Government employees making millions as South Africa’s taps run dry

Members on South Africa’s water boards can earn up to R1.7 million a year, and are paid between R1,150 and R1,818 in meeting fees.

This comes as many of South Africa’s water boards are in dire straits, with financial and operational struggles weighing on water supply in different parts of the country.

South Africa’s water woes reached a boiling point in recent weeks when some Johannesburg residents protested the city’s unreliable water supply.

Specifically, residents in Coronationville and Westbury protested the intermittent water supply they have experienced for weeks.

A recent press statement from the Department of Water and Sanitation (DWS) revealed the remuneration of South Africa’s water board members.

In this statement, the department clarified that the maximum amount earned by a board member in the last financial year was R1.7 million.

In addition, the DWS revealed that board members are paid a meeting fee charged at their hourly rates for time spent in meetings of the board and its committees/sub-committees.

On top of this, board members are paid a board fee, which is fixed and equal to 16 hours a month, to compensate them for time spent on preparation for meetings, research, and other official activities of the water board.

“There are standard board meetings, which normally take place every two months, as well as extraordinary board meetings, to deal with specific issues as they arise,” the DWS explained. 

“Each board meeting is normally preceded by board subcommittee meetings. The boards are the accounting authorities of the water boards and are required to perform their duties diligently.”

“Board meetings can take up to two days and may require substantial preparatory work, including subcommittee meetings.”

The department explained that different hourly rates apply depending on the water board, taking into account the board’s size and annual budget.

The hourly rates vary between R1,818 per hour for the chairperson of a large water board and R1,150 per hour for a board member of a small water board.

“These rates are much lower than the average rates paid to members of boards of comparatively sized companies in the private sector,” the DWS said.

“Most of the board members are professionals in fields such as finance, accountancy, law, engineering, and science.” 

“The hourly rates paid to board members are in line with the rates that the board members would charge if they were practising as professionals in their industries.” 

Water board woes

South Africa’s water boards and infrastructure face many challenges, including mismanagement, financial irregularities, funding shortages, and improper maintenance.

These challenges have cumulated into South Africa’s severe water crisis, which has left several parts of the country without water for days, weeks, or even months.

South Africa’s water boards, which report to the DWS, are partly to blame for this, as they play a key role in the country’s water sector.

Their main responsibility is to sanitise raw water supplied by the Water Trading Entity and to provide clean water to municipalities responsible for ensuring access to water services.

 Water service authorities purchase the water in bulk from the water boards and then take responsibility for the infrastructure and processes necessary to supply water to their end-users, including residents, industries and farmers.

In recent years, many of these water boards have struggled significantly both operationally and financially.

In November 2024, the DWS warned that two of the country’s water boards are facing bankruptcy due to massive municipal debts.

The department explained that the issue stems from water boards being funded solely by municipal payments for water services. Therefore, when municipalities fail to pay, the water boards face financial collapse.

Water and Sanitation Minister Pemmy Majodina also revealed earlier this year that 13 individuals have been held accountable for embezzling public funds at two of South Africa’s water boards.

Of these 13 people, two were chief executives of the water boards, and many other senior officials and managers were implicated.

Ten of these individuals were dismissed from the boards, while disciplinary proceedings are underway for two. The last individual resigned pending the finalisation of their hearing.

Auditor-General feedback

In its latest statement, the DWS explained that the total cost of all board fees combined is less than 0.1% of the water boards’ operational budgets.

It said the water boards and Trans Caledon Tunnel Authority (TCTA), a state-owned entity charged with financing and implementing bulk raw water infrastructure projects, have consistently achieved unqualified audits from South Africa’s Auditor-General (AG).

In her 2023/24 report, AG Tsakani Maluleke said that, overall, the audit outcomes of the water and sanitation sector have improved since 2018/19.

However, she also noted that “the controls and disciplines necessary for credible financial reporting had not been established in the portfolio”.

“This lack of institutional capacity was also evident in performance reporting. Seven of the water boards submitted performance reports with material misstatements for auditing, of which only four were able to correct the errors we identified,” she said.

“The high levels of non-compliance in the areas of consequence management and procurement and contract management are of particular concern in a portfolio dependent on suppliers for delivery on projects and operations.”

In its latest statement, the DWS said that the AG’s unqualified audit opinions reflect sound governance and financial management.

“The consolidated actual revenue collected was R38.9 billion, which is higher than the projected revenue of R33.2 billion,” the DWS said. 

“This indicates an overall positive trend. This improvement in revenue collection can be attributed to better credit control measures, particularly by the larger water boards.”

“The resolution of South Africa’s water service delivery challenges requires a wide range of actions, including by DWS, municipalities, which are water services authorities, the private sector and the public.”