eThekwini Municipality has taken the first step towards boosting service delivery and eliminating water supply challenges in the municipality by transforming the City’s water unit into a business entity.
The proposed change means the water unit will be in the position to be self-reliant and not be “slowed down” by other municipal units in the execution of its functions.
This initiative is part of broader changes proposed to enhance the municipality’s operational structures.
The idea of transforming the water unit into a business entity was first presented during an executive committee (exco) meeting and council meeting several days ago.
However, councillors expressed concerns and called for more time to be briefed on the details of the proposal.
Last week, councillors participated in a workshop focused on the proposed changes. “The Mercury” understands from councillors who were part of the workshop that a special full council meeting is expected to be held on Thursday, where the matter is anticipated to be finalised.
The proposed change is part of a broader initiative by the National Treasury aimed at enhancing the performance of Trading Services across various municipalities to ensure they operate effectively. Water and electricity form part of trading services.
“The Mercury” recently reported on changes in the electricity department, revealing that the City could soon impose an infrastructure “levy” for all customers with electricity infrastructure connected to their homes, regardless of whether they use power from the City or rely on renewable energy sources.
It had been proposed that the water unit function as a municipal entity similar to the ICC; however, this idea was met with resistance from councillors who insisted on maintaining oversight over the unit.
DA leader and councillor Thabani Mthethwa stated: “The most important aspect is that, in light of all the challenges that the unit is facing, the councillors will have oversight of the unit. We believe that this change will provide the capacity needed to address many of the challenges we face.”
Democratic Liberal Congress leader Patrick Pillay expressed support for the changes, stating: “This could reduce the cost of water in the City, as there would now be a greater emphasis on addressing the issue of non-revenue water, which is costing the City a lot.”
He added that while they welcomed the restructuring process, the ultimate success depends on the capacity and commitment of City officials to perform their duties effectively.
IFP councillor Mdu Nkosi preferred the water unit to be a business unit rather than an entity.
“If you look at how the ICC and Ushaka Marine Theme park operate as entities compared to Moses Mabhida, which is a business unit, the entities have their own board of directors and only come to the City to present certain reports. We believe it is much better if the water unit is a business unit because we can maintain closer oversight.”
Nkosi, who is also the chairperson of the trading services committee, which has oversight of the water function, mentioned that every Friday the mayor holds meetings on water and sanitation issues.
“If it were a business unit, we would be able to get (work) close to the unit.”