 The Department of Water Affairs (DWA) is the custodian of
National water resources, is responsible for policy and regulation of the sector.
 Has a mandate to establish Water Management Institutions
(WMI) for the development and management of water resources.
 The Chief Directorate: Institutional Oversight (IO) is responsible for overseeing the establishment and development of these institutions through the Department’s
Regional Offices, ensuring that they are viable and sustainable.
 In the absence of established CMA’s, DWA undertakes these functions.

 CMAs are established in terms of section 78(1) of the
National Water Act, 1998 (Act No 36 of 1998).
 Statutory bodies established in terms of Chapter 7 of the National Water Act and listed as schedule 3a entity under the PFMA-service delivery Public entity

 The purpose of the CMA is to delegate water resource management to the catchment level and to involve local communities in the decision-making processes.
 The intention is for water resource management to:
• meet the basic human needs of present and future generations;
• promote equitable access to water;
• redress the results of past racial and gender discrimination and;
• facilitate social and economic development

The principles guiding reform and transformation in resource management:
 The legal requirements of decentralisation and subsidiarity.
 This process moves the responsibility for resource management from DWA to the CMA
 This is done in a progressive manner

 The first stage following the establishment of the CMA is about creating legitimacy within the WMA,
 Second phase of consolidation is entered during which the
CMA is focused on building capacity and strengthening the organisation
 .
:-
.
The final phase during the evolution of the CMA is the progression to a fully functional CMA and the delegation of
responsible authority functions

The Policy Framework for the Governance and Administration of Public
Sector Institutions (October 2005) sets out corporate forms for public institutions: Legal nature of CMAs
Public Service including:
•National Government Agencies
•Provincial Government Agencies
Public Entities including:
•Stewardship and Research Entities
•Service Delivery Entities
•Regulatory and Statutory Advisory Entities
Government Enterprises including:
•Statutory Corporations and Financial Intermediaries
•State Owned Companies
•Subsidiary Companies of public entities
•State Interest Companies
Public Interest Institutions including:
Education, Welfare, Recreation Institutions and Professional Bodies

The appropriate corporate form must be informed by the purpose the risks, powers and functions of the CMA.
A distinction should be drawn between delegation of functions within DWA, and agentising the functions.
Agentising is an integral part of strengthening and improving governance, by assigning responsibility and accountability to the institution best placed to ensure efficient use of resources and effective service delivery.

• Stakeholder participation
• Required by policy and legislation
• Participation is necessary to find appropriate solutions
• Ring-fence risk
• Allows for a coherent, integrated approach to managing risk through tight controls and good governance….one key risks to manage is financial risk associated tariff setting, billing and collection.
• Access to professional, specialist skills
• important for operational management –requires moving outside the government remuneration structures.
• Public confidence in decision-making

 The national water resource strategy (NWRS) 2004
• 19 Catchment Management Agencies (CMA) one per Water
Management Areas (WMA).
o six CMAs gazetted for establishment o two CMAs currently functional: the Inkomati and Breede-
Overberg.
 The process of establishing CMAs was put on hold
• Appropriate number of institutions was investigated through project “Institutional Reform and Realignment” (IRR)

1. There is a clear legislative mandate for each institution.
2. The allocation of roles and responsibilities is clear, with minimum overlap and without gaps.
3. The institutional design embeds for effective and efficient performance
4. Sound governance
• separation of policy-making, regulation and operational roles,
• clear accountability for performance,
• absence of conflicts of interest,
• and appropriate application of skills to the governance function.
5. There is an alignment between the legislative mandates for functions and the funding of these functions.

6. Institutions are financially viable and sustainable
7. Institutions are able to attract and retain management, technical and other skills to operate effectively and efficiently.
8. There is transparency in the reporting of performance, and there are consequences for poor performance.
9. The benefits of economies of scale are realised where these are significant, balanced with the principle of subsidiary management is devolved to the lowest appropriate level to enhance local accountability

 19 March 2012, the Minister pronounced the establishment of nine CMAs.....submission signed on
23 April 2012, announced at the Budget Vote, communicated via newspapers.
 Gazetting of 9 WMA for public comment as a component of NWRS was signed on 21 May 2012.
 Gazette notices will need to be publicised within the next two weeks…. in all 9 languages
 At National level it will be communicated via Newspapers, through the DG’s office to all other Departments, national forums.
 At Regional level must be communicated via Regional offices, through existing forums and other existing platforms..all comments must be submitted to CD: IO - a sixty days

Establishment of catchment management agencies


MINISTER
PORTFOLIO COMMITTEE
ON WATER AND
ENVIRONMENTAL AFFAIRS
DIRECTOR
GENERAL
DEPUTY
DIRECTOR
GENERAL
NATIONAL STEERING
COMMITTEE
MR. NEPFUMBADA
INSTITUTIONAL
OVERSIGHT
RSC
PONGOLA
MZIKULU
RSC
LIMPOPO
RSC
BREEDE-
GOURITS
RSC
OLIFANTS
RSC
INKOMATI
TO USUTU
RSC
MZIMVUBU-
TSITSIKAMMA
PROJECT
MANAGEMENT
OFFICE
RSC
VAAL
RSC
ORANGE
PROJECT
MANAGEMENT
GROUP
RSC
BERG OLIFANTS

