PRESENTATION TITLE

Presented by:

Name Surname

Directorate

Date

WTE FINANCIAL PERFORMANCE AS AT

THE YEAR-ENDED

31 MARCH 2017

Presented by: MR M Mofokeng

Chief Financial Officer (WTE)

1

ContentsPart A:

• Income and Expenditure for the month ended 31 March 2017

• Expenditure Augmentation Funded Projects

• Analysis Spending

• Analysis Spending and Overdraft Narrative

• Debtors age Analysis as at 31 March 2017

• Status on Companies and individuals Rand value and percentage

• Legal status on number of municipalities and percentage

• Water Boards Age analysis as at the 31 March 2017

• Collection Interventions

• Strategies undertaken/to be taken to collect outstanding debt

• Query Resolutions as at 31 March 2017

• Payments to Suppliers within 30 Days

• SCM Performance Information

• Trend analysis: irregular expenditure amount

Appendices

Part A: WTE FINANCIAL PERFORMANCE AS AT THE YEAR-

ENDED 31 MARCH 20172

PART B: SUMMARY AGE ANALYSIS

OF MUNICIPALITIES PER PROVINVE

3

4

BUDGET

2016/17

ACTUAL

2016/17

ACTUAL

2015/16

ORIGINAL

BUDGET

REVISED

BUDGET

REVISED

BUDGET

vs.

ORIGINAL

BUDGET

R'000 R'000 R'000 R'000 R'000 R'000 %

REVENUE 9 121 489 9 369 843 12 499 615 3% -25% 8 683 829 9 121 489 437 660 108%

National Water Resource Infrastructure 3 158 557 3 265 673 3 958 852 3% -21% 3 067 427 3 158 557 91 130 106%

Proto CMA's 415 369 474 567 454 156 14% 4% 403 385 415 369 11 984 118%

TCTA Revenue 5 045 574 5 334 178 7 395 255 6% -39% 4 991 077 5 045 574 54 497 107% Construction Income 501 988 295 426 691 352 -41% -134% 221 940 501 988 280 048 133%

OTHER INCOME 1 784 642 1 786 496 1 540 862 0% 14% 1 784 642 1 784 642 - 100%

Augmentation -Water Resources &

Infrastructure(VAT Incl.) 1 709 462 1 709 462 1 522 038 0% 11% 1 709 462 1 709 462 - 100% Other 75 180 77 034 18 824 2% 76% 75 180 75 180 - 102%

TOTAL INCOME 10 906 131 11 156 339 14 040 476 2% -21% 10 468 471 10 906 131 437 660 107%

OPERATING EXPENDITURE 7 790 694 7 843 087 10 463 555 -1% -33% 7 288 646 7 790 694 (502 048) 108%

Compensation of Employees 908 523 757 233 690 248 17% 9% 908 523 908 523 - 83%

Goods and Services 1 389 106 1 244 924 3 707 437 10% -198% 1 167 106 1 389 106 (222 000) 107%

Construction Costs 501 988 295 426 691 352 41% -134% 221 940 501 988 (280 048) 133%

TCTA Payments 4 991 077 5 545 503 5 374 518 -11% 3% 4 991 077 4 991 077 - 111%

PROJECTS EXPENDITURE 6 015 108 4 749 201 3 662 329 -21% 30% 5 773 576 6 015 108 (241 532) 82%

Augmentation Projects Only (VAT Incl.) 2 163 011 1 690 385 898 546 22% 47% 2 266 983 2 163 011 103 972 75%

Revenue Projects (Metering, ROCS &

Refurbishment & Rehabilitation) 749 119 646 351 630 797 14% 2% 1 075 119 749 119 326 000 60%

Other Projects 3 102 978 2 412 465 2 132 985 22% 12% 2 431 474 3 102 978 (671 504) 99%

TOTAL EXPENDITURE 13 805 803 12 592 288 14 125 883 -9% -12% 13 062 223 13 805 803 (743 580) 96%

Movable Assets 35 528 20 289 82 628 -43% -307% 35 528 35 528 - 57%

SURPLUS/(DEFICIT) (2 935 200) (1 456 239) (168 035) -50% 767% (2 629 280) (2 935 200) (305 920) 55%

ACTUAL

2016/17 vs.

