DURBAN - WHILE state-owned enterprises are embroiled in maladministration and failing to sustain their operations, Umgeni Water has announced a net profit of R1.2 billion in the past financial year.
This was revealed by the board chairperson Ziphozethu Mathenjwa during the annual report presentation at the Durban ICC on Thursday.
Mathenjwa attributed the milestone result to the interim board that she said has managed to bring stability in the water utility during difficult times of droughts.
"At a time when other SOEs require cash injections from Treasury to meet their financial commitments, Umgeni Water’s strong financial position will impact directly and positively on consumers, in that the organisation will be able to keep bulk potable water tariffs at affordable levels. Umgeni Water is flying government flag very high.
“We are happy to be able to reach R1.2 bn for the first time in our history under difficult circumstances," she said.
Umgeni is the second largest water utility in the country, and the largest supplier of bulk potable water in KwaZulu-Natal. It supplies greater Durban, Pietermaritzburg and the South Coast.
Chief Executive, Thami Hlongwa, who took the reigns exactly a year ago, said the water board had other major plans in place to ensure the supply of water is always greater than the demand.
He said the end of droughts was contributed immensely on the positive financial result they received.
“Prevailing drought in the first two quarters of the financial year impacted on volumes sold. Recovery in sales occurred from January 2018 after significant rainfall in the Umgeni System resulted in the levels of dams increasing. The ultimate outcomes were a contribution to a 16% increase in revenue and R1,18 profit,” he said.
Durban. 190418. The scenic Wagendrift Nature Reserve surrounds the Wagendrift Dam and is situated just off the main N3 highway near Estcourt. Boating and fishing are the primary guest activities around the dam, and a relaxed three kilometre self-guided trail winds along the Bushmans River providing opportunity to observe the wildlife. Picture Leon Lestrade/African News Agency/ANA.
Hlongwa said part of the bigger project was the implementation of Umkomaas Bulk Water Supply Scheme which he said would ensure sustainability of water supply in the greater Durban for the next 15 years while giving Midmar Dam some relief.
“At least three major projects, with an estimated combined budget of about R2,5 billion, were under implementation. They are upgrading to Midmar Water Works; new uMshwathi Bulk Water Supply Scheme, and upgrade to Darvill Wastewater Treatment Works. Spin-offs from construction have included job creation,” he said.