DWS issues notice on merger of Umgeni Water, Mhlathuze Water
The Department of Water and Sanitation (DWS) has embarked on the reconfiguration and consolidation of Umgeni Water and Mhlathuze Water with the aim of improving the institutional landscape in the water sector.
The DWS, issuing a letter for public comment on the JSE’s communication platform on Wednesday, will disestablish Mhlathuze Water as a separate entity and extend the boundary of Umgeni Water to include Mhlathuze Water.
The incorporation of Mhlathuze Water into Umgeni Water will result in the formation of a single water board in KwaZulu-Natal, enabling both water boards to merge their assets and skills for key infrastructure development, increase water supply, expand access to unserved areas and improve service delivery within the entire province.
The notice outlines that Umgeni Water will be the receiving entity of the staff, assets and liabilities of Mhlathuze Water as it is absorbed as a going concern.
“I am confident that my department has developed a robust process that will assist in mitigating and managing the risks. My director-general will appoint an independent person to project manage the process of extending the boundary of Umgeni Water to include Mhlathuze Water. We are confident that issues, such as the loans and creditors, will be managed during this process,” says Water and Sanitation Minister Senzo Mchunu.
Stakeholders have 10 days to provide written comment on the matter.
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