allowance and directors’ fees. Directors’ fees are determined by the Minister of Water and Sanitation on an annual basis and therefore no Board member is involved in determining their 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