47

Our Specialist Services Division focuses on expanding the business of Rand Water outside of our core business of bulk water supply.

During the year under review, Specialist Services undertook the following projects:

• Ghana Urban Water Management Contract

Client: Ghana Water Company Limited (GWCL)

Budget: US$103million for 5 years

Funder: World Bank

Project Duration: June 2006 - June 2011

In December 2004, the Government of the Republic of Ghana issued an invitation for a Bids-Management Contract for the provision

of services to the urban water sector in that country. This invitation followed a general notice that Ghana had secured

USD 103 million from the International Development Association to fi nance the Project. The intent was to apply part of the grant to a

Multi-year Management Contract for the provision of services in the urban water sector. For this project which commenced on the 5

June 2006, Rand Water through our then subsidiary Rand Water Services (Pty) Ltd entered into a joint venture agreement with

Vitens (Dutch-based company).

Our Specialist Services

After decades of expansion to meet the challenges in infrastructural development and population growth, we are ensuring that we are ready for the demands of 2020 and beyond by focusing on infrastructure refurbishment and development.

48

• Technical Assistance to the Democratic Republic of the Congo

Client: Department of Water Affairs

Budget: R22 million

Funder: African Renaissance Fund

Project Duration: 18 Months (from June 2011)

Benefi ciary: REGIDESO

The Government of South Africa has continued to strengthen its relationship with the Democratic Republic of the Congo.

President Jacob Zuma and a business delegation from South Africa visited the Democratic Republic of the Congo (DRC) in June

2011 for the signing of the Binational Co-orperative agreement between the two countries. A key outcome of this agreement is to

improve the water service delivery in the DRC. The African Renaissance Fund has allocated a budget of R22 million for this project

and the Department of Water Affairs appointed us as the Implementing Agent.

The key objectives of the project are specifi cally to increase pumping capacity of the Water Plants (replace old pumps and motors),

increase reliability of supply, reduce water losses, increase availability of pumps, improve water quality in the prioritised areas and

enhance equipment sustainability. We have prepared a business plan in collaboration with REGIDESO for implementation in the

2011 - 12 fi nancial year.

Although most infrastructure expenditure work takes place in the form of augmentation to meet the growth in demand, other projects are initiated because of the need to reduce operations costs, improve treatment processes, enhance plant safety or extend the life of the existing assets.

49

• Rehabilitation of the Gamtoos Project Phase II

Client: Department of Water Affairs

Budget: R 49 million for 2010 - 11 fi nancial year

Project Duration: From October 2006 to 2011

Benefi ciary: Agricultural Community

We were appointed as the Professional Service Provider (PSP) to develop a rehabilitation strategy for the Gamtoos Irrigation Scheme

(Eastern Cape) in October 2006 by the Department of Water Affairs. Our appointment focused on the assessment of the condition of

the irrigation scheme, which was followed by the rehabilitation of the high risk elements of the system. The Gamtoos Main Conveyance

system is approximately 65 kilometres long and conveys raw water from the Kouga Dam to Loerie Dam. It was constructed in the 1960s

and comprises open canals with a total length of 34,8 kilometres; covered canals; 23 tunnels totalling 11.2 kilometres and 29 siphons

totalling 15.7 kilometres. The Loerie Dam acts as a 'balancing' dam at the end of the system. The Valley has a GDP of R700 million per

annum and is major source of agricultural products including citrus, vegetables and dairy products. The scope of our work included a

detailed condition assessment of the Scheme in terms of the systems elements structural integrity, as well as external environmental factors.

We utilised various specialised technologies such as Thermal Imagery and Eddy Current Scanning as part of the condition assessment tools.

We conducted risk profi ling on the system elements based on the probability of occurrence and severity of impact. This resulted in ranking

and prioritisation of the rehabilitation of the system elements.

The project was completed and handed over to the Department of Water Affairs in 2011. The total CAPEX budget for the 3 year project

was approximately R223 million.

• Condition Assessment and Rehabilitation of the B7 Pipeline

Client: Rand Water

Budget: R 78.4 million

Project Duration: May 2011 to August 2011

The project scope included; design, condition assessment and construction supervision of 25 kilometres of the 46 kilometres length of the

B7 pipeline, (the pipeline consists of a 25km pre-stressed concrete section) with the objective of improving the integrity and performance

of the pipeline.

