Business Case forthe Pongola-Umzimkulu Catchment Management ...

Business Case for the Pongola-Umzimkulu Catchment Management Agency
Access to professional, specialist skills
Access to specialist skills is particularly important for the operational management of the
CMA, including financial management, contract management, and specialist water resource
management skills (hydrology, geohydrology, water quality, engineering, aquatic ecology,
toxicology, etc). Accessing such skills will require moving outside government remuneration
structures and developing the CMA as an employer of choice by creating an innovative,
stimulating and conducive work environment.
Public confidence in decision-making
The NWA recognizes that the ultimate aim of water resources management is to achieve the
beneficial use of water in the public interest. In doing this it is important to build confidence
amongst users that water as a resource is a public good and must be managed in such a
manner that all must benefit.
Given the complexity of water management in the Pongola-Umzimkuluwater management
area, and the importance of this area to the economy, public confidence will be improved by
demonstrating good governance through appropriate accountability and governance
structures. Separation of functions will allow DWA to act as a regulator (visibly), particularly
with regard to the regulation of tariffs, but also through setting of national norms and
standards (e.g. for water quality).
4.3 Appropriate corporate form
Based on the assessment above, various corporate forms were considered. These are
discussed briefly below.
4.3.1 Departmental programme or dedicated business unit
Based on the assessment of the rationale for the CMA, a programme within the Department
or a departmental agency are not considered appropriate. A programme is limited in its
ability to ring-fence risk and to manage relationships with stakeholders effectively and
accountably. While a departmental agency can overcome some of these problems, it also
presents challenges in terms of its legitimacy with stakeholders and other spheres of
government, and a ring-fencing risk. Moreover, managing complex risk within a
departmental agency is difficult, particularly as access to specialist skills in managing entity
risk may be limited by departmental systems and process.
4.3.2 Public entity vs. business enterprise
The public entity corporate form is suitable for functions that require the involvement of
stakeholders and experts to ensure effective and efficient delivery and where a moderate
degree of autonomy in decision-making is desirable, or functions where it is necessary to
assign decision-making to an independent juristic person in order to enhance public
confidence in the implementation of a policy framework or the provision of policy advice or
research. A business enterprise, on the other hand, is primarily focused on the provision of
goods and services in a market environment.
There are threekey reasons why creation of a public entity is preferred for the CMA:
• The CMA is a service-delivery entity performing a function of government
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