REVISED

BUDGET

INCOME AND EXPENDITURE FOR THE WATER TRADING ENTITY

FOR THE MONTH ENDED 31 MARCH 2017

ECONOMIC CLASSIFICATION

ACTUAL

vs.

BUDGET

Var

%

ACTUAL

(2015/16)

vs.

ACTUAL

(2016/17)

Var

%

YEAR-TO-DATE ANNUAL

5

ORWRDP (Ph 2A) - De Hoop Dam 22 000 15 673 6 327 71% 22 000 22 000 71%

ORWRDP-2C 150 000 135 291 14 709 90% 150 000 150 000 90%

ORWRDP-2D 314 641 68 922 245 719 22% 56 896 314 641 22%

ORWRDP-2E 20 567 25 570 (5 003) 124% 64 499 20 567 124%

ORWRDP-2F 38 849 10 380 28 469 27% 64 499 38 849 27%

GLeWAP Phase (Nwamitwa Dam) 133 834 155 328 (21 494) 116% 98 544 133 834 116%

GLeWAP Phase (Tzaneen Dam Raising) 46 800 47 028 (228) 100% 36 800 46 800 100%

Dam safety rehabilitation program (DSRP) 144 761 81 497 63 264 56% 235 965 144 761 56%

Water Resources Project: Raising of Clanwilliam Dam 109 426 78 635 30 791 72% 209 177 109 426 72%

Development of Raising of Hazelmere Dam 203 164 190 649 12 515 94% 242 094 203 164 94%

Mzimvubu Water Project 113 514 73 999 39 515 65% 208 287 113 514 65%

Acid Mine Drainage (AMD) 599 821 599 821 0 100% 599 821 599 821 100%

SUBTOTAL 1 897 378 1 482 794 414 584 78% 1 988 582 1 897 378 78%

VAT 265 633 207 591 58 042 78% 278 401 265 633 78%

TOTAL 2 163 011 1 690 385 472 626 78% 2 266 983 2 163 011 78%

FOR THE MONTH ENDED 31 MARCH 2017

EXPENDITURE FOR AUGMENTATION FUNDED PROJECTS

ACTUAL

vs.

REVISED

BUDGET PROJECT NAME

YTD ANNUAL

CASH FLOW ACTUAL

VAR.

&

ORIGINAL

BUDGET VARIANCE

REVISED

BUDGET

6

Analysis Spending

Revenue Performance

•The revenue billing performance for the financial year 2016/17 is in line with the revised budget and this can be attributed to the

efforts that the entity is making to improve on efficient and completeness of the revenue billing.

•Total amount for augmentation for the financial year 2016/17 has been claimed and received from Main Account.

Operating Expenditure

• Employee costs reflects an under spending of 17% when compared to for the annual budget for the financial year 2016/17.

The leave accrual that were reflected during the past periods has been reversed and the adjustment will be processed during

the year-end activity. The under spending reflected will therefore be reduced once the leave accruals are processed.

• Goods and Services reflect an under spending of 10% against the revised budget. The expenditure for goods and services

exclude the accruals.

•TCTA payments reflect an over spending of 11% against the annual budget.

•The under spending on the infrastructure projects is due to the following

•Delays in the appointment of the civil PSP for Clanwilliam Dam projects. (The tender has been advertised and closed but

not yet evaluated). In the process of appointing a technical sub evaluation committee for the technical evaluation of the

bids

•There was a challenges with the installation of operational anchors, which resulted in slow progress on the Hazelmere

project. However the challenge was resolved and the construction is in progress.

•The late approval of the variation order for Mzimvubu Water Project has caused the delay in the appointment of sub-

consultant to do the investigation which affected the design work by the PSP. The specification to appoint the ECO has

been approved.

• The construction projects of DSRP are not progressing well due to the following reasons:

•The design of drawings have not yet been signed by an APP and an approved EMP has not been

completed, awaiting (1) the approval of the appointment of an APP for construction and (2) an

Environmental Management Plan (EMP).

•Delays in appointment of subcontractors for cutting of spillway notches and provision of gabion and

rock fill materials.

7

Analysis of Spending & Overdraft Narration

•Supplier not performing in accordance with specification on the contract.

•Delays with the approval of the National Tender for supply and delivery of crusher-run.

•Delay in the approval of TOR for combined civil, mechanical and electrical works.

•Due to the current under spending there was budget reduction of R139 million (VAT Incl.) from the

original budget of R2.7 billion. The budget was reprioritised to fund SAP licenses.

