The Minister of Water Affairs and Forestry, Ronald Kasrils, MP, hereby publishes the draft Water Services Act Amendment Bill, which provides for the authorisation of water boards by the Minister to perform other activities than their primary activity outside the borders of the Republic of South Africa. More details are set out in the attached explanatory memorandum and Bill.
E-mail: vda@,dwaf.gov.za and marked for the attention of Mr A L Vermeulen (Director: Water Services Policy and Strategy).
I Words in bold type in square brackets indicate omissions from existing enactments.
To amend the Water Services Act, 1997 so as to enable water boards to perform activities outside the borders of the Republic of South Africa; and to provide for matters connected therewith.
Amendment of section 30 of Act 108 of 1997 1.
(3) The Minister may, in consultation with the Minister of Finance, authorise a water board to perform an activity outside the borders of the Republic of South Africa.
the maximum amount of capitalbthat, may be taken out of the Republic of South Africa.
This is the Water Services Amendment Act, 2004.
STAATSKOERANT, 30APRIL 2004 No.
EXPLANATORY MEMORANDUM ON THE WATER SERVICES ACT AMENDMENT BILL, 2004 1 When a water board is established in terms of section 28 of the Water Services Act, 1997 (Act No. 108 of 1997) (hereinafter referred to as the Act) a service area for that water board is determined. This service area is understood to mean a service area within the Republic of South Africa. As a water board is exclusively a statutory body, it only has the powers conferred upon it by statute. Should a water board therefore wish to operate outside the borders of the Republic of South Africa, it lacks the statutory authority to do so. Initially there was some uncertainty about this legal position. It has subsequently been clarified however by a number of legal opinions by senior counsel.
The proposed amendment of section 30 of the Act provides for two phases in the process to authorise extraterritorial activities of water boards.
2.1 The first phase consists of a publication by notice in the Gazette of the parameters within which an approval to operate extraterritorially may be granted.
2.1.I Thedetermination of these parameters occurs on theinitiative of the Ministerof Water Affairs and Forestry but in consultation with the Minister of Trade and Industry, the Minister of Finance and the Minister of Public Enterprise. This means that each of the Ministers to be consulted, can veto a proposal.
Theparameters are determined by afixationof the nature of the permissible activities, the permissible countries andthemaximum permissible amountof money to be taken out of the country.
This determination is more or less a once and for all activity.
Forestry in consultation with the Minister of Finance. Here also each Minister has the power to veto. As the assessment of financial risk is a major factor during this phase, the concurrence of the Minister of Finance is deemed essential.
3.1 Section 29: The primary activity of a water board is the provision of water services to other water services institutions in its service area.
they are in accordance with the board's policy statement; and it is provided for in its business plan.
3.3 Section42: Ring-fencing.
A water board must manage each activity as a separate unit.
A water board must maintain separate financial accounts for each of its activities.
All transactions between units of a water board engaged in different activities, must be carried out on terms which could be expected to exist between unrelated businesses.