 Fast track development of business cases ....we have 8 from
previous process.
 Updated two business cases through IRR project
 Busy with Limpopo, Olifants and KZN existing contracts
 Require to develop Vaal, Orange, Eastern Cape require support
 Expedite engagement with National Treasury to ensure that the approval of the business cases is fast tracked
• Submit the financial viability of CMAs to National Treasury by middle of June
 Single advisory committee is required to advise the Minister on the structure and composition of all governing boards
 Submission to appoint the single advisory committee has been drafted
 AC to convene by middle July

 DDG Regions to make recommendation on who leads the
 Vaal: lead Gauteng supported by Free state
 Limpopo: Lead Limpopo and supported North West
 Olifants: Lead by Mpumalanga and supported by Limpopo
 Northern Cape: Free State and Northern Cape to support
 Provision of initial governance support to the newly established agencies and governing boards
 CMA starter pack that provides generic policies and systems to enable quicker functionality as well as provide a level of consonance in approach

The implementation will be in phases:
Phase 1
• Inkomati – Usuthu
• Breede Gouritz
• Pongola-Umzimkulu
Phase 2
• Berg-Olifants-Doorn
• Vaal
• Olifants
• Limpopo
Phase 3
• Orange
• Mzimvubu-Keiskamma

 Ensure that staff transfers take place timeously,
 Make funding available timeously and ensure 3 year revenue projections are provided to CMA so that they know what funding will be available for each of the three financial years
 Ensure that the CMA has access to WARMS from phase 1 so that they can use it to identify water users and can work on updating and improving the data

 Develop data and information protocols for CMAs to ensure that water resources data and information is compatible with DWA requirements.
 Identify any current monitoring infrastructure that does not make up part of the national monitoring system and transfer it, with the associated budget, to the CMA for WMA level monitoring.

Considerations Process Key Milestones
Institutional establishment
Finalise WMA boundaries and institutional route map
Gazetting of the NWRS
Actions
Understand institutional and legal implications
Develop priorities and route map
Timeframes
Differences between water management areas because of previous progress
Publish for comment: January – April
2012
Revise according to comments received: May 2012;
Publish in Government Gazette: June
2012
June 2012 Amend boundaries and name of CMA
(S78(4))
Gazetting of amendment of boundaries and name
Amend boundaries and name of
CMA (S78(4)) by publishing such in the Government Gazette
Ring-fencing of
WRMC revenue
Revenue ringfenced per WMA
Ring-fence revenue per WMA in the
Water Trading Entity and ensure systems are in place for easy transfer of funds to CMA
Timely transfer of funds to the
CMA is critical for its effective functioning.
January 2012 – July 2012
Develop business case for CMA
Approval of business case by NT/DPSA JEP
Initial meetings with NT/DPSA towards alignment
Develop and submit business case
List as Public Entity
Need to ensure close working relationship with NT/DPSA
November 2011 – July 2012
Stakeholder engagement
Establishment of CMA
Establishment of CMA via
Govt Gazette
Engagement with stakeholders on the changes to the WMA boundaries and the establishment of the
Breede-Gouritz CMA
Careful management of stakeholder engagement in the
Gouritz area is required to ensure that they do not feel marginalised by the more advanced processes in the
Breede-Overberg area
February – April 2012
Gazette for public comment
Take comments on Board
Gazette for establishment
Stakeholder awareness of processes critical
September 2012

Process
Key Milestones
Organisational development
Actions Considerations Timeframes
Appoint Inaugural Appoint Advisory Committee Need to create strong Advisory Committee appointed:
Governing
Board
Establish initial systems meeting of the
Governing
Board held
Board
Committees established
Advisory Committee submits recommendation to Minister
Ministerial approval of Board structure
Call for nominations in parallel with Advisory Committee work
Minister appoints Governing
Board
Inaugural meeting of the Board
Initial Governing Board training
Board charter developed, based on generic Board charter
Board Committees established
Initial internal Purchase initial financial system systems including financial, procurement and HR
Apply for permission to AG for permission to open account
Account opened
Pro-forma internal systems presented to the Board
Appoint CEO CEO appointed
Job description finalised and post advertised
Obtain approval of CEO salary
(DPSA and Minister: DWA)
Interview candidates and appoint sense of good governance June 2012; and therefore, look towards Advisory Committee makes stronger governance model than previous Boards that had a strong emphasis on recommendations to Minister:
Sept 2012
Ministerial approval of Board participation structure: Oct 2012
Minister appoints Governing
Board: Dec 2012
Initial Board Training and
Inaugural Meeting: Jan/Feb 2012
Board Charter developed: March
2012
Must ensure there are financial controls in place prior to opening of account and any funds transferred
Financial procedures and controls developed: March 2012; approved by Board by May 2012
Apply to AG for permission to open account: March 2012
Account opened: July 2012
Consider getting blanket approval for CEO posts
Financial system purchased: July
2012
Approval of CEO salary June
2012 against a range of packages Post advertised: July 2012 for large , medium and small CMAs
Interview candidates: Sept/Oct
2012
Appoint candidate: Oct 2012