Africa-Press – South-Africa. The Department of Water and Sanitation (DWS) and its entities have lost billions of rands in taxpayers’ money since 2019/20 due to persistent governance failures.
These include poor project management, delays and cost overruns, inadequate financial reporting, and critical staff shortages, resulting in irregular, fruitless, and wasteful expenditures totalling R3.68 billion.
This was revealed during a 2023/24 audit briefing by the Auditor-General (AG) to the Standing Committee on Public Accounts (SCOPA).
In a separate SCOPA briefing, the Special Investigating Unit (SIU) exposed further systemic issues in the sector, including inflated pricing, irregular procurement, and fraudulent payments.
According to the audit, the AG informed the committee that overall audit outcomes in the portfolio regressed compared to the prior year.
This was primarily due to the Water Research Commission (WRC) falling from a clean audit to an unqualified audit with findings.
Notably, there was a R257 million increase in irregular expenditure from the previous financial year, taking the total to R363 million in 2023/24.
This brings the total irregular expenditure to R2.635 billion since 2019/20.
“Disciplinary and corrective actions are not implemented in a timely manner due to prolonged investigations, which weakens accountability,” said the AG.
Limited investigative capacity delays resolution and enables ongoing non-compliance, while weak supplier performance management allows underperforming service providers to remain, they added.
Additionally, there was a R29.7 million increase in fruitless and wasteful expenditure, taking the total to R100 million in 2023/24.
This brings the total fruitless and wasteful expenditure to R1.04 billion since 2019/20.
A water tanker in Ditsobotla, North West. This area is plagued by persistent water outages. Photo: Seth Thorne
Some of the root causes
The AG said that it had identified a lack of adequate internal controls to prevent fruitless and wasteful expenditure at the Water Trading Entity (WTE).
“The fruitless expenditures incurred mostly related to procurement and project management controls on internal and external projects.”
The previous procurement policy was not suitable for infrastructure-related goods and services.
This resulted in protracted procurement processes and additional standing time costs and site overheads that could not be directly linked to any construction work, according to the AG.
The committee was informed that a WTE project worth R2.9 billion is currently on hold. This is, unfortunately, not a new issue. About 45% of the entity’s projects are delayed.
The WTE completed only 39% of planned maintenance projects (474 of 1,224), no dam safety upgrades were carried out, none of the 10,798 planned bucket toilet replacements were completed, and just one of six bulk water projects reached readiness.
This has dire consequences. In South Africa, a significant amount of potable water is lost due to leaks, wastage, and illegal connections, with estimates ranging from 37% to 42% of piped water unaccounted for.
This water loss translates to billions of rands in revenue loss annually and contributes to the country’s overall water crisis.
The AG reported persistent audit failures, notably in the Lesotho Highlands Water Project, and flagged extensive wasteful expenditure across several initiatives.
These included R39 million lost due to delays at the Hazelmere Dam (2019/20), R15.6 million spent on pump station repairs that were never done (2020/21), and R22.7 million wasted due to poor procurement at Clanwilliam Dam (2019/20–2021/22).
Further losses were linked to delays in projects where workers were paid despite doing no work due to broken machinery, the absence of certified engineers, or a lack of fuel.
The Trans-Caledon Tunnel Authority (TCTA) also reported that it could not investigate historical issues due to missing records and invoices, echoing the AG’s broader concerns about poor record keeping and lack of accountability.
On a positive note, the AG said that the department and its entities have “made progress” in addressing irregular expenditure through investigations, disciplinary action, and court processes.
Leadership must continue to ensure timely and effective investigations to eliminate historical irregularities and prevent future occurrences, said the AG.
Audits of the performance of water use efficiency, largely related to the state of infrastructure, across the country. Photo: DWS No Drop Report
SIU investigation into DWS
On 4 June 2025, the SIU briefed SCOPA on its investigations into the water and sanitation sector. Fourteen proclamations have been issued since 2008.
Investigations have uncovered cross-cutting trends, including the irregular appointment of service providers, irregular contract extensions, over-priced goods and services, procurement irregularities, fraudulent claims paid, and payments for work that was never performed.
Specific findings include irregular appointments at Amatola and Lepelle Northern Water Boards, over-priced contracts, and officials certifying work that was not performed in DWS contracts.
Outcomes include the recovery of over R569 million in cash and/or assets and contracts worth over R1.1 billion being set aside or deemed invalid from 2012 to date.
The SIU has also made referrals to the National Prosecuting Authority for disciplinary and administrative action.
The unit has urged systemic recommendations to prevent future corruption and supports the establishment of a Water Sector Anti-Corruption Forum to foster collaboration among stakeholders.
Children collecting water for their community near Lichtenburg in the North West. Photo: Seth Thorne
What happens next for Water and Sanitation?
The AG said that the impact of the issues plaguing the department and its entities is severe.
Delays in replacing bucket sanitation systems in formal settlements deny residents a basic constitutional right.
Broader project delays cause undue hardship to communities meant to benefit from them.
Incomplete dam safety upgrades put communities at risk of loss of life and property, while neglecting infrastructure maintenance accelerates deterioration and contributes to excessive water losses.
SCOPA chairperson Songezo Zibi said the provision of water and sanitation is one of the priority areas the committee will focus on in the 7th parliamentary term.
Zibi stated that the concerns raised by the AG and SIU will be discussed with the Minister of Water and Sanitation, Pemmy Majodina, when the committee meets with her next week.
Issues for discussion include, among others, the management of large projects that are often delayed and have cost overruns, as well as the preparation of financial statements.
It also includes project and contract management in the bulk water system and the capacitation of the department across the board.
At the 2025 Water and Sanitation Indaba, DWS pledged to implement a comprehensive turnaround strategy to secure reliable water and sanitation services.
They said that this is achieved by focusing on institutional reform, increased investment, infrastructure improvement, and enhanced governance.
Key promises include establishing the National Water Resource Infrastructure Agency, ensuring operationally efficient utilities across municipalities, combating corruption, and fostering cross-sector partnerships to build a water-secure South Africa.
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