Rand Water | Integrated Annual Report 2025

Consolidated Annual Financial Statements for the year ended 30 June 2025

BOARD REPORT (CONTINUED)

Management is in the process of implementing relevant consequence management against individuals responsible for the transgressions. Rand Water has, in the current financial year, experienced significant maturity in its overall compliance environment. This was predominately influenced by factors, amongst others, the implementation of the revised organisational compliance business model.

Various initiatives were implemented during the current financial year including but not limited to: • Enhancement and strengthening of existing Combined Assurance Forum; • Embedding of the Compliance Regulatory Framework; • Awareness on regulatory changes to ensure alignment to legislative requirements; • Strengthening of compliance environment knowledge; • Strengthening and monitoring of internal control to high-risk business activities; • Increasing number of condonation applications to relevant authority; and • Submission of uncondoned matters to governance structures for removal.

The Board has re-affirmed its policy statement on mechanisms designed to detect and prevent irregular expenditure in accordance with established Group policies and frameworks.

The identified items have been disclosed in Note 40 to the consolidated annual financial statements. 4.1 Preferential procurement

In the current reporting period, the Group's Total Measured Procurement Spend (TMPS) is R4 817 million (2024: R4 510 million) with a B-BBEE recognition of 105.6%.

The Group’s B-BBEE rating was confirmed at level 4 for the current reporting period.

Preferential procurement B-BBEE recognition of TMPS

Unit of Measure 2025 Actual

2024 Actual

% of TMPS

105.6%

112.4%

Work Awarded Through Bids

Rand Water awarded 19 bids in the current reporting period to the value of R9 778 million (2024: R2 360 million). The amount excludes bids that were awarded based on rates. Bids refer to procurement transactions that are above the quotation threshold of R2 million.

All 19 bids were awarded to B-BBEE compliant entities.

Total value of awarded bids (excluding bids awarded on rates) R'000

Number of bids awarded to B-BBEE compliant entities Percentage

Work awarded per B- BBEE level

Number of bids awarded

Quarter 1 Quarter 2 Quarter 3 Quarter 4

5

5

100% 100% 100% 100% 100%

58 516

10

10

6 142 164

1 3

1 3

684 161

2 892 896 9 777 737

Financial year 2024/25

19

19

188

Rand Water | Integrated Annual Report 2025