The B7 pipeline is a 46km steel and pre-stressed concrete pipe. It is made up of a 25 kilometres, 2.1m internal diameter (ID) pre-stressed

concrete section laid in 1972 and 1973 between the Daleside reservoir and the Eikenhof pumping station. The steel section of similar

diameter was laid between Zuikerbosch and the Daleside Resevoir to complete the 46 kilometres.

Project implementation included;

• Eddy Current Scanning and inspections to determine the condition of the pipeline.

• Supply, launching and welding of pipes, for the 3.58km of slip lining.

• Supply and installation of specialised rubber seals, wide joint sealing.

• Longitudinal and circumferential crack repairs.

• Installation of new air valves and rehabilitation of existing chambers.

50

• Removal and Prevention of Struvite Build in Waste-Water Pipelines

Client: Johannesburg Water

Budget: R 200,000.00

Project Duration: Will commence in the 2011 - 12 fi nancial year.

Johannesburg Water has partnered with Rand Water and a Memorandum of Understanding (MoU) exists with respect to the

implementation of new and innovative technologies and solutions in the water and sanitation sector with the objective of improving the

current operations of Johannesburg Water. A key and urgent project which has been identifi ed by Johannesburg Water, is the removal

and prevention of Magnesium Ammonium Phosphate build-up (struvite) in their wastewater pipelines. The formation of struvite occurs in

the Biological Nutrient Removal (BNR) plant at Olifantsvlei Wastewater Treatment Works which is an anaerobic treatment plant.

Rand Water has been requested by Johannesburg Water to develop innovative processes for the removal of struvite using chemical

treatment with the ultimate objective of implementing it on their existing network on a larger scale.

The Specialist Services Division and the Scientifi c Services Division of Rand Water will work in collaboration with Johannesburg Water

to design and develop a solution for the removal of struvite from waste-water pipelines.

• Investigate Low Water Supply Pressures

Client: Joe Gqabi District Municipality

Budget: R 6 million

Project Duration: May 2011 to November 2011

Rand Water has been appointed by Joe Gqabi District Municipality as an implementing agent to investigate and resolve low water

supply pressures in Aliwal North. Our work includes designing a feasibility study, planning and design and implementation of the

construction work.

The Joe Gqabi (previously Ukhahlamba District Municipality) is the Water Services Authority in the north western region of the

Eastern Cape. It has an area of jurisdiction that includes four local municipalities. The District Municipality appointed Rand Water

for support in resolving the existing low water supply pressures. During the meeting held in early March 2010, the representatives of

the two municipalities explained the background and need for an improved water pressure, possibly via an elevated water tower.

A new residential area was also to be developed close to the Municipality's existing Springs Reservoir site which is at nearly the

same level as the existing reservoir. Low water pressure was identifi ed as a key challenge on this project, as some households

were experiencing periods with no, or low water supply, when the reservoir was at a low level during peak demands. Furthermore,

additional housing in the area was also being planned for by the Municipality. An initial budget of R3 million was allocated to

appoint Rand Water for the investigation work during 2010 - 2011. After the investigative works, the revised budget for the project

has been estimated at R4.5 million.

51

• Supply and Installation of Mag Flow Meters

Client: Nelson Mandela Bay Metropolitan Municipality

Budget: R 1.1 million

Project Duration: August 2010 to November 2010

The scope of our work included the supply and installation of magfl ow meters on two critical lines viz. the Emerald Hill Rising Main

(600mm Internal Diameter) and the Airport Rising Main (300mm Internal diameter). The critical aspect of the project was the removal

of a section of an existing pipeline and for installing a replacement rig.

• Operations and Maintenance of a Pipeline at Sasol in Secunda

Client: SASOL

Budget: R 336 000.00

Project Duration: February 2011 to January 2012

Rand Water has been involved with the design, construction supervision and operations and maintenance of a water pipeline to

the SASOL plant in Secunda. This project ended on 31 January 2011, but has been extended for an additional year. Rand Water’s

revised role in the project is to operate and maintain this bulk water pipeline on behalf of Sasol.

• Operations of the Grootvlei Raw Water Treatment Plant

Client: Eskom

Budget: R 10.6 Million

Project Duration: September 2010 – August 2013.

