
Leonard Jones Basson, a Democratic Alliance member and the committee meeting Chairperson
DWS presentation: Systemic collapse revealed

Minister of Water and Sanitation, Pemmy Majodina
“Water service collapse is not only a technical matter, but also a reflection of weak governance, corruption, and poor financial management,” says Mathye.The Drop reports identify widespread failings, including deteriorating infrastructure, inadequate maintenance, non-compliance with testing requirements, staff shortages, and high levels of non-revenue water. COGTA’s ‘State of Local Government Report’ corroborates these findings, listing 35 distressed municipalities, most of which overlap with the DWS’s list.
Interventions
To address these issues, DWS, COGTA and the Municipal Infrastructure Support Agency (MISA) are aligning support programmes. Prioritisation focuses on municipalities under Section 139 constitutional interventions, those deemed dysfunctional.Mathye outlines six options to address municipal failure, ranging from identifying distressed municipalities, implementing the Municipal Performance Turnaround Strategy (MPTS) using Section 139 interventions and constitutional amendments to remove municipal authority over water services to sector reforms introducing a utility-based model.
To counter persistent under-performance, DWS is shifting tactics by converting under-utilised Schedule 5B direct grants into Schedule 6B indirect transfers, thereby empowering implementing agents to oversee and execute projects directly. This safeguards against funds being returned to Treasury and accelerates delivery in municipalities where local capacity is weak. In more severe cases, the Department may invoke Section 63 of the Water Services Act to assume responsibility, partially or wholly, for water and sanitation functions in failing Water Services Authorities. Examples of interventions include Rand Water stepping in at Emfuleni, Amatola Water supporting Makana, and Magalies Water assisting Tshwane’s Hammanskraal. MISA has piloted indirect transfers in municipalities with a record of mismanagement, such as uThukela and Emfuleni. Other initiatives include debt relief mechanisms for municipalities owing billions to water boards and Eskom, smart metering, non-revenue water reduction, and skills development programmes such as process controller training. A water partnerships office has been established within the Development Bank of Southern Africa to facilitate blended financing and public-private partnerships.“There is no single solution,” Mathye warns, “but sustained, coordinated reforms offer the most viable path.”The backlog in water and sanitation infrastructure in the 105 municipalities is estimated at R400 billion. Majodina reports that over the past five years, DWS has transferred approximately R30 billion in infrastructure grants to the 105 municipalities. A further R10 billion is earmarked for each of the next two financial years, representing more than 80% of the Department’s municipal grant allocation. Department of Cooperative Governance and Traditional Affairs (COGTA) has provided an additional R43 billion via the Municipal Infrastructure Grant (MIG). The Department has also launched the Nationwide Groundwater Intervention Programme, aimed at unserved communities still without piped water. This involves drilling boreholes, protecting springs, and building local operational capacity, in partnership with the Council for Geoscience and MISA. In the Eastern Cape, projects cover Amathole, Chris Hani, Joe Gqabi, Dr Beyers Naude, Makana, Kouga and other municipalities. The Free State includes work in Mafube, Matjhabeng, Maluti-a-Phofung and Moqhaka. In Gauteng, projects focus on Emfuleni, Lesedi, Rand West, Midvaal and Merafong. KwaZulu-Natal has projects in all major districts, including Amajuba, Harry Gwala, iLembe, King Cetshwayo, Ugu and Zululand. Limpopo’s five district municipalities, including Capricorn, Mopani and Sekhukhune, are beneficiaries. Mpumalanga projects span Emalahleni, Lekwa, Govan Mbeki and Mbombela. The Northern Cape shows dozens of small-scale interventions, ranging from Joe Morolong to Dawid Kruiper. Some projects are complete, while others run to 2028. The North West includes work in Ngaka Modiri Molema, Dr Ruth Segomotsi Mompati and Rustenburg. In the Western Cape, projects target municipalities such as Mossel Bay, Overstrand, Saldanha Bay and Theewaterskloof. These projects demonstrate both the scale of investment and the uneven capacity to complete them on time.