Rand Water | Integrated Annual Report 2025

Details of current and previous year Irregular Expenditure (under assessment, determination, and investigation Description 2025 2024 R’000 R’000 Fruitless and Wasteful Expenditure under assessment - - Fruitless and Wasteful Expenditure under determination - - Fruitless and Wasteful Expenditure under investigation - - Total - -

Details of current and previous year disciplinary or criminal steps taken as a result of Fruitless and Wasteful Expenditure

2025 R’000

2024 R’000

Description

Disciplinary action taken

713

358

Disciplinary action is being implemented

-

-

Total

713

358

IRREGULAR EXPENDITURE UNDER DISPUTE IN THE 2024/25 FINANCIAL YEAR During the 2023/24 regulatory audit conducted by the AGSA, nine (9) matters were disclosed as Irregular Expenditure under assessment in the Integrated Annual Report, in accordance with the requirements of the Public Finance Management Act (PFMA) Compliance and Reporting Framework (“the Framework”). As at 30 June 2025, the total expenditure for these matters amounted to R969 million. The Framework requires that where there is a difference of opinion regarding the classification of expenditure, the assessment process must be completed within three (3) months from the date the matter is reported to the Accounting Authority. The Loss Control Office concluded that the transactions in question did not constitute irregular expenditure after conducting assessments and determinations tests during the 2024/25 financial year. The AGSA, however, was in disagreement with this conclusion and is of the view that the matters should be classified as irregular expenditure. The Framework requires that a formal dispute be lodged with the relevant treasury and the AGSA, within seven (7) days from the date the dispute was discovered. In accordance with Paragraph 4.2 of the Framework, a formal dispute has been lodged with National Treasury for resolution.

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Rand Water | Integrated Annual Report 2025