The Grootvlei Raw Water Treatment Works purify water from the Vaal Dam and pump it to the Grootvlei Power Station by means of a

45 kilometres buried pipeline. This water is treated at the Power Station and is used during its cooling processes.

The initial three year contract which included maintenance, was awarded to Rand Water in January 2007. At the end of that

term, Eskom advertised the tender for operations only, and Rand Water was offered the contract for a further three years. The new

Management Contract commenced on 1 September 2010 and will run until 31 August 2013.

• Sector Support Services

Rand Water continued to support Government in its national priorities to improve service delivery. The Department of Cooperative

Governance and Traditional Affairs (COGTA) appointed Rand Water in April 2011 to be an implementing agent for specifi c

programs. A budget of R8million was allocated to this Implementing Agent Agreement for the 2011 - 12 fi nancial year of COGTA.

Our work will entail the provision of resources to support Municipalities in the areas of Municipal Infrastructure planning funding and

development, and operation and maintenance of water scheme s.

52

Acid mine drainage is the fl ow, or seepage, of polluted water from old mining areas. Depending on the area, the water may contain toxic heavy metals and radioactive particles. These are dangerous for people’s health, as well as plants and animals. Our Bulk Sanitation Services works in partnership with a number of local municipalities to address acid mine drainage, as well as implementing wastewater maintenance and effl uent monitoring programmes.

During the year under review, the decanting of acid mine

drainage into the waterways within our area of supply received

signifi cant local and international media coverage. Acid Mine

Drainage (AMD), refers to the outfl ow of acidic water from

(usually abandoned) metal or coal mines. A Rand Water affi liated

trade union UASA, through the Federation of Unions of South Africa

(FEDUSA), lodged a formal complaint with South Africa’s National

Economic Development and Labour Council (NEDLAC) on the matter.

Depending on the area where the decanting occurs, the water

may contain toxic heavy metals and radioactive particles.

These are dangerous to human health, as well as plants and

animals, and pose serious threats with respect to possible sinkhole

formation and obviously the pollution of receiving streams.

The government’s Inter-Ministerial Task Team has already released

its technical report on this matter wherein it outlines the activities for

the implementation of short-term solutions.

Environmental activists have also voiced their concern with the

potential association of acid mine water and the high number of

mining applications for new coal mines to feed Eskom’s increased

demand. Since most of the applications are made for mines to be

established in the upper reaches of our Vaal River catchment area,

it is a source of concern for us.

The contamination of South Africa’s water sources with raw

sewage is a national concern, and this was highlighted by the

release of the Department of Water Affairs’ 2010 Green Drop

Certifi cation Report. The Report indicated that only 5% (40 out of

the 821 assessed) of municipalities in the country achieved the

Green Drop certifi cation.

The Department awards Green Drop certifi cation to municipalities

that have complied with 90% of the criteria set for wastewater

management.

Our work in the Bulk Sanitation sector is a signifi cant expansion within the water sector, allowing us to provide sanitation service solutions to water service authorities and institutions within and beyond our area of supply.

Our Preparations for Expansion

53

The Department of Water Affairs commended us on the quality of work in refurbishing and commissioning the Brugspruit Water Pollution Control Plant; and said that our services contributes to the alleviation of poverty and unemployment.

Our partnerships in this regard with municipalities and Department

of Water Affairs have provided opportunities to address the

sanitation challenges so that our country’s environmental assets and

natural resources are sustainably protected for all South Africans.

Our Bulk Sanitation services are sanctioned by the Water Services

Act No 108 of 1997 and include; assessment of wastewater

treatment plants and providing site specifi c recommendations

to municipalities to ensure effl uent compliance to Department of

Water Affairs’ Green Drop Certifi cation audit; the management

and maintenance of the wastewater treatment works; capacity

building and the training of process controller; industrial effl uent

monitoring programme; refurbishment and process upgrade of

water and wastewater treatment works; the management of the

pump station; and the refurbishment of Acid Mine Drainage.

Our key Bulk Sanitation projects during the year under review

were rendered both within and outside of area of supply;

Emfuleni Local Municipality

Rand Water entered into a 5 year partnership with the Emfuleni

Local Municipality for the operation and maintenance of its

sewage pump stations and three of its Wastewater Treatment

Plants, capacity building, implementation of Industrial Effl uent

Monitoring Programme (IEMP) and process upgrades. These

interventions have resulted in an improvement in effl uent

compliance of the wastewater treatment and their compliance

to Green Drop Certifi cation requirements. Rand Water also

established an Industrial Effl uent Monitoring Programme (IEMP)

where the activities of ‘wet’ industries are assessed, categorised

and properly billed by using the municipal by-laws as a regulatory

tool in order to contain the levels of effl uent being discharged into

the municipal sewer networks.

