Trading services committee meeting resolutions on water and sanitation infrastructure
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Date: 2025-03-20 13:51:20

Trading services committee meeting resolutions on water and sanitation infrastructure

ETHEKWINI NEWSFLASH
FOR IMMEDIATE RELEASE
20 MARCH 2025
 
TRADING SERVICES COMMITTEE MEETING RESOLUTIONS ON WATER AND SANITATION INFRASTRUCTURE
 
The Trading Services Committee held its monthly committee meeting at the Pinetown Civic Centre yesterday, 19 March, chaired by Councillor Mduduzi Nkosi. 
 
The following items were recommended for consideration and approval by the Executive Committee and subsequently Full Council. 
 
*TURNAROUND STRATEGY FOR WATER AND SANITATION UNIT*
 
A presentation that gave an update on the implementation of the turnaround strategy aimed at assisting the Municipality in restoring deteriorating water and sanitation infrastructure was noted by the committee.
 
The restoration of infrastructure is a work in progress and requires commitment from various stakeholders. 
 
As part of complying with the National Treasury reform initiative to address operational inefficiencies and structural impediments in municipalities across the country, the Municipality is developing the Performance Improvement Action Plan that will be submitted for Council adoption.
 
The Performance Improvement Action Plan is a prerequisite for the Urban Settlements Development Grant (USDG) that will be provided in the 2025/26 financial year. 
 
There is an array of guideline information required from the Municipality, stipulated by National Treasury. 
 
Grant eligibility is based on two conditions: submission of Council-approved documents and an unqualified audit opinion.
 
These documents include, but are not limited to, a Council-approved turnaround strategy, an institutional roadmap, a business and investment plan, and a performance improvement action plan of acceptable quality within the prescribed period requested by National Treasury. 
 
The second condition is a clean or qualified financial audit report of the Municipality for the previous financial year.
 
Should the Municipality have received an adverse or disclaimer audit report, it will not access the grant in the next financial year but can rejoin the programme after showing improvement. The Municipality’s Trading Services Cluster will be granted R3.3 billion over the next three financial years, provided it complies with the grant conditions. 
 
A total of R54 billion will be dispersed by National Treasury to the eight qualifying metros over the six-year duration of the reform programme.
 
There are a number of stages that the Municipality will need to attain before June 2025 so that the grant amount can be provided by National Treasury. 
 
In terms of the grant requirements, the Municipality’s performance will be assessed annually to verify that the desired performance is being achieved, and that the turnaround strategy is being successfully implemented.
 
Chairperson of the Trading Services Committee Councillor Mduduzi Nkosi said the Municipality is receiving support from National Treasury, the Department of Water and Sanitation Minister, and the Premier of KwaZulu-Natal.
 
“The strategy will turn things around, and as a result, National Treasury is willing to add more funding over the six-year period of the programme,” said Councillor Nkosi.
 
 
*REAL ESTATE TO REGISTER WATERLOO BULK SEWERAGE TRANSFER SCHEME*
 
The Trading Services Committee recommended that the Real Estate Unit be granted authority to secure and proceed with registering of servitude land that was used for the completed construction of sewage infrastructure for the above project.
 
*REAL ESTATE TO REGISTER GATEWAY TRUNK SEWER*
 
The Trading Services Committee granted the Real Estate Unit authority to register the servitude from a land and legal perspective. The land to be registered was used for the construction of water and sewage infrastructure.
 
ENDS
 
Issued by the eThekwini Municipality’s Communications Unit.