• ACTis has raised four flags for Amatola Water and placed three under monitoring.
• Amatola Water’s senior leadership – including the Minister and Deputy Minister of Water and Sanitation, Board Chairperson and executives – have been the subject of allegations of maladministration and corruption. The Board and the Minister’s failure to hold former Chief Executive Officer (CEO) Siyabulela Koyo accountable for misconduct, and the choice of an acting replacement with a questionable record, cast doubt on whether reform is underway.
• The lack of consequences for individuals implicated in wrongdoing, despite internal and external investigation findings, seems to have contributed to a culture of impunity at Amatola Water. Protecting implicated individuals aligns with patterns of state capture and warrants further examination.
• Weak financial and procurement controls suggest an environment in which systems can be easily bypassed for personal gain. Internal forensic and SIU investigations indicate connections between senior leadership and a specific network of favoured businesses. The extent of the corruption and financial malpractice has created an existential threat to the institution, with its status as a going concern in question.
• Mismanagement and corrupt tender awards have resulted in incomplete or abandoned projects. This has left some areas without access to bulk water supply, while others have faced severe water cuts.