We have already observed that the implementation of the IEMP

is yielding positive results with the majority of the industries in

Emfuleni making efforts to comply. The organic loads discharged

by industries have decreased signifi cantly by 19% for the

2010 - 2011 fi nancial year as compared to that of the

previous year.

A decrease in the percentage of uncontrolled raw sewage

spillage into the Vaal River from the sewer pump stations has also

been observed. This is largely because of our recommendations

contained in an implementation plan that included the

refurbishment of aging pipelines, valves and pumps at the critical

pump stations in the Vereeniging area. We also provided stand-by

vacuum tanker services and maintenance personnel for the pump

stations, should the need arise, to react on an emergency.

Emfuleni Local Municipality, out of 12 municipalities that were

assessed in the 2010 - 2011 Green Drop audit in Gauteng, was

ranked in position seven with respect to its compliance.

54

We have been re-appointed to operate and maintain Brugspruit where we remain committed to providing solutions against the threat of acid mine drainage.

Thembisile Hani Local Municipality

Our partnership with the Thembisile Hani Local Municipality to

provide bulk sanitation services began in 2009, and included

the provision of operational, maintenance and capacity building

services to its Tweefontein Wastewater Treatment Works.

A highlight for us in addressing the skills shortage that existed at

the municipality, is that our Rand Water Foundation appointed

four local unemployed Science-Engineering graduates at the

Wastewater Treatment Works to be trained and capacitated as

process controllers.

The need for a Regional Sanitation Scheme in the Vaal

We have noted that there is a need for a regional sanitation

scheme in the Vaal region of Gauteng. The current over burdened

hydraulic capacity at the Sebokeng Wastewater Treatment

Works in Emfuleni Local Municipality, (operated and maintained

by ourselves and the Municipality) and that of the Meyerton

Wastewater Treatment Works at the Midvaal Local Municipality, is

making it extremely diffi cult for the individual treatment systems to

meet their legislative requirements and their adherence to Green

Drop Certifi cation compliance.

The latest Green Drop audit results indicated a distinct variance in

compliance by the two plants. Even though there are improvements

from the previous audit, Rand Water stressed that urgent

interventions are necessary in order to address the non-compliance

of effl uent discharge, as well as the need for technical capacity to

be developed by the two municipalities.

During the year under review, we undertook a feasibility study on

behalf of the Midvaal Local Municipality to examine the effi ciency

of its Meyerton Wastewater Treatment Works. The outcome of our

study, which included a statistical analysis of raw sewage disposal,

and analysis of the existing wastewater treatment infrastructure,

made recommendations among others, for a signifi cant extension to

the plant.

Following our recommendations made to the Emfuleni Local

Municipality in 2009, which included the upgrading of the

Sebokeng Wastewater Treatment Works in order to improve

hydraulic capacity, we can report that design work for its upgrade

has reached an advanced stage. During the year under review,

we were also appointed by Emfuleni as the Project Manager to

oversee an Environmental Impact Assessment of the upgrade of its

Sebokeng and Rietspruit Wastewater Treatment Works.

55

Brugspruit Water Pollution Control Plant (Acid Mine

Drainage Neutralisation Plant)

In September 2008, we were appointed by the Department of

Water Affairs to refurbish and commission the Brugspruit Water

Pollution Control Plant in Mpumalanga. The scope of our work

included the replacement of all the Plant’s electrical and mechanical

equipment, its civil structures, and commissioning the plant to its full

operation.

The Plant was successfully refurbished and commissioned in August

2010. The Department of Water Affairs commended Rand Water

saying “the quality of its work that enabled us to achieve our goals

of protecting our water resources and providing the required water

services to our communities, thereby contributing to the alleviation

of poverty and unemployment”. We have subsequently been re-

appointed to operate and maintain Brugspruit where we remain

committed to providing solutions against the threat of acid mine

drainage.

