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STATUS QUO OF CMAs Presentation to project management group 31 May 2012. POLICY AND CONTEXT. The Department of Water Affairs (DWA) is the custodian of National water resources , is responsible for policy and regulation of the sector.
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STATUS QUO OF CMAsPresentation to project management group31 May 2012
POLICY AND CONTEXT The Department of Water Affairs (DWA) is the custodian of National water resources, is responsible for policy and regulation of the sector. Has a mandate to establish Water Management Institutions (WMI) for the development and management of water resources. The Chief Directorate: Institutional Oversight (IO) is responsible for overseeing the establishment and development of these institutions through the Department’s Regional Offices, ensuring that they are viable and sustainable. In the absence of established CMA’s, DWA undertakes these functions.
LEGISLATIVE MANDATE • CMAs are established in terms of section 78(1) of the National Water Act, 1998 (Act No 36 of 1998). • Statutory bodies established in terms of Chapter 7 of the National Water Act and listed as schedule 3a entity under the PFMA-service delivery Public entity
MANDATE • The purpose of the CMA is to delegate water resource management to the catchment level and to involve local communities in the decision-making processes. • The intention is for water resource management to: • meet the basic human needs of present and future generations; • promote equitable access to water; • redress the results of past racial and gender discrimination and; • facilitate social and economic development
Evolution of the CMA • The principles guiding reform and transformation in resource management: • The legal requirements of decentralisation and subsidiarity. • This process moves the responsibility for resource management from DWA to the CMA • This is done in a progressive manner
The first stage following the establishment of the CMA is about creating legitimacy within the WMA, • Second phase of consolidation is entered during which the CMA is focused on building capacity and strengthening the organisation • The final phase during the evolution of the CMA is the progression to a fully functional CMA and the delegation of responsible authority functions . :-.
Corporate Form • The Policy Framework for the Governance and Administration of Public Sector Institutions (October 2005) sets out corporate forms for public institutions: Legal nature of CMAs • Public Service including: • National Government Agencies • Provincial Government Agencies • Public Entities including: • Stewardship and Research Entities • Service Delivery Entities • Regulatory and Statutory Advisory Entities • Government Enterprises including: • Statutory Corporations and Financial Intermediaries • State Owned Companies • Subsidiary Companies of public entities • State Interest Companies • Public Interest Institutions including: • Education, Welfare, Recreation Institutions and Professional Bodies
Corporate Form The appropriate corporate form must be informed by the purpose the risks, powers and functions of the CMA. A distinction should be drawn between delegation of functions within DWA, and agentising the functions. Agentising is an integral part of strengthening and improving governance, by assigning responsibility and accountability to the institution best placed to ensure efficient use of resources and effective service delivery.
A case for devolution • Stakeholder participation • Required by policy and legislation • Participation is necessary to find appropriate solutions • Ring-fence risk • Allows for a coherent, integrated approach to managing risk through tight controls and good governance….one key risks to manage is financial risk associated tariff setting, billing and collection. • Access to professional, specialist skills • important for operational management –requires moving outside the government remuneration structures. • Public confidence in decision-making
ESTABLISHMENT OF CATCHMENT MANAGEMENT AGENCIES The national water resource strategy (NWRS) 2004 19 Catchment Management Agencies (CMA) one per Water Management Areas (WMA). six CMAs gazetted for establishment two CMAs currently functional: the Inkomati and Breede-Overberg. The process of establishing CMAs was put on hold Appropriate number of institutions was investigated through project “Institutional Reform and Realignment” (IRR)
