DWS should look into bonuses at Rand Water – OUTA

In 2014/15 board approved a bonus incentive to CE Percy Sechemane of 71.2%, well above the 45% threshold

OUTA calls DWS to look into bonuses at Rand Water

8 August 2018

The Organisation Undoing Tax Abuse (OUTA) has received damning evidence suggesting that undue bonuses were paid to Rand Water’s Chief Executive (CE) for three consecutive years.

OUTA has written a letter to Department of Water and Sanitation (DWS) Minister Gugile Nkwinti requesting he review the bonuses paid to the CE for the period 2014-2017 financial years as well as recover monies that were awarded unduly.   

In the 2014/15 financial year the Rand Water board approved a bonus incentive to the CE Percy Sechemane, to receive a bonus of 71.2%, which greatly exceeded the 45% threshold of the total cost to company.  While former DWS Minister Nomvula Mokonyane question the bonus that year, she proceeded to approve it along with exorbitant bonuses for two more years preceding it.

What is questionable is that the Sedibeng Regional Sewer Scheme (SRSS) and War on Leaks Programme (WoLP) were among the motivating factors for awarding bonuses in 2016/17 financial year.  Yet neither of these projects can be regarded as a success. Had the SRSS been successful, municipalities such as Emfuleni would not have streets overflowing with raw sewage. Even more puzzling is the fact that, earlier this year, Rand Water indicated to parliament that one of the challenges facing WoLP is overspending.”  Portfolio Manager, Yamkela Ntola.

As such OUTA urges Minister Nkwinti to review all executives bonuses from 2014 – 2017; recover monies unduly awarded in full or in part and that bonuses are granted on merit and in line with policy.

Issued by Lois Moodley, Head of Communications, OUTA, 8 August 2018