Moqhaka Local Municipality

Following our assessment of its water and wastewater treatment

plants in January 2010 at the Moqhaka Local Municipality in

the Northern Free State, we were appointed as Service Provider

for the refurbishment of mechanical equipment at its Kroonstad

Wastewater Treatment Plant. Our work was completed in

December 2010 and formally handed back to the Municipality.

An important aspect of our work was to establish measures that

would minimise the community’s exposure to health hazards due

to the non-compliant discharge of effl uent into the Vals River,

which also posed an environmental threat. At all phases of our

operations, we employed the services of local companies and

workers in order to create jobs, address poverty and to contribute

toward local economic development.

eMalahleni Local Municipality

In April 2010, the eM alahleni Local Municipality in Mpumalanga

approached us to assist with the challenges it was experiencing

with respect to water services, most notably for the refurbishment of

its Klarinet 2&3 and Bush sewer pump stations. The scope of our

work included the re-instating and re-furbishment of all damaged

and missing mechanical and electrical equipment as well as the

re-building of civil structures and installation of palisade fence.

At the close of our assignment in March 2011 we had refurbished

all the sewer pump stations utilising local service providers most

notably for the cleaning and removal of the sludge from the pump

stations. The supply chain management of electrical, mechanical

and civil materials done locally in order to address job creation.

From a health perspective, residents from the Municipality’s

adjacent Klarinet 3 Township are no longer exposed to the

negative effects of sewage spillage as a consequence of the

intermittent operation of the sewage pump station. The Department

of Water Affairs also appointed Rand Water for the refurbishment

of the Municipality’s Riverview Wastewater Treatment Works.

The project commenced in January 2011 and we anticipate to

be completed by the end of August 2011. The major goal of the

project is to minimise the discharge of non-compliant fi nal effl uent

to the Olifants River.

The quest for innovation

We are engaged with a Finnish-based wastewater treatment

technologies company on research to improve wastewater

effl uent quality through the introduction of tested technologies

and chemicals. These technologies have been proven to reduce

odour and microbiological pollution when they are used at

wastewater treatment plants. We are also in talks with a Japanese

based company on innovative mechanisms to address acid mine

drainage at the eMalahleni Local Municipality. This is with a view

to re-using the effl uent from the Brugspruit Acid Mine Drainage Plant

for industrial and potable water use. We anticipate installing a

pilotplant later this year which will be operational for at least fi ve

years.

Rand Water conducts routine maintenance at the Brugspruit Water Pollution Control Plant.

56

We are committed to addressing the imbalances of the past, not

only with regard to our human resource processes, but also in our

commercial equity priorities.

Our Supply Chain Management Policy is based on the Broad

Based Black Economic Empowerment Act and the Department of

Trade and Industry’s Code of Good Practice. The Policy is aimed

at the inclusion of previously disadvantaged individuals on to the

supplier base for goods and services. It also allows for the setting

and reviewing of targets to ensure that progress is made toward

the organisation’s BEE targets.

We have developed governance processes and strategies to

ensure excellence and integrity in supply chain management.

During the year under review we again exceeded the targets we

set for ourselves with regard to strategic sourcing.

We set ourselves a BEE target of 80% with a stretch to 83%,

and we attained 91%.

Our Supply Chain Management Policy strives to:

• Provide an appropriate acquisition process for

the supply chain management of all goods and services.

• Ensure that the supply chain management process is fair,

transparent, equitable, competitive and cost effective.

• Promote the objectives of the Commercial

Equity policy.

• Ensure that the supply chain management processes

comply with the legal framework that governs

Rand Water.

We consider transformation as an essential element of our business, which in itself is integral to the development of the country.

Our Supply Chain Management Process

Rand Water is an organ of the state and is governed by the legislative framework of South Africa as determined and enacted by the South African Government. Our Supply chain management Policy is in line with government’s objectives for supply chain management and serves to assist Rand Water in the smooth implementation of supply chain management practices. Here, Hein du Preez, Mxolisi Dlamini and Prags Govender from our Scientifi c Services Division consult the Policy before they commence with the supply chain management of chemicals, maintenance and effl uent monitoring programmes.

57

Group Forensic Services

Rand Water’s Group Forensic Services is an independent

assurance function established by Rand Water’s Management

and Board to identify, prevent and report on white collar crime

risk areas. The Division is also mandated to investigate any

irregular and potentially criminal conduct; non-compliance to

policy procedures; and to assist with the prosecution of identifi ed

offenders with a view to recover identifi ed losses.

