UMGENI WATER - Appointment of interim board - BIUMWA

Appointment of interim board -  BIUMWA



Umgeni Water

Company code: BIUMWA

SENS: APPOINTMENT OF INTERIM BOARD AT UMGENI WATER

Further to our SENS announcements of 15 August 2017 and 5
September 2017, we are pleased to provide a further update
regarding the board of Umgeni Water.

Cabinet has published a statement regarding the Cabinet meeting
held on 27 September 2017 at the Union Buildings in Pretoria. In
the relevant part, the Cabinet Statement records that:

“3.1 Cabinet was appraised on the situation at the Umgeni Water
Board which is the second largest water board in the country with
an annual turnover of more than R2,4 billion and its five year
Capital Expenditure budget of more than seven billion rand.
Cabinet was also briefed on the discussions the department of
water and sanitation was having with its investors.

3.2 In order to stabilise the governance issues of the Board
Cabinet endorsed the appointment of the Interim Board whilst the
Minister is expediting the process to appoint the fully fledged
Umgeni Water Board. Cabinet was satisfied with the work that the
Minister was doing in stabilising the Umgeni Water Board.”

The full cabinet statement can be read at:
https://www.gcis.gov.za/newsroom/media-releases/statement-cabinet-
meeting-27-september-2017

The Board is comprised of the following members:

    Ms Ziphozethu Mathenjwa (Chairperson);
    Ms Nompumelelo Chamane;
    Mr Visvin Reddy;
    Mr David Dikoko;
    Ms Zodwa Manase;
    Adv Tshidi Hashatse; and
    Mr Midiavhathu Tshivhase.
                                                                    
The Board includes people with vast experience in the water
sector, with the requisite financial, legal and management
experience.

On 28 September 2017, the Minister met with the members of the
interim board in Pretoria in order to finalise their appointment.
The Board thereafter separately convened its first meeting in
order to craft the way forward for the utility.

The appointment of the Board brings to an end the Interim
Governance Protocol referred to in our SENS announcement of
8 September 2017. The Board will act as the accounting authority
of Umgeni Water during this interim period until the Minister
appoints a new board, in accordance with the prescripts of the
Water Services Act, No.108 of 1997.

The Board will have full responsibility for the governance of
Umgeni Water and has already constituted its sub-committees with
the independent audit committee comprising of the following
members:

Ms. Zodwa Manase           Chairperson

Mr. Midiavhathu Tshivhase   Member

Ms. Nompumelelo Chamane     Member


Mr. Siboniso Shabalala     (Attendee - Chair of Ethics Committee)




In due course, the Board will consider the acting Chief Executive
role and the plan for filling certain executive positions.

Umgeni Water re-affirms its commitment to transparency and good
governance and has, and expects, to continue to meet its
obligations to all stakeholders, including holders of its listed
notes. In her media statement released on 27 September 2017, the
Minister “…has further committed to expedite the appointment
                                                                     
process of a fully-fledged Board at Umgeni Water and will engage
all relevant stakeholders to the process to ensure transparency
and cooperation in the interests of Umgeni and the people of South
Africa.”

The Minister’s full media statement can be read at:
http://www.dwa.gov.za/Communications/PressReleases/2017/MS%20-
%20Minister%20Mokonyane%20moves%20swiftly%20to%20allay%20investor%
20fears%20on%20Umgeni%20Water.pdf

Adverts for the new Board Nomination process were published in 2
(two) national newspapers over the weekend (Sunday Times and City
Press), and in (two) local newspapers (The Mercury and the
Witness) on Monday, 2 October 2017.

Further announcements will follow should there be any material
developments.

Date 3 October 2017

Enquiries: S. Madonsela 033 341 1544/1066 email:
sibusiso.madonsela@umgeni.co.za

Debt Sponsor: Investec Bank Limited

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