POLOKWANE – Lepelle Northern Water (LNW) briefed the media on the institution’s 2024/25 annual report during an event that was hosted at Fusion Boutique Hotel last Thursday, taking an opportunity to identify areas of improvement and regression.

LNW board chairperson Dr Nndweleni Mphephu explained that the annual report gives an indication of the good work being done on targets achieved and on targets not achieved, which corrective actions have been developed and implemented.

Mphephu said that LNW’s focused priorities were human resources, operational efficiency and project management, supply chain management and sound financial management, as well as strengthening governance and clean administration.

CEO Dr Cornelius Ruiters said the annual report highlights the progress made by LNW in achieving overall organisational performance.

He explained that the role of LNW is to extract raw water from dams and rivers, the treatment of potable and industrial water, operation of bulk pipelines and pump stations, reservoirs and treatment works, as well as the maintenance of bulk water infrastructure, and to support to municipalities for bulk water supply.

He also emphasised that municipalities are responsible for reticulation and distribution.

“The need for long-term resilience planning, early warning systems and preparedness is critical and the cost of reactive management is too high, so we have to shift from reactive to preventative management,” Ruiters said.

Ruiters also said that LNW is supplying 368Ml of water to the consumers in its area, of which 60Ml per day comes from the Olifantspoort water treatment works and 44Ml per day from the Ebenezer water supply system, destined for Polokwane.

CFO Stanley Motsiri Ramalatso took the stage and reported that the institution’s liquidity is strong and well above the benchmark.

“LNW is showing strong short-term financial health and operational stability but municipal non-payment remains a huge concern. The debtors’ book rose to R1.36b from R1.25b the previous year although collection improved by 11% to R1.037b after enforcement and payment plans,” he said.

Executive manager engineering, Aluwani Gangashe, reported that LNW’s major capital projects for the year