Group Forensic Services is also responsible for educating

management and staff in respect to their role in the effective

combating of fraud by creating awareness of the potential of

white collar crime. The Division is also responsible for promoting

the ‘Rand Water Code of Ethics’ and for ensuring awareness

levels are raised in order to decrease fraud risk exposure in Rand

Water. In this regard, awareness sessions are held, and articles

are published using our internal communication tools along with

induction sessions for all new staff members.

During the year under review 49 investigations were launched

following reports of fraud, corruption and other white collar crime.

The Division completed twelve audits into various processes in

order to pro-actively identify white collar crime risk exposure, and

also introduced preventative control measures to reduce Rand

Water’s fraud risk exposure.

Pro-Active Forensic Audits, in accordance with the Fraud Prevention

Plan focused on the following:

• Conducting high level Forensic Audits to

identify fraud and crime risk that departments

are exposed to.

• Identifying possible irregularities and ensuring

compliance to relevant policies and procedures.

• Identifying and preventing white collar crime

in management procedures (e.g. orders,

deliveries, collusion, falsifi cation of data, etc.)

• Preparing and initiating fraud prevention actions.

The outcomes of audits are reported to the relevant structures for

implementation.

The Division also conducts forensic reference verifi cation checks on

certain category staff members before the Strategic Human Capital

portfolio makes formal offers of employment to potential candidates.

A total of 340 new staff reference checks were performed during

the period July 2010 to June 2011.

The Division also undertakes vendor reference checks on new

vendors, on behalf of our Supply Chain Management division,

in order to ensure that any prospective suppliers of goods and

services declare all relevant information before engaging with the

organisation.

A total of 704 new Vendor reference checks were performed

during the year under review.

The Division also developed and introduced Rand Water’s

Fraud Prevention Plan, a strategy that is approved by National

Department of Treasury. The Plan will be fully implemented in order

to enhance Rand Water’s reputation as a responsible, ethical

corporate citizen.

Rand Water has a dedicated Fraud Hotline - 0800 212 364 which

is managed by an external service provider that allows for staff,

contractor and suppliers as well as members of the public, to

anonymously report irregularities that will be attended to by the

Group Forensic Division, or other management structures.

Internal Audit

In recent years, internal audit processes have internationally

undergone signifi cant changes with regard to how these audits

should be undertaken. Most notably, there has been a visible

move from process-based audits to ones that are risk-based,

while also embracing the key principles of governance and risk

management. Rand Water’s Internal Audit unit is considered critical

to the organisation and has an independent appraisal function

established to evaluate the adequacy and effectiveness of our

controls, disciplines, systems and procedures in order to reduce

business risks to acceptable and cost effective levels and to ensure

the achievement of the organisation’s objectives.

The head of Rand Water’s Internal Audit unit reports functionally

to the Audit Committee, and administratively to the Group

Governance Executive, and also attends the meetings of the

Board’s Audit Committee. He also attends the meetings of the PIC

by invitation.

58

To deliver value added service at Rand Water, the Internal Audit

unit has found it imperative to emphasise the importance of

differentiators rather than focusing exclusively on qualifi ers.

Qualifi ers are the standard audit processes internal audit must

accomplish daily. These include assurance work, audit reports, work

paper documentation and training and development. Differentiators

push the internal audit team to strive for excellence and underscore its

ability to deliver distinctive value to the organisation.

We have a formal charter in place to regulate the functions of

the Internal Audit unit, as well as a detailed audit plan based on

risk assessments and issues raised at the Board, the Audit sub-

committee and Portfolio Integrating Committee (PIC) meetings.

The Internal Audit unit has focused on the following key issues,

which are championed by the Board and the Portfolio Integrating

Committee (PIC), which insisted on a more tangible demonstration

of the performance of Rand Water’s Internal Audit unit:

• Focusing on client management, to include

knowledge sharing and fostering partnerships

with line managers, and returning the

ownership of controls to management.

• Re-directing its processes from detection

to prevention; and identifying solutions to

challenges.

• Focusing on a risk-based approach with its

audit processes.

• Adding value to Rand Water’s organisational

objectives, strategies, risks and corporate

governance priorities.

• Greater emphasis on technology, i.e.

automated work papers, computer assisted

audit software, etc.