Overdraft Narration

• National Treasury reduced the Augmentation for the MTEF Cycle of 2016/2017 to 2018/19 by R4.4

billion

• National Treasury reduced the MTEF allocation citing the accumulated surpluses within the Entity

(these were non cash surpluses or reserves).

• The long outstanding debt of R2.9 billion owed by Municipalities and Water Boards was included in

the budget for 2016/17 as part of revenue to be received. This amount was not recovered.

• The Department (WTE) engaged with National Treasury and indicated that the surpluses referred to

were non cash surpluses but it (WTE) did not succeed in the engagements.

• Department/WTE and National Treasury (NT) initiated engagement to agree on a realistic budget for

WTE after noting deteriorating financial situation on the entity.

• On 20 April 2017 the Department wrote a letter to NT committing to reduce the overdraft , by R200

million at the end of June 2017, R748 at the end of March 2018 and the remainder to be reduced

during 2018/19 financial year.

• The Entity has implemented stringent/strict Cash Flow Management.

The Overdraft at 30 April 2017 was R3.276 billion and at 30 June 2017 the overdraft was R 2.277 billion which is a total reduction of R 999 million.

8

Row Labels Sum of Total

Sum of

Current

Sum of 30+

Days

Sum of 60+

Days

Sum of 90+

Days

Sum of 120+

Days

Sum of 150+

Days

% Against

total debt

R'000 R'000 R'000 R'000 R'000 R'000 R'000

Bulk Payers (BP) 745 25 - - - - 720 0%

Company (C) 1 651 193 891 707 (411 941) 8 458 10 138 34 058 1 118 774 17%

Individual (I) 455 951 52 784 4 410 1 118 (278) 1 010 396 908 5%

Total Companies/Individuals 2 107 890 944 516 (407 531) 9 576 9 860 35 068 1 516 402 21%

District Municipalities (DM) 1 111 965 56 173 81 232 17 991 9 001 13 977 933 591 11%

Local Municipalities (LM) 2 510 590 270 677 73 276 31 724 2 867 45 248 2 086 798 25%

Metro Municipalities (MM) 33 393 33 673 (11 472) 1 297 772 373 8 750 0%

Total Municipalities 3 655 948 360 523 143 035 51 012 12 640 59 598 3 029 139 37%

