Water and Sanitation Minister Pemmy Majodina has revealed a disturbing governance lapse involving two major water boards, where members allegedly received R3.7 million in unapproved payments without ministerial consent.
Addressing the issue, Majodina confirmed that board members at Amatola Water and Magalies Water were paid additional remuneration beyond what was formally approved by her office. The payments, she said, were irregular and contravened established governance and remuneration frameworks governing public entities.
According to the minister, preliminary investigations uncovered that the overpayments were processed internally, raising serious questions about accountability, internal controls, and compliance with Treasury regulations. She stressed that no public entity is permitted to adjust board remuneration without explicit approval from the executive authority.
Majodina described the revelations as “deeply concerning,” noting that water boards are already under pressure to deliver reliable services amid financial and operational challenges. “Resources meant to support water infrastructure and service delivery must not be diverted through unauthorized benefits,” she said.
The Department of Water and Sanitation has since initiated further investigations, with possible consequences including the recovery of funds, disciplinary action, and referrals to law enforcement agencies where necessary. Majodina also indicated that governance frameworks across all water boards are being reviewed to prevent a recurrence.
The scandal has reignited debate about oversight and ethical leadership in state-owned entities, particularly in sectors critical to basic service delivery.
As public scrutiny intensifies, the minister reiterated her commitment to restoring integrity in the water sector, warning that those found to have acted unlawfully will be held accountable.