• The adoption of a risk-based plan and

the importance of co-operation with other

assurance providers.

The Internal Audit unit has undertaken the following processes

amid the evolving enterprise risks and recession to add

strategic value to the organisation:

• Linking the organisation’s strategic objectives

and value-drivers to those that fall within the

scope of internal audit.

• Responding to stakeholders’ expectations

of internal audit, and the priorities of the

Board, the Audit Committee and the Portfolio

Integrating Committee (PIC).

• Identifying ineffi cient processes and eliminating

routine low-value audits.

• Regularly reviewing the updated internal audit

plan together with the implementation of

cost-reduction measures with key stakeholders

to further improve support for internal audit

processes.

• Maintaining the alignment with the changing

risk profi le of Rand Water.

• Attracting and retaining internal audit human

resource talent and increasing the business

and operational knowledge of staff.

• Leveraging technology to optimise audit

operations.

Rand Water’s Internal Audit unit is considered critical to the organisation and has an independent appraisal function established to evaluate the adequacy and effectiveness of our controls, disciplines, systems and procedures

59

Corporate Communications

Rand Water’s Corporate Communications division is responsible for

internal and external communication. During the year under review,

the department has continued to support the Board and the PIC, and

has added value in raising the profi le of the organisation. This was

achieved by way of events, publications, conferences, exhibitions,

stakeholder engagement, and the content management of the Rand

Water website and intranet.

Corporate Communications also manages our relationships

with local and international media houses. It has provided

support to other divisions within Rand Water, by means of event

management, international liaison, national, provincial and

local government engagement, the provision of information and

corporate gifts for key stakeholders.

During the year under review, we have developed a media

Relations Strategy that advocates for the pro-active engagement

During the year under review, our Water Wise Education Team continued their advocacy work with the Water Wise message

through a range of educational and entertaining activities. The unit successfully established partnerships and strengthened existing

ones with the Johannesburg Zoo, Johannesburg City Parks, South African National Biodiversity Institute (SANBI), Birdlife Africa,

Gauteng Department of Agriculture and Rural Development (GDARD), Sci-Bono Discovery Centre, South African National Parks

(SANParks) and the Federation for a Sustainable Environment (FSE). These partnerships will ensure that the Water Wise message

spreads to as many people as is possible.

Our Approach to Water Demand Management

60

with the media. This yielded among others, free media coverage

with an advertising value equivalent (AVE) – the monetary value

attached to free media coverage, of R 660 000.00 for both

electronic and print media during the year under review.

During this period more than 400 news articles were generated,

which were published by media organisations based locally

and internationally.During the year under review, Rand Water’s

website, www.randwater.co.za was visited by 249 229 unique

visitors, with visitors to the site showing a keen interest in data on

water and infrastructure, and sales and customer service.

Internal liaison

Our Corporate Communications division created several activities to

support internal communication during the year under review.

The events were specifi cally to bring our staff together in accordance

with the organisation’s values. Internal information sharing within

the organisation is made easy by means of a weekly electronic

newsletter. The newsletter communicates organisational information

with a solid human interest focus; this is apart from the bulk e-mail

messages which are sent to all staff as necessary.

International liaison

Corporate Communications also provided strategic planning and

co-ordination services profi ling the organisation abroad and also

when Rand Water receives international delegations.

Rand Water has regular professional engagements with

counterpart organisations across the globe. During the year under

review, Rand Water participated in sector-related events including

a high-level collaboration with the United Nations Human

Settlements Programme (UN–HABITAT) on World Water Day; we

have also participated in sector related events in Singapore and

Sweden. Rand Water also hosted delegates from the Continent

and Asia on study tours to its head offi ce and purifi cation plants.

Stakeholder relations

We have supported the Department of Water Affairs on numerous

professional sector-related activities. We also initiated numerous

engagements with the Provincial Legislatures in Gauteng, the North

West, Mpumalanga and the Free State, as well as local authorities

within our area of supply, and have followed these up with key

networking engagements for members of the board and the PIC.

We also continued to use our Water Wise sub-brand as a means

of promoting water conservation messages with communities

within our area of supply. These engagements often involve

partnerships with our local government partners, including

Ekurhuleni Metropolitan Municipality, Emfuleni Local Municipality

and Kungwini Local Municipality.

