Department of Water and Sanitation

• ACTis has raised one flag for DWS and placed three under monitoring.

• DWS is showing signs of improvement in addressing weaknesses such as inadequate internal controls, irregular expenditure and irregular contract awards. However, the WTE remains a key risk area, with weak controls, poor financial record-keeping, uneven consequence management, and a failure to implement an effective procurement system. The Department’s move to transfer WTE to a new agency with its own governance structure may be a positive reform, especially given the substantial funding and projects it oversees. This will depend on whether legacy issues are properly addressed and do not perpetuate irregular practices within the new entity.

• No patterns of state capture or corruption have been detected, but monitoring contract awards and senior official appointments remains important.

• In the provinces hardest hit by water crises, water infrastructure has largely failed. Only 69% of residents in Limpopo and 75% in the Eastern Cape have access to water. The current water crisis in Gauteng (which has prompted an inquiry by the South African Human Rights Commission) is driven by failing infrastructure and wastewater treatment works, as well as water losses from leaks and illegal connections.