RAND WATER 2015/16 INTEGRATED ANNUAL …

1 Rand Water522 Impala Road, Glenvista,Johannesburg, 2058, South AfricaPO Box 1127, Johannesburg, 2000, South AfricaTel: +27 (11) 682 0911 Fax: +27 (11) 682 0444 Customer Service Centre: 0860 10 10 60 Email: WATER 2015 /16 INTEGRATED ANNUAL REPORTRAND WATER 2015 /16 INTEGRATED ANNUAL REPORTRAND WATER INTEGRATED ANNUAL report 2015 /162 The compilation of this report has been aligned to the requirements of the King Code of Governance Principles for SA (King III Code), the International INTEGRATED Reporting Framework and complies with the Global Reporting Initiative (GRI) Guidelines.

2 We have also remained mindful of the Public Finance Management Act, 1999 (Act 1 of 1999) as amended, and its references to ANNUAL reporting. The guidelines and criteria for good reporting, monitoring and evaluation systems, and service delivery indicators recommended by National Treasury have also informed the compilation of this ease of reading and information accessibility, this report has been prepared in the first person. The terms Rand WATER , Rand WATER Group , we , us and our all refer to Rand WATER and our associated operations and initiatives, unless otherwise stated.

3 References to the year under review or the financial year in this report refer to the period 1 July 2015 to 30 June INTEGRATED ANNUAL report builds on the progress, insights and feedback received during the year under review and will provide an overview of Rand WATER s financial and non-financial WATER AND INTEGRATED REPORTING1 CONTENTSF oreword by the Minister of WATER and Sanitation, report by the Chairperson, Members of the Board, Board Profiles, Chief Executive s Review, The Executive Profile, Corporate Governance Reporting, Group Governance report and Chief Financial Officer s Report4 Who we are60 Our vision, mission and values62 Our strategic objectives63 WATER purification process64 Our self- appraisal66 Our key relations672 How we manage risk68 Our areas of operations78 Our employees126 Stakeholder relations142 Our 2015 /16 INTEGRATED ANNUAL report is our most strategic document addressed to our Shareholder and our WATER INTEGRATED ANNUAL report 2015 /163 THE SCOPE OF OUR INTEGRATED REPORTRand WATER s INTEGRATED ANNUAL report is published annually.

4 And is then tabled before the Parliament of the Republic of South Africa by the Minister of WATER and Sanitation. The report provides information on our operations, financial, non-financial performances and INTEGRATED sustainability developments for the year ended 30 June 2016. The report focuses on the business of Rand WATER in South Africa and internationally. The material content in this report should be referenced in conjunction with our Consolidated ANNUAL Financial Statements also contained herein. The report has been approved by the Board of Rand WATER and has been signed on their behalf by the Chairperson, Adv Matshidiso Hashatse and the Chief Executive, Mr Percy Relations146 Our respect for the environment151 Our Corporate Social Responsibility 1604 Consolidated ANNUAL Financial Statements176 This INTEGRATED ANNUAL report informs you of our work during the period 1 July 2015 to 30 June report allows the reader an opportunity to access Rand WATER s ability to create and sustain value in the short, medium and long report is published annually.

5 Approved by the Board of Rand WATER and is then tabled before the Parliament of the Republic of South Africa by the Minister of WATER and INTEGRATED report reflects our commitment to INTEGRATED reporting across the organisation for the review by our Shareholder and the benefit of all our stakeholders. This report was tabled before the Board Group Audit Committee and subsequently approved at a meeting of the Board of Rand WATER on 8 October the International INTEGRATED Reporting Committee (IIRC) structure of the six capitals (financial, manufactured, human, natural, social and intellectual) and how we build or deplete them are addressed in this INTEGRATED report , while not specifically referred to in this manner.

6 We also reference the eight material sustainability issues viz; responsible growth, services and customers, supply chain management, occupational health and safety, employee development, community engagement, resource use and efficiency; and environmental WATER INTEGRATED ANNUAL report 2015 /164 FOREWORD BY THE MINISTER OF WATER AND SANITATION Minister N P Mokonyane MPThis report accurately reflects the key milestones achieved by Rand WATER in its quest to improve its product base, through the delivery of accessible and high quality WATER WATER INTEGRATED ANNUAL report 2015 /165To monitor the performance of Rand WATER throughout the 2015 -16 financial year we have utilised this Compact, as well as quarterly reports to assess its performance.

7 We have also regularly met with its Board and Executives during the year to reflect on, and review our expectations against the Key Performance Indicators (KPIs).This report accurately reflects the key milestones achieved by Rand WATER in its quest to improve its product base, through the delivery of accessible and high quality WATER services. Most importantly, the report also reflects how using strategic partnerships, the organisation has ensured that the pace of service delivery is accelerated. Rand WATER has also paid attention to further develop resilient infrastructure that will enable them to meet the requirements of local authorities, industry, commerce as well as the environment.

8 I note also their advocacy work with a range of stakeholders and partners to preserve and save WATER in our country; and their efforts to use our scarce WATER resources wisely in the medium to long term as the world adapts to the impact of climate change. We must reference too, the instrumental role Rand WATER plays in our War on Leaks Programme. The Programme was launched by President Jacob Zuma in 2015 and is designed to train young people to curb WATER losses. We urge all role players within the local government sector to heed the call to walk this journey with us, creating viable economic platforms that will assist municipalities to become of the core values as espoused by the democratic government of South Africa are accountability and transparency.

9 Upon the tabling of this INTEGRATED ANNUAL report , the Department of WATER and Sanitation (DWS) will account to Parliament and to the people of South Africa on Rand WATER s performance. The trust that South Africans have placed in the WATER sector cannot be betrayed. Organisations like Rand WATER must spare no effort in ensuring that it continuously enhances the quality of the services it offers. Furthermore, we also recognise the important role that Rand WATER plays on the African continent with regards to finding solutions for WATER and sanitation services.

10 This is in line with the important game changers that are driving both the African and international WATER sectors. Also, since innovation in the sector is an important game changer South Africa must be at the cutting edge of it. The role of WATER boards such as Rand WATER , is to drive this critical cog. The establishment of an Innovation Hub by Rand WATER recognises that WATER boards must take into consideration the current developmental stage of the country and our status as a WATER scarce country. Through out the Back to Basics programme, WATER boards have been playing a critical role in the execution of this programme.