Irrigation Boards (IB) 324 263 63 139 2 634 64 60 619 257 749 3%

Water User Association (A) 723 065 142 096 15 129 8 769 1 260 8 085 547 726 7%

Total Billing Agents 1 047 328 205 234 17 763 8 833 1 320 8 704 805 474 11%

National Department (N) 131 809 13 496 129 570 143 497 116 973 1%

Provincial Government (P) 14 322 794 195 88 12 90 13 143 0%

Total Departments 146 131 14 290 325 658 155 587 130 116 1%

Water Boards (WB) 2 968 685 590 697 434 823 32 973 6 473 33 712 1 870 008 30%

Total Water Boards 2 968 685 590 697 434 823 32 973 6 473 33 712 1 870 008 30%

Grand Total 9 925 981 2 115 259 188 415 103 051 30 448 137 669 7 351 139 100%

% Against total debt 100% 21% 2% 1% 0% 1% 74%

Debtors Age Analysis as at 31 March 2017

Status on Companies and individuals Rand value and

percentage

9

10

Legal status on number of municipalities and percentage

11

Water Boards Age analysis as at the 31 March 2017

Customer Name Total

Sum of

Current

Sum of

30+ Days

Sum of

60+ Days

Sum of

90+ Days

Sum of

120+ Days

Sum of

150+ Days Comments

R'000 R'000 R'000 R'000 R'000 R'000 R'000

SEDIBENG WATER 1 851 451 122 393 72 547 14 467 -2 473 21 255 1 623 263

Not paying, only

paying Vaal

Gamagara

RAND WATER 791 393 414 815 323 396 69 83 - 53 029

Paying,

Requested a

write-off on old

Bushbuckridge

UTHUKELA WATER 196 377 9 457 3 739 1 703 - 1 822 179 655

Not paying,

proposal was

recevied

requesting DWS

to write-off 50%

MAGALIES WATER 34 094 6 337 14 142 6 558 7 057 - - PTP

LEPELLE NORTHERN

WATER 29 591 4 054 7 402 4 714 3 967 4 048 5 406

Not paying as

the DWS owes

them money

UMGENI WATER 23 426 22 592 748 2 2 2 80 Paying

BLOEM WATER 19 380 2 010 796 1 429 1 755 1 994 11 397

Paying but

disputing some

old debit notes

AMATOLA WATER

BOARD 13 434 4 944 7 499 17 14 25 935 Paying

MHLATHUZE

WATER 8 075 4 052 4 465 3 970 -3 970 4 472 -4 913 Paying

OVERBERG WATER 1 464 42 88 45 39 94 1 156 PTP

Grand Total 2 968 685 590 697 434 823 32 973 6 473 33 712 1 870 008 -

Collection Interventions

• The WTE dunning process didn’t yield any positive results as municipalities and water boards continued

with non payment of outstanding debt. Therefore the entity had to identified other intervention to collect the

debts.

• Letter of demands were sent to all water users not paying the accounts (includes telephone calls)

• Appointment of the debt collector to collect debt older than 60 days.

Mainly on companies, individuals, departments and municipalities

Water Boards, Billing agents are excluded from hand-over

• The entity decided to call and arrange meeting with the municipalities. Many municipalities were

disputing their accounts. WTE make efforts to correct accounts where customers had valid disputes.

Municipalities that had their queries resolved promised to start paying for their accounts, they still

continued with the non-payment of the accounts.

• WTE requested intervention from COGTA and Provisional Treasury. Municipalities made an

undertaking to sign the payment arrangement. However the municipalities that signed the payment

arrangement are not honouring the agreement.

• WTE wrote to COGTA and Minister of Finance in the current financial year to intervene as per the

intergovernmental relation Act. COGTA consulted with the affected municipalities, however there is no

positive results as yet.

• Hands over non-payers to legal for further handling

12

Strategies undertaken/to be taken to collect outstanding debt.

• Cabinet memo has been drafted in this regard, the DWS is still consulting with the Economic

Sectors Employment and Infrastructure Development Clusters. The DWS is requesting

support in implementing the following credit controls.

• Withholding of the equitable share.

– National Treasure (NT) to withhold equitable share for municipalities that are not paying as

prescribed by financial management prescripts. Alternatively the NT to transfer the equitable share

ring-fenced raw water use charges to WTE for non-paying municipalities.

• Restricting water supply

– National Water Act allows the DWS to restrict or suspend the flow of water to defaulting water users.

In order to collect the outstanding debts, WTE aims to allow municipalities an opportunity to make

representations within a reasonable period on any proposed restriction or suspension before the

restriction or suspension imposed. The restrictions will be implemented based on the payment

patterns of the municipalities. This strategy will have a direct negative impact on the communities

which may result to un-rest as the municipalities will not have enough water to deliver to the

communities.

– Restriction or suspension of water supply will affect will also affect economic activities that are

happening at local level.

• Listing

– Listing non-paying water users with the credit bureaus

13

14

Query Resolutions as at 31 March 2017

Service Topic Total Resolved OpenResolutio

n Rate

Invoice or Statement not Received 9 833 9 570 263 97%

Dispute of Customer Balance 2 024 1 788 236 88%

Payment not Reflecting on Statement 1 929 1 783 146 92%

Account closure 1 644 350 1 294 21%

Linking to billing agent 1 603 1 150 453 72%

Proof of Payment 638 602 36 94%

Master Data Change 604 595 9 99%

Tariffs 444 358 86 81%

Refund of Credit Balance 334 221 113 66%

CMA Volumes 292 257 35 88%

Email address update 276 259 17 94%

Transfer of Credit Balance 238 202 36 85%

General Billing 199 199 - 100%

Payment Allocation 176 134 42 76%

Request for Banking Details 148 141 7 95%

Vat Number Update 137 125 12 91%

NWRI (Cluster) Volumes 95 81 14 85%

Balance Enquiry 81 81 - 100%

OVERALL 20 695 17 896 2 799 86%

PAYMENTS TO SUPPLIERS WITHIN 30DAYS

On average 98% of invoices received within the month are paid ( Due

to Budget constrains, high volumes of invoices)

SCM PERFORMANCE INFORMATION• 44% procurement budget was spent on the qualifying small enterprises

(QSE) against the target of 15%.

• 2% procurement budget was spent on the emerging micro enterprises

(EME) against the target of 15%.

