• ACTis has raised two flags for Rand Water and placed two under monitoring.
• External threats to Rand Water’s executives are very concerning and likely affecting the institution’s working environment. This puts decision-making under pressure, particularly where contract awards and payments are at stake.
• Weak internal controls in procurement and finance have created an enabling environment for corruption. Authorities such as the Auditor-General of South Africa (AGSA) and the Special Investigating Unit (SIU) have reported several irregularities, some of which remain under investigation. Weak consequence management means that irregular practices are not being corrected, and officials involved may be protected.
• There are insufficient patterns to determine whether state capture is at work. This may change if more information comes to light about the influence organised criminal networks have had over contract awards. It is unclear whether such networks, having become accustomed to being favoured with awards from Rand Water, are now exerting their power in response to a new resistance from the institution’s leadership. Alternatively, they may represent a new source of influence and possible state capture, intent on extracting value from Rand Water.