Rand Water Foundation

Established as our corporate social investment arm, the Foundation

is registered as a non - profi t, Section 21 Entity.

The vision of the Foundation is to;

• Promote the delivery of water services to underprivileged

communities.

• To co-ordinate, administer and manage Rand Water’s

corporate social investment resources through

undertaking community development projects in

partnership with donors and the relevant stakeholders.

• Play a strategic developmental role that may require

decisions that are not always optimal from a commercial

perspective, but contribute to Rand Water’s socio-

economic developmental imperatives, the developmental

priorities of the Department of Water Affairs; the

government’s broader objectives and growth and

development in South Africa and the Continent.

Projects

The following projects were undertaken by the Rand Water Foundation

• Gauteng School Sanitation Project

The intent is to provide or improve access to domestic waste

disposal systems for schools through partnership funding. At the

identifi ed schools (in disadvantaged communities) the existing

ablution blocks were refurbished; 5951individuals (learners

and educators) were the benefi ciaries of this Project. A health

and hygiene educational programme at the schools was also

incorporated into the Project.

• Unemployed Graduates Development:

Capacity Building at Municipal Waste

The intent is to contribute towards improving the capacity at

municipalities for the operations and maintenance of their waste

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water treatment plants. This is done in order to restore the waste

water treatment plants to their optimum capacity, and assist

municipalities with their compliance to the Department of Water

Affairs’ Green Drop compliance requirements.

The benefi ciaries are the Emfuleni, Kungwini, Midvaal, Merafong

City, Lesedi, Westonaria, Nokeng Tsa Taemane, Mogale City

and Randfontein Local Municipalities. The programme resulted

in 222 Process Controllers; 32 Assessors (Municipal employees);

29 qualifi ed in coaching; and 108 unemployed young people

qualifying in Water and Wastewater Treatment Plants NQF

Level 2 Learner ships. A further 22 unemployed graduates have

also undergone technical training as a specialist category in the

operations and maintenance of waste water treatment plants.

The municipalities have made a commitment to permanently

employ the graduates after the completion of their training.

• Lesotho Schools Water Supply

The intent is to provide and/or improve access to water for

domestic use by the disadvantaged schools in Lesotho. The project

benefi ciaries are 2901 individuals (learners and educators)

from the Leribe Secondary School in the Leribe Community

Area; Hleoheng High School in the Maputsoe Community area;

Masenathe High in the Bothabothe Community area; Morate

English Medium School, in the Kolonyama Community Area;

and Bokoro High in Teyateyaneng. The project included the

drilling and installation of boreholes and pumps at all the schools;

three schools acquired rain water harvesting equipment; and a

solar energy system was installed at two schools to facilitate the

pumping of water.

• Rehabilitation of Wetlands

The Wetlands Rehabilitation Projects are primarily aimed at water

and environment conservation management; and the alleviation of

poverty within local communities as a secondary target.

The Wetland Rehabilitation Projects at the Ezemvelo Nature

Reserve in Bronkhorspruit, Rietvlei Nature Reserve, and an initiative

with the Agricultural Research Commission near Kaalspruit River

and in Tswaing in Soshanguve incorporated the following:

• The maintenance of existing wetland rehabilitation systems

to improve their functioning; Stabilising of ‘head-cuts’

erosion in wetlands; deactivation of incised channels;

• Construction of structures to control erosion in wetlands and

trapping sediments resulting in a rise of the water table;

• Prevention of secondary erosion in previously rehabilitated

wetlands;

• Highlighting the importance of wetlands among land owners

and communities

• Urban Landscaping and Greening

200,000 indigenous trees have been planted in a partnership

between the Rand Water Foundation and the City of Johannesburg.

The Project was targeted at communities in Lenasia, Kliptown and

Soweto, and created jobs for many unemployed people.

• Bantubonke Hydroponics Farming Cooperative (Ltd).

The Project is located in the Bantubonke community area, in the

Midvaal Local Municipality and is intended to address issues

of unemployment, poverty, and building within the community.

The Project has seen the establishment of 21 SMME’s and the

development of market linkages to the Johannesburg, Pretoria and

Springs Fresh Produce Markets.

Moeketsi More, involved in the hydroponic farming project in the Bantubonke community, says the project taught her agricultural skills, business skills, hydroponic production and how to gather information. “All these skills will make sure that my family is never poor again.”