• The above will be improved in 2017/2018 as the Preferential

Procurement Regulation of 2017 has created an advantage for the

designated groups to be advanced.

• The underachievement is due to the failure to do targeted procurement whichfocuses on EME where normal goods and services are procured. The costcontainment measures also had an impact on the procurement from EME inthat services such as catering have been reduced significantly.

• The implementation of the National Treasury Central Supplier Database hasimprove the SCM compliance and reduced the incidents of irregular, fruitlessand wasteful expenditure relating to procurement through quotations.

• Job rotation for SCM Officials was implemented to ensure multi- skilled SCMOfficials.

• SCM Delegations of Authority were reviewed and implemented,.

16

Trend analysis: irregular expenditure amount

2011 2012 2013 2014 2015 2016

Amount 668,496,0 100,201,0 48,000,00 30,323,00 4,151,000 54,000,00

0.00

100,000,000.00

200,000,000.00

300,000,000.00

400,000,000.00

500,000,000.00

600,000,000.00

700,000,000.00

800,000,000.00A

mo

un

t

17

From 2011/2012 the irregular expenditure decreased until 2014/2015, but in

2015/2016 it increased.

The Irregular Expenditure for 2016/2017 which was identified by WTE amounts

to R4million and the amount identified during the audit by the AG amounts to

R1,7million( this amount has been disputed and an appealed has been lodged

with the AG).

Training for all End Users and SCM stakeholders regarding irregular, fruitless

and wasteful and irregular expenditure has taken place.

A circular on the measures to be implemented to prevent irregular, fruitless and

wasteful expenditure from occurring when procuring goods and services.

18

THANK YOU

8/31/2017 12:15 PM

APPENDICES

PART A:

WTE FINANCIAL PERFORMANCE AS AT

THE YEAR-ENDED 31 MARCH 2017

19

20

EXPENDITURE PERFORMANCE ON OPERATIONAL PROJECTS

Actual

Vs.

Revised

Budget

FOR THE MONTH ENDED 31 MARCH 2017

PROJECT NAME

YTD Annual

Cash Flow Actual Variance

%

Spent

Original

Budget

Revised

Budget Variance

SAP Support 80 000 67 784 12 216 85% 80 000 80 000 - 85%

Debt collections 126 000 96 083 29 917 76% 126 000 126 000 - 76%

Customer Relationship Management 106 384 120 884 (14 500) 114% 106 384 106 384 - 114%

Online invoices and statement 15 000 10 317 4 683 69% 15 000 15 000 - 69%

CMA SAP roll out (4.1) 51 000 87 474 (36 474) 172% 51 000 51 000 - 172%

Total Finance Projects 378 384 382 542 (4 158) 101% 378 384 378 384 - 101%

Verification & Validation 80 000 30 720 49 280 38% 80 000 80 000 - 38%

Water User licensing 60 000 4 603 55 397 8% 60 000 60 000 - 8%

Hartebeespoort dam biological

remediation programme 9 240 - 9 240 0% 24 000 9 240 (14 760) 0%

CMAs Deputy Director Financial

management 4 900 - 4 900 0% 4 900 4 900 - 0%

Project management agency

establishment 10 000 - 10 000 0% 10 000 10 000 - 0%

Adopt a River Project 8 760 10 376 (1 616) 118% - 8 760 8 760 118%

Total CMA Projects 172 900 45 699 127 201 26% 178 900 172 900 (6 000) 26%

21

Asset Management Plans (AMP) 50 000 26 721 23 279 53% 50 000 50 000 - 53%

Project management support - Cluster 1 534 1 632 (98) 106% 10 000 1 534 (8 466) 106%

Land Audit 8 200 6 590 1 610 80% 3 000 8 200 5 200 80%

Scheme Viability 2 000 1 208 792 60% 2 000 2 000 - 60%

Assessment of Irrigation schemes 26 000 30 163 (4 163) 116% 26 000 26 000 - 116%

Artisans development programmes 6 000 908 5 092 15% 14 000 6 000 (8 000) 15%

Water quality programme 1 000 - 1 000 0% 2 000 1 000 (1 000) 0%

Silitation 2 000 - 2 000 0% 5 000 2 000 (3 000) 0%

Calibrating Rig projects - - - 4 000 - (4 000)