There is a clear legislative mandate for each institution. The allocation of roles and responsibilities is clear, with minimum overlap and without gaps. The institutional design embeds for effective and efficient performance Sound governance separation of policy-making, regulation and operational roles, clear accountability for performance, absence of conflicts of interest, and appropriate application of skills to the governance function. There is an alignment between the legislative mandates for functions and the funding of these functions. PRINCIPLES INFORMING SOUND INSTITUTIONAL DESIGN
Institutions are financially viable and sustainable Institutions are able to attract and retain management, technical and other skills to operate effectively and efficiently. There is transparency in the reporting of performance, and there are consequences for poor performance. The benefits of economies of scale are realised where these are significant, balanced with the principle of subsidiary management is devolved to the lowest appropriate level to enhance local accountability PRINCIPLES INFORMING SOUND INSTITUTIONAL DESIGN
Establishment of catchment management agencies 19 March 2012, the Minister pronounced the establishment of nine CMAs.....submission signed on 23 April 2012, announced at the Budget Vote, communicated via newspapers. Gazetting of 9 WMA for public comment as a component of NWRS was signed on 21 May 2012. Gazette notices will need to be publicised within the next two weeks…. in all 9 languages At National level it will be communicated via Newspapers, through the DG’s office to all other Departments, national forums. At Regional level must be communicated via Regional offices, through existing forums and other existing platforms..all comments must be submitted to CD: IO - a sixty days
Establishment of catchment management agencies The nine WMA are Limpopo; Olifans; Inkomati- Usuthu; Pongola- Mzimkulu; Vaal; Orange; Mzimvubu- Tsitsikama; Breede-Gouritz and Berg- Olifans
Project governance structure Minister PORTFOLIO COMMITTEE ON WATER AND ENVIRONMENTAL AFFAIRS DIRECTOR GENERAL INSTITUTIONAL OVERSIGHT DEPUTY DIRECTOR GENERAL NATIONAL STEERING COMMITTEE MR. NEPFUMBADA PROJECT MANAGEMENT OFFICE PROJECT MANAGEMENT GROUP RSC OLIFANTS RSC INKOMATI TO USUTU RSC VAAL RSC LIMPOPO RSC ORANGE RSC PONGOLA MZIKULU RSC BREEDE-GOURITS RSC MZIMVUBU-TSITSIKAMMA RSC BERG OLIFANTS
Five critical actions required to fast track the establishment of CMAs Fast track development of business cases ....we have 8 from previous process. Updated two business cases through IRR project Busy with Limpopo, Olifants and KZN existing contracts Require to develop Vaal, Orange, Eastern Cape require support Expedite engagement with National Treasury to ensure that the approval of the business cases is fast tracked Submit the financial viability of CMAs to National Treasury by middle of June Single advisory committee is required to advise the Minister on the structure and composition of all governing boards Submission to appoint the single advisory committee has been drafted AC to convene by middle July
Five critical actions required to fast track the establishment of CMAs DDG Regions to make recommendation on who leads the Vaal: lead Gauteng supported by Free state Limpopo: Lead Limpopo and supported North West Olifants: Lead by Mpumalanga and supported by Limpopo Northern Cape: Free State and Northern Cape to support Provision of initial governance support to the newly established agencies and governing boards CMA starter pack that provides generic policies and systems to enable quicker functionality as well as provide a level of consonance in approach
Phased establishment plan for nine CMAs The implementation will be in phases: Phase 1 Inkomati – Usuthu BreedeGouritz Pongola-Umzimkulu Phase 2 Berg-Olifants-Doorn Vaal Olifants Limpopo Phase 3 Orange Mzimvubu-Keiskamma
DWA OBLIGATIONS • Ensure that staff transfers take place timeously, • Make funding available timeouslyand ensure 3 year revenue projections are provided to CMA so that they know what funding will be available for each of the three financial years • Ensure that the CMA has access to WARMS from phase 1 so that they can use it to identify water users and can work on updating and improving the data
DWA OBLIGATIONS • Develop data and information protocols for CMAs to ensure that water resources data and information is compatible with DWA requirements. • Identify any current monitoring infrastructure that does not make up part of the national monitoring system and transfer it, with the associated budget, to the CMA for WMA level monitoring.
