The Board of Overberg Water’s term in office was terminated with immediate effect by Water and Sanitation minister Nomvula Mokonyane last week. The department said the termination comes after a forensic investigation was carried out in March 2016 to investigate allegations of possible financial irregularities by Board members at Overberg Water. The investigative team was appointed by the department. In a report based on the findings, it showed that the Board as the Accounting Authority “may have failed to comply with its fiduciary duties to exercise utmost care to ensure reasonable protection of the assets and records of the entity, and to act with fidelity, honesty, integrity and in the best interest of the public entity in managing its financial affairs”. On 29 April 2017, Mokonyane issued a notice to terminate the term of office of the Board in line with Sections 35(5) of the Water Services Act (Act 108 of 1997) and provided the Board with 14 days to provide written reasons as to why their appointment should not be terminated.
“After considering the Board’s collective response, we are convinced that terminating the term of office is the correct and reasonable action to take given the outcomes of the forensic investigation,” Mokonyane said. She added that subsequent failure to exercise their fiduciary duties accordingly and a failure to comply with the Public Finance Management Act by failing to submit the annual financial statements of Overberg Water to National Treasury by 30 September 2016 were added findings that led to their termination.
The current acting CEO of Overberg Water, Nthabiseng Fundakubi, was also recalled from her position. The department said Mokonyane has since appointed Phakamani Buthelezi, who is current CEO of the Breede-Gouritz Catchment Management Agency in the Western Cape, as acting CEO and accounting authority of Overberg Water. “A process to appoint a new Board and permanent CEO will be expedited to strengthen governance and normalise the administrative situation at Overberg Water,” the department added.