Remote operations monitoring systems 1 000 - 1 000 0% 5 000 1 000 (4 000) 0%

Cuban secondment 41 460 31 733 9 727 77% 40 690 41 460 770 77%

Labelling of assets 10 000 - 10 000 0% 30 000 10 000 (20 000) 0%

Diversity management - - - 3 000 - (3 000)

Goedertrouw transfer scheme 176 500 - 176 500 0% 176 500 176 500 - 0%

SAP licenses (Excluding VAT) 285 000 250 000 35 000 88% - 285 000 285 000 88%

Total NWRI Projects 610 694 348 956 261 738 57% 371 190 610 694 239 504 57%

Acquiring CMA rental space 15 000 - 15 000 - 40 000 15 000 (25 000) 0%

Total Corporate services project 15 000 - 15 000 0% 40 000 15 000 (25 000) 0%

Stakeholder management 348 000 200 853 147 147 58% 150 000 348 000 198 000 58%

Total Communication projects 348 000 200 853 147 147 58% 150 000 348 000 198 000 58%

War on leaks 1 253 000 1 218 445 34 555 97% 1 253 000 1 253 000 - 97%

Total Planning and Information 1 253 000 1 218 445 34 555 97% 1 253 000 1 253 000 - 97%

Project management support and PMU (DG's Office) 20 000 - 20 000 0% 60 000 20 000 (40 000) 0%

Vaal Water Treatment 300 000 214 488 85 512 71% - 300 000 300 000 71%

Internal Audit 5 000 1 483 3 518 - 5 000 5 000 30%

Total for PMU, Vaal Water Treatment and IA 325 000 215 970 109 030 66% 60 000 325 000 265 000 66%

TOTAL 3 102 978 2 412 465 690 513 78% 2 431 474 3 102 978 671 504 78%

Variance

Actual Vs.

Revised

Budget

EXPENDITURE PERFORMANCE ON OPERATIONAL PROJECTS

FOR THE MONTH ENDED 31 MARCH 2017

Annual

PROJECT NAME

YTD

Cash Flow Actual Variance % Spent

Original

Budget

Revised

Budget

22

Reasons for (Under) /Over spending…Cont.

Asset Management Plans (AMP) :W0485

The project has under spent by R23 million. The under spending is due to the delays. The delays

were as the result of incomplete information on the asset register and as well as poor

performance by the service provider.

Water quality programme:

An amount of R1 million has been reprioritised to other projects due to the delay in the

appointment of the 10 water quality generalists.

Remote operations monitoring systems:

The project has been negatively affected by the delay in appointing the 10 water quality

generalists. The candidates are expected to prepare the specification of the remote monitoring

system. Due to the delay encountered an amount of R4 million has been reprioritised to other

projects that require additional funding.

23

Reasons for (Under) /Over spending…Cont.

Labelling of assets :W1100-WTE:

The under spending on the project is due the re-submission of specification for

the project. The initial specification mentioned the need to source PSP instead

of sourcing the contractor for labelling and PSP for verification.

An amount of R20 million has been reprioritised to other projects that require

additional funding.

Goedetrouw Transfer Scheme:

The contractor for the project was appointed during December 2016 for design

and construction. The allocated funds was not spend in the current financial

year due to the delay in the appointment of contractor for design and

construction.

24

Analysis of Debtor’s Age Analysis 31 March 2016 vs. 31 March 2017

31 MARCH 2016

31 MARCH

2017 VARIANCE

Bulk Payers (BP) 3 193 745 2 448

Company (C) 1 174 644 1 651 193 (476 549)

Individual (I) 392 892 455 951 (63 059)

Total

Companies/Individuals 1 570 729 2 107 890 (537 161)

District Municipalities

(DM) 736 365 1 111 965 (375 599)

Local Municipalities (LM) 1 888 261 2 510 590 (622 330)

Metro Municipalities

(MM) 77 728 33 393 44 335

Total Municipalities 2 702 354 3 655 948 (953 593)

Irrigation Boards (IB) 274 556 324 263 (49 707)

Water User Association 370 900 723 065 (352 165)

Total Billing Agents 645 456 1 047 328 (401 872)

National Department (N) 106 544 131 809 (25 264)

Provincial Government

(P) 13 224 14 322 (1 098)

Total Departments 119 769 146 131 (26 362)

Water Boards (WB) 2 537 820 2 968 685 (430 865) Total Water Boards 2 537 820 2 968 685 (430 865)

GRAND TOTAL 7 576 128 9 925 981 (2 349 853)

CUSTOMER

CATEGORY

CHANGE

S R'000

Comments• The company and individual balance increased by R476 million and R63 million respectively.

