RAND WATER ANNUAL REPORT 2023

» Instituting a system of employee and executive remuneration that is equitable, responsible, and motivating and that recognises and rewards excellent performance; » Overseeing that succession planning in respect of senior executive positions within Rand Water is in place; » Monitoring the implementation of the required strategies and plans to ensure business continuity, effective disaster management and disaster recovery across the Group; » Establishing the necessary structures to independently verify and safeguard the integrity of both financial and non-financial reporting, and » Safeguarding compliance with all relevant policies, laws and regulations, audit and accounting principles and the Rand Water’s Code of Ethics. Rand Water Board Diversity The Minister recognises the importance of constituting a Board that has the optimal mix of skills, expertise, and experience to ensure that the Board, as a collective, is equipped to guide the business and strategy of Rand Water. Members have been appointed for their varied leadership qualities to ensure exposure to a wide range of perspectives to facilitate robust discussions. The percentage of women serving on the Board of Rand Water is 46%, and 54% males. Out of 13 Board members, six (6) are females. Out of the 13 members, 11 members are in their first year of serving on the Board, and two (2) members; Chairperson and Executive member (CE) have served on the Board of Rand Water for more than six (6) years. In terms of skills and experience, the Board members have vast skills and experience in the fields of Governance & Compliance, Law, Accountancy and Finance, Audit and Risk Management, Strategic Management, Business Management and Administration, Project Management, Public Finance Management and Administration, Human Capital Management, Business Process Re-Engineering, Marketing and Communication, Engineering, Infrastructure management, Water management, Assets Management, and Environmental management. Except for the CE, all members are Non-Executive members for purposes of ensuring a more objective assessment of matters.

Board Term and Responsibilities The Board is serving the first year of the current four-year term which will expire on 20 September 2026. The Board is accountable for, inter alia : • Fulfilling the role of a water Board as set out in the Water Services Act; • Ensuring that Rand Water when exercising its powers and carrying out its duties achieves a balance between striving to provide efficient, reliable and sustainable water services; optimally using available resources as well as taking reasonable measures to promote water conservation and water demand management, including promoting public awareness of these matters; • The appointment of the Chief Executive (CE), The Chief Financial Officer (CFO) and the Company Secretary (CoSec), including determining the duties and conditions of service, remuneration, performance appraisal and termination of employment of the CE, CFO and CoSec; • Providing effective oversight to the Rand Water business by, inter alia: » Ensuring that the Delegation of Authority Framework is reviewed regularly to assist effective decision making throughout Rand Water and monitoring the exercise of delegated powers by management; » Defining the required levels of materiality and significance, reserving specific powers to itself and formally delegating other matters, with the necessary written authority, to Management and or specific Committees of the Board; » Monitoring and evaluating the implementation of strategies, policies, management performance criteria and the business plans having regard to its own reporting and performance responsibilities to the Executive Authority; » Continually reviewing the key performance areas (KPAs) and key performance indicators (KPIs) of Rand Water and monitoring reporting against these. Exercising objective judgment on the business affairs of Rand Water, independent from Management, but with sufficient management information to enable a proper and objective assessment to be made; » Safeguarding a comprehensive system of policies and procedures and appropriate governance structures at Management level to ensure the effective implementation of Board decisions;

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