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Mr Siyabulela Koyo
Chief Executive
I am pleased to present the Amatola Water Integrated Annual Report for the financial year ending 30 June 2024. This report fulfils our legal and compliance obligations and serves as a platform for engaging with stakeholders about the entity’s performance.
The water sector faced challenges in the past year, including increased demand, deteriorating ecosystems, inconsistent services, inequitable distribution, weak regulatory oversight and operational hurdles like power outages and infrastructure vandalism.
Despite these challenges, our audited performance results at the end of 2023/24 reflected an overall outcome of 63% against the predetermined targets. Compared with the 2022/23 actual achievement of 59%, the overall corporate performance of the entity has improved by 4%. In addition to this achievement, the entity has maintained its unqualified audit outcome for the year under review.
The entity continued its efforts to enhance the quality and reliability of the water services provided to customers during the period under review. This involved ensuring the supplied water meets quality standards through effective treatment and infrastructure maintenance.
The entity met water quality standards for acute health chemical, chronic health chemical, and aesthetic compliance but faced challenges in meeting acute health microbiological compliance and operational compliance requirements due to frequent burst pipes and high iron and manganese content in raw water.
During the reporting period, the raw water supply assurance percentage target was met, and unplanned interruptions averaged seven days per quarter, primarily due to high population demand, loadshedding, and occasional pipe bursts from ageing infrastructure.
The kWh/cubic metre water production ratio has risen to 1.34 in 2023/24 from 0.872 in 2022/23, primarily due to water loss from pipe breaks and illegal connections. The South African Bureau of Standards conducted an external ISO 45001 audit in 2023/24 to assess Amatola Water’s Occupational Health and Safety Management System’s compliance with ISO 45001:2018 requirements.
Eighteen non-conformances were identified and resolved, allowing the entity to maintain its accreditation. An action plan based on inspections and audits has been developed to improve occupational health and safety performance. The plan aims to monitor compliance with the ISO 45001:2018 Management System and ensure the achievement of objectives embedded in the Amatola Water Integrated Management Policy, including other strategic imperatives.
The organisation’s financial health is a concern due to difficulties in recovering service costs, increased debtor collection periods and an operating deficit of R164 million reported for the 2023/24 financial year, exacerbated by municipal debt impairment, interest charges on raw water purchases and increasing wage costs. Amatola Water has developed a Financial Turnaround Strategy to address the financial challenges targeting eight areas, which will inform the implementation plan activities.
Amatola Water’s success is attributed to its skilled, motivated workforce, which has been built by investing in training, development, and fostering a positive work culture.
Amatola Water partnered with the Energy & Water Sector Education Training Authority (EWSETA) to enhance employee skills and competencies. This partnership resulted in Amatola Water receiving a budget allocation from the EWSETA to ensure the implementation of the training plan. The entity aims to attract and retain employees and enhance productivity. Tertiary education financial assistance was provided to seven employees during the reporting period. Six employees and 16 learners were placed on workplace-integrated learning programmes. Six learners were from the Department of Labour; 10 were from the Eastern Cape Office of the Premier.
Amatola Water is classified as a hazardous workplace that adheres to the Occupational Health and Safety Act 1993. Regular occupational hygiene surveys, pre-employment and routine medicals, an in-house occupational health clinic, and a health and safety committee to manage occupational health risks. The water entity also offers off-site support and health education employee assistance to empower employees to make healthy work-life choices, resulting in higher employee returns.
Amatola Water aims to enhance its culture to enable successful strategy implementation based on its corporate values and build a sound organisational structure by focusing on structured delivery services and continuous employee development.
Amatola Water developed its Climate Change Resilience Strategy (CCRS) to address potential climate change risks. The strategy differentiates between adaptation and mitigation measures, considering Amatola Water’s ability to respond to physical risks and contribute to global greenhouse gas emissions. The CCRS outlines a phased implementation plan to increase Amatola Water’s resilience to climate change impacts, ensuring a more sustainable future.
The entity’s strategic plan prioritises improved provision of safe and reliable water services, effective corporate governance and ethical leadership, improved financial viability, improved stakeholder relations, efficient and innovative organisational, enhanced environmental sustainability, and a highly skilled, engaged and productive workforce.
Despite the uncertainties in the operating environment, our team’s resilience and professionalism have been commendable.
I thank the Interim Board and all stakeholders for their support through challenging times.