Increase in company balance is due to licence captured that billed for the first time since

the issuing of the licence

Mintails mining R72 million

Sasol mining R77 million

ORANJE MYNBOU R 16 million

EZULWINI MINING COMPANY R23 million

Midvaal water company R 50 million ( increase in consumption)

AFRISAM (SOUTH AFRICA) R 9 million

Handed-over to legal due to non-payment

CHARL SENEKAL SUIKER R 18 million

NCORA IRRIGATION PRODUCERS ASSEMBLY R14 million

MASWIRI BOERDERY R22 million

Handed-over for collection

OPTIMUM COLLIERY R R47 million

• To improve collections individuals and companies needs to be listed with the credit bureaus

as non-payers.

25

Comments……..cont

• The District municipalities balance increased from R736 million to R1.1 billion. The main

contributors are as follows;

26

31-Mar-16 31-Mar-17 Increase comments

R''000 R''000

VHEMBE DISTRICT MUNICIPALITY 258 655 497 364 -238 709

Summonses issued

defending

MOPANI DISTRICT MUNICIPALITY 171 601 223 831 -52 230

Summonses issued,

defending

ZULULAND DISTRICT MUNICIPALITY 35 218 45 587 -10 368

Declaration of

dispute

Other 270 890 345 183 -74 293

Total 736 365 1 111 965 -375 600

Comments……..cont• The Local municipalities balance increased from R1.8 billion to R2.5 billion. The main

contributors are as follows;

• The Metro municipality balance decreased from R78 million to R33 million. Metro are paying

the accounts on the regular basis

27

31-Mar-16 31-Mar-17 Increase comments

R''000 R''000

LEKWA LOCAL MUNICIPALITY 290 914 378 827 -87 913 Summonses issued

MALUTI-A-PHOFUNG LOCAL MUNICIPALITY 180 020 305 747 -125 727 Summonses issued

MSUKALIGWA MUNICIPALITY 151 186 189 229 -38 043 Summonses issued

LEKWA - TEEMANE LOCAL MUNICIPALITY 143 465 171 148 -27 683 Summonses issued

MAFUBE LOCAL 106 717 134 812 -28 095 Summonses issued

POTCHEFSTROOM LOCAL MUNICIPALITY ( TLOKWE) 58 144 63 087 -4 943 Summonses issued

EMALAHLENI MUNICIPALITY 117 362 130 446 -13 084 Summonses issued

ERMELO MUNICIPALITY 66 652 116 243 -49 591 Summonses issued

other 773 801 1 021 053 -247 252

Total 1 888 261 2 510 590 -622 329

Comments……..cont

• The National Government balance increased from R106 million to R131 million. The main

contributors are as follows;

• Follow-ups are being made to collect this debt, the main challenge is the National Departments

always refers the WTE to the provincial departments and Public works. Meetings are being held

to clarify the ownership of the debt.

• The Provincial Government balance increased from R13 million to R14 million. The increase in

this category is minimal.

28

31-Mar-16 31-Mar-17 Increase comments

R''000 R''000

DEPARTMENT OF AGRICULTURE 53 642 65 054 -11 411 -

DEPARTMENT OF PUBLIC WORKS 15 180 17 686 -2 506 -

other 37 722 49 069 -11 347 -

Total 106 544 131 809 -25 265

• The balance of the Irrigation Board increased from R275 million to

R324 million which is an indication of not paying the account. While

the Water User Association balance increased from R370 million to

R723 million.

• The main challenge is some of the WUAs/IRBs operating without

signing the billing agent agreements.

• 47 billing agent agreement were signed by DWS and WUAs/IRBs.

We have 279 WUAs/IRBs combined. Only 93 belongs to SAAFUWA.

The DWS is able to coordinate those that belongs to SAAFUWA. The 186

WUAS/IRBs are not coordinated and its difficult to get them to sign the agreement.

DWS should is encouraging the 186 to join SAAFUWA so that the coordination can

be simplified.

The non-payers will also be handed-over to legal

29

Comments

Appendices:

Part B WTE Summary of age analysis

30

31

THANK YOU

8/31/2017 12:15 PM