Business Case forthe Pongola-Umzimkulu Catchment Management ...

More documents

Recommendations

Info

Business Case for the Pongola-Umzimkulu Catchment Management Agency • The CMA does not directly provide goods and services in a market environment but it is dependent on revenue from water users for the delivery of the services • The CMA needs to involve stakeholders in the management of water resources and to build public confidence in its implementation of water resources policy. It is therefore proposed that the CMA be established as a national public entity and listed under Schedule 3 (a) of the PFMA because it: • Would be established in terms of National legislation • May be partially funded from the National Revenue Fund • Would be accountable to Parliament • Would not be authorized to carry out on a business activity providing goods and services in a market environment. 4.3.3 Associated Attributes of the Public Entity Following the Governance Framework, the attributes of a public entity (for service delivery) are presented below, and form the basis for the CMA, particularly in terms of governance, organisational and financial arrangements. 4.3.3.1 Legal issues • Legal status: the CMA is a separate juristic person in terms of the NWA. • Establishment: created in terms of the National Water Act (s78(1)) by the Minister of Environmental and Water Affairs • Dissolution: dissolved in terms of the National Water Act (s88(1)) by the Minister of Environmental and Water Affairs. 4.3.3.2 Accountability relationships • Political accountability: the Minister, as the Executive Authority, is accountable to Parliament and represents government’s policy and shareholder interests. The Governing Board is accountable to the Minister, and the Minister should develop a service level agreement with the Board. • PFMA statutory accountability: the Governing Board is the Accounting Authority in terms of the PFMA. • Reporting arrangements: the CMA prepares a separate annual report and annual financial statements, which are sent to Minister via the accounting officer of DWA. The Minister tables these documents in Parliament. 4.3.3.3 Governance arrangements • Appointment of Board: the Governing Board is appointed by the Minister, taking cognizance of the recommendations of the Advisory Committee (s81(1) of NWA). The Minister determines performance criteria for the Board. • Dissolution of the Board: The Minister as the Executive Authority • Replacement of Board members: The Minister as Executive Authority appoints alternative members to the Board where Board members resign or are removed before completion of their term of office. Board members are removed by the Minister under s83(1) of the National Water Act. Alternatives are appointed for the remainder of the term of office. • Appointment of CEO: The Governing Board appoints the Chief Executive Officer (with the approval of the Minister) and determines performance criteria and Department of Water Affairs 20
Business Case for the Pongola-Umzimkulu Catchment Management Agency assesses performance of the CEO. The Minister is empowered to remove the CEO after consultation with the Board. 4.3.3.4 Financial arrangements • Tabling of plans: The Governing Board must approve and submit a strategic plan to the Minister. • Submission and approval of budgets: The Governing Board approves the budget and submits it to Minister. • Funding/ Budget: cost recovery (water charges), grants-in-aid, donations and DWA subsidies / financial aid. • Spending autonomy: The Entity is autonomous within the limits of relevant legislation and agreements. • Pricing: By the Entity, in line with the national Pricing Strategy on Raw Water. • Borrowing powers: the CMA will need specific approval from the Minister of Finance for borrowing, but should only require overdraft facilities for working capital. • Surpluses/dividends: The Entity may not make a profit. • Accounting basis: accrual-based GAAP. 4.3.3.5 HR arrangements • Human resource regime: The CMA will develop its own HR regime within DWA CMA Guidelines and aligned to the framework prescribed by DPSA. It will be responsible for determining positions, job evaluations and for appointing and dismissing staff. • Wage determination: The CMA will determine salaries within the DWA CMA Guidelines and aligned to the framework prescribed by DPSA 4.3.3.6 Powers of the entity • Procurement: Procurement will done within the PPPFA and the CMAs own governance rules 5 Legal process 5.1 Introduction The establishment of the Pongola-UmzimkuluCMA is different in nature from the original establishment of the Thukela, Mvotito Umzimkuluor Usutu-MhlatuzeCMAs in the sense that the three individual CMAs have already been established. This requires some consideration of the appropriate legal process to be followed. An examination of the National Water Act has been undertaken, and the legal issues pertaining to the process are set out below, as well as the appropriate process to be followed to establish the Pongola-UmzimkuluCMA. 5.2 Legal requirements The overriding imperative of the NWRS is that the nation’s water resources are an indivisiblenationalasset to be managed in an equitable, sustainable, socially, economically and environmentally optimal manner for the benefit of society. Furthermore,The Minister, DG, organs and WMI, must give effect to the NWRS when exercising any power or duty under the Act. Department of Water Affairs 21
Page 1 and 2: Business Case for the Pongola-Umzim
Page 19: Business Case for the Pongola-Umzim
Page 71 and 72:
Business Case for the Pongola-Umzim
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83:
show all

Business Case forthe Pongola-Umzimkulu Catchment Management ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?