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Rationale

Water Research Act Amendment Bill BRIEFING TO PORTFOLIO COMMITTEE ON WATER AND ENVIRONMENTAL AFFAIRS. Reforming & strengthening of SA’s water research landscape Water research strategy (WRS) - framework for water research in SA WRS guided by

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Rationale

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  1. Water Research Act Amendment BillBRIEFING TO PORTFOLIO COMMITTEE ON WATER AND ENVIRONMENTAL AFFAIRS

  2. Reforming & strengthening of SA’s water research landscape • Water research strategy (WRS) - framework for water research in SA • WRS guided by • government priorities including water related SIPs; • thrust to accelerate achievement of MDGs • global change and green economy drives • SA’s future water security initiatives • thrust on SA’s preparedness to deal with hydrological hazards • generation of knowledge and skills required to understand the biophysical environment & hydrological cycle in its entirety Rationale 2

  3. Rationale cont... Include provisions on the appointment of members of the Board and CEO in line with other entities of governmentInclude provisions on alignment with applicable legislations PFMA – management of research fund, levies, etc. National Water Act – devolution of water management to catchment level Water Services Act – regulatory regime - safe drinking water in SA National Environment Management Act – interactions of water with other components of the biophysical environmentWiden the scope of WRC’s collaboration with other institutions dealing with water related research ( e.g. CGS, CSIR, ARC, UNESCO water centers) 3

  4. Section 3 • proposed amendments under this section include the removal of reference to specific institutions such as the CSIR; • to open the WRC to working with a wider range of institutions than was envisaged in 1971; Some Of Sections ProposedORRemoved 4

  5. Section 4 • proposed amendments in section 4 address the functioning of the Board; • bring functioning of the Board in line with contemporary governance requirements and prescripts of the PFMA; • one of the key elements of this section relates to the appointment of the Board Some Of Sections ProposedORRemoved 5

  6. Section 4 • key issue in relation to governance relates to the membership of the Board where currently the Director General of DWA is an ex-officio member of the Board; • this position, however, raises a potential conflict of interest in the Director-General both sitting on the Board and being responsible for the Departmental oversight and regulatory role; • recommendation is, therefore, to remove the Director General as a member of the Board; Some Of Sections ProposedORRemoved 6

  7. Section 7, 8 & 9 • Sections 7, 8 and 9 deal with the functioning of the Board; • Also include codes of conduct of the Board members and validity of the decisions taken by the board; • these sections are aligned with the relevant sections of the NWA of all Boards of institutions for which the Minister is responsible for • in line with international governance practice, an amendment to introduce establishment of an Audit Committee by the Board is proposed. Some Of Sections ProposedORRemoved 7

  8. Section 10 • Section 10 deals with issues pertaining to the CEO, staff of the WRC & conditions of employment; • it is amended to refer to the CEO, rather than the executive director; • also clarify the appointment process of the CEO & staff of WRC; • the proposed appointment process is that the Minister appoints the CEO on recommendation from the Board, for a period of not more than 5 years, with a possible reappointment for a second term of office; and • the proposed amendments would also mean that termination of the employment of the CEO would be done by the Minister after consultation with the Board. Some Of Sections ProposedORRemoved 8

  9. Section 11 • the needs to align this section with the NWA pricing strategy and the institutional arrangements in particular; • this is to ensure that the determining of the charges and the collection of the charges is done in accordance with the requirements of the NWA; • the intention is to limit the financial risk to the WRC of poor billing and under-collection by either DWA or CMAs in future when the billing function is transferred to them; • the amendments should ensure that DWA or the CMAs carry any risk associated with under-billing, incorrect billing, or the failure to collect billed revenue; Some Of Sections ProposedORRemoved 9

  10. Section 11 • currently, where there is under-recovery, the DWA opts to pay the WRC before allocating money to the DWA requirements, ensuring that the WRC receives its full budget; • payment via CMAs may put this at risk unless appropriate contractual arrangements are in place; and • such contractual arrangements must be supported by the legislation. Some Of Sections ProposedORRemoved 10

  11. Section 13 • major amendment proposed in section 13 is that the WRC may use its funding of not more than 10% of total allocation outside South Africa for research purposes; and • amendments are also proposed to tighten up on investment options and ensure alignment with the PFMA. Some Of Sections ProposedORRemoved 11

  12. Some Of Sections ProposedORRemoved • Section 14 • amendments to section 14 are proposed to improve the financial reporting and auditing requirements in line with current best practice and regulatory requirements. 12

  13. Thank You

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