Water governance: Sustainability matters more than ever

Stephen Sadie

South Africa has been pushed to the brink by the degradation and mismanagement of essential infrastructure, namely water supply and management. In Gauteng, the country’s economic hub and most populous province, residents and communities are subject to frequent and widespread water outages.

Water and Sanitation Deputy Minister David Mahlobo reports that of the five billion litres of treated water received by Rand Water, 2.3 billion litres are lost on its way to consumers, the result of unmaintained infrastructure and illegal connections. Looking more broadly, the South African Institution of Civil Engineering reports that more than 40% of water produced and supplied to over 80% of the country’s population is lost before it reaches them.  

The delivery of essential public services like water is a non-negotiable component of South Africa’s socioeconomic growth and development. For a turnaround strategy to have any impact, stakeholders and utility firms need to enshrine accountability and transparency into every process, every meeting, and every decision. With enhanced governance, South Africa can right the ship in improving service delivery and rebuilding public trust in our institutions.  

Poor procurement, planning, and oversight is poison 

Water supply and management is, like any other function of government, is susceptible to risk, exploitation, and corruption. After all, the stakes and incentives are high for all parties. Not only is it an essential service that needs to be delivered, but also a lucrative undertaking that culminates in billions of rands in procurement deals and contracts. A lack of sufficient oversight and failure to adhere to good governance and administrative due process is a recipe for disaster.

South Africa’s water crisis is also emblematic of a greater problem with oversight mechanisms throughout its municipal structures. Research shows that municipalities are saddled by corruption and maladministration with financial audit outcomes remaining poor and a failure to improve internal controls. According to Auditor-General Tsakani Maluleke, only 16% of municipalities, which only account for 19% of the municipal expenditure budget, can be trusted to spend public funds effectively.  

The situation calls for extreme interventions, but a good place to start is scrutinising and overhauling how public funding, and institutions as a whole, are subject to sound, consistent, and reliable governance practices.  

The principles of good governance 

In the face of failing systems and disintegrating public trust, public services need to be supported by professionals working in governance, legal, risk, and compliance roles and ensure all employees and stakeholders (and their actions) adhere to relevant protocols and parameters. Professionals should also always push for open reporting when a potential problem is identified, and assume a proactive approach to risk management so as to avoid a problem mutating into a greater crisis.  

Good governance in the public sector implies that officials and departments consider how they work to benefit society. This requires adherence to key principles, including:  

• Behaving with integrity, demonstrating a strong commitment to ethical values, and respecting the rule of law.  

• Ensuring openness and comprehensive stakeholder engagement.  

Taking a step further, good governance requires institutions to define the outcomes in terms of societal benefits (i.e. the provision of clean, drinking water to South Africa’s population), determine the interventions necessary to achieve the outcomes that result in those benefits, manage risk and performance through strong internal controls and financial management, and, importantly, implement practices that promote transparency and deliver effective accountability.  

By doing all of that, we create a culture of governance in our public sector, leading to its revitalisation and enhancing our ability to deliver essential services.  

A foundation of fairness, honesty, and a long-term vision

Fixing South Africa’s water crisis does not begin and end by repairing broken pipes and focusing solely on physical infrastructure. To achieve long-term sustainability, utilities and other organisations need to also prioritise their organisational structures and ensure they have the means to enact and enforce the necessary governance practices.  

At a National Water and Sanitation Indaba earlier this year, President Ramaphosa acknowledged that governance challenges and inefficiencies at various reporting entities were impacting the country, culminating in a ‘perfect storm’ where dry taps, broken infrastructure, and mismanagement of water resources at a local government level fuels growing public discontent.  

Indeed, it’s a storm that needs to be addressed urgently and decisively. Public trust can only be upheld when organisations operate with sound principles and commit to practices that reinforce accountability and transparency, as well as support them in realising a long-term, sustainable vision. With the right inputs and a focus on good governance practices, aided by experts and the support of other sectors, South Africa can set a new standard in the delivery of essential services.  

Stephen Sadie is CEO of the Chartered Governance Institute of Southern Africa