UMGENI WATER - Statement by the Minister of Water and Sanitation relating to developments around the Umgeni Water Board

Statement by the Minister of Water and Sanitation relating to developments around the Umgeni Water Board

Umgeni Water
Registration number: 1997/007707/07
JSE alpha code: BIUMWA
(“Umgeni Water”)

STATEMENT BY THE MINISTER OF WATER AND SANITATION FOR UMGENI WATER
LENDERS RELATING TO DEVELOPMENTS AROUND THE UMGENI WATER BOARD

The Board of Umgeni Water ("the Board") was appointed on 01 May 2019 by the former
Minister of Water and Sanitation, Mr G E Nkwinti, MP. The term of office of the Board
was to expire on 30 April 2023. The former Minister of Human Settlements, Water and
Sanitation, MS L N Sisulu, MP dissolved the aforesaid Board.

As a result of the dissolution, the Board members took the matter to the High Court,
KwaZulu-Natal seating in Pietermaritzburg ("the High Court”), challenging both the
decision to dissolve their membership as well as the appointment of the Interim Board,
which has been running the Board since its appointment.

The High Court has since delivered its judgment on the matter. The judgement effectively
means that the appointment of the Interim Board was unlawful and subsequently set
aside. This therefore means that the Board that was previously disestablished should be
reinstated. However, whilst the Board has been reinstated, their appointment was not
endorsed by Cabinet which requires that once the Minister approves the recommended
candidates for appointment, following compliance with section 35 read with Schedule 1
procedure of the Water Services Act,1997 (Act No 108 of 1997) ("the Act'), a written
submission, including the names of the candidates has to be presented to Cabinet for
endorsement.

I intend to ratify their appointment and disestablish the Interim Board in compliance with
the aforementioned court judgement. The process of ratification and disestablishment
of the Board and Interim Board respectively, will result in a temporary gap for almost a
period of 14 days until Cabinet has ratified their appointment.

In the meantime, the Chief Executive Officer of the Board will automatically become
the accounting authority as required by section 49 of the Public Service Management
Ad,1999 (Act No. 1 of 1999) supported by the Acting Director-General of the Department
of Water and Sanitation, unit such time the ratification and/or endorsement by Cabinet
is finalised as envisaged.

Kindly inform your executive of the developments.

Yours sincerely
MINISTER OF WATER AND SANITATION

28 October 2021

Debt Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Date: 28-10-2021 11:45:00
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