| Wed 28 Sep 2022, 7:40 | | Statement by the Minister of Water & Sanitation relating to the reconfiguration of Umgeni Water and Mhlathuze Water |
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Statement by the Minister of Water & Sanitation relating to the reconfiguration of Umgeni Water and Mhlathuze Water
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 THE RECONFIGURATION OF UMGENI WATER
AND MHLATHUZE WATER- EXTENDING THE BOUNDARY OF UMGENI WATER TO
INCLUDE MHLATHUZE WATER
The Department of Water and Sanitation (DWS) has embarked on the reconfiguration of
Umgeni Water and Mhlathuze Water with the aim of improving the institutional landscape
in the water sector. The extension of the boundary of Umgeni Water to include Mhlathuze
Water to form a single Water Board in the KwaZulu-Natal Province will enable both Water
Boards to consolidate their assets and skills for key infrastructure development, increase
water supply, will assist with expanding access to unserved areas and improving service
delivery within the entire province. In terms of the Water Services Act, 1997 (Act No. 108
of 1997), Section 28(2), I am required to consult with relevant stakeholders.
This letter therefore is intended to inform you about this process and to solicit your support
in implementing the reconfiguration process in terms of Section 28 of WSA, as follows:
• Extending the boundary of Umgeni Water to include Mhlathuze Water. Mhlathuze
Water will be disestablished and cease to exist as a separate entity.
• Mhlathuze Water to be included as a going concern into Umgeni Water. Umgeni
Water will be the receiving entity (staff, assets, and liabilities of Mhlathuze Water).
• A gazette notice to be issued to extend the boundary of Umgeni Water to include
Mhlathuze Water to form a single Water Board in the KwaZulu-Natal Province Water.
In this regard I am confident that my Department has developed a robust process that will
assist in mitigating and managing the risks. My Director-General will appoint an
independent person to project manage the process of extending the boundary of Umgeni
Water to' include Mhlathuze Water. We are confident that issues, such as the loans and
creditors will be managed during this process.
The due diligence report shall form the basis of our engagement in terms of the
requirements of Section 38(m) and Section 54(2) of the Public Finance Management Act,
1999 (PFMA).
I hope you shall find the above to be in order and would appreciate your support and
comments on the matter in terms of Section 72(a) and (b) of the Water Services Act, 1997
(Act No.108 of 1997). It would be appreciated if you could submit written comments within
10 days from the date of this letter for the attention of Mr S Letsholo at
LetsholoS@dws.gov,za '
Kindly inform your executive of the developments.
Yours sincerely
28 September 2022
Debt Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 28-09-2022 07:40:00
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