Stable governance is essential for ensuring water security, and the success of bulk water provision is premised on stable accounting authorities, specifically boards of directors.
“The consequences of unstable governance are well-documented. The collapse of entities such as Eskom, South African Airways and the Passenger Rail Agency of South Africa, can be attributed, in part, to governance challenges,” the Association of Water and Sanitation Institutions of South Africa (Awsisa) said in a statement released on Monday.
These entities have faced significant difficulties in providing effective services owing to instability in their governance structures.
The stability of these boards is crucial for ensuring continuity and consistency in policy implementation, ultimately contributing to water security as South Africa grapples with the challenges of climate change, urbanisation and economic development.
“The need for a stable and effective water governance system has never been more pressing.”
Recently, the organisation has observed the efforts of Water and Sanitation Minister Pemmy Majodina to stabilise the sector.
“The Minister has correctly identified the challenge facing the sector, which lies in the municipalities. The Minister’s efforts to address these challenges and promote stability in governance are commendable and Awsisa urges the Minister to continue her good work of stabilising governance in the sector.”
Entities with stable governance structures have been able to provide effective services and contribute to the country's development, the association said, highlighting some examples of success.
These include the Financial Sector Conduct Authority, which, for example, has played a crucial role in maintaining stability in the financial sector, while, similarly, the stability of the South African Reserve Bank has been a cornerstone of the country's economic stability.
“The Reserve Bank's independence and stability have enabled it to make decisions that are in the best interests of the economy, without fear of political interference.”
Awsisa believes that the stability of boards in the water sector is essential for ensuring water security.
“The association urges the Minister to continue her efforts to stabilise governance in the sector, ensuring that boards are able to provide effective leadership and guidance.”
Further, Awsisa commits to implementing measures to promote stability in the governance of the water sector, including promoting transparency decision-making processes and accountability for actions; developing effective governance frameworks that promote stability and effectiveness in governance; and providing training and development opportunities for skills and knowledge enhancement of board members.
“By supporting Awsisa’s initiatives to implement these interventions, the benefit for the Minister is that of stable boards that embed ethical leadership and good governance and provide effective strategic leadership that contributes to high water availability factor and therefore water security.”
“When boards are stable and are allowed to serve their full-term, this stabilises the institutions and strengthens governance. Instability in the accounting authority destabilises institutions and has a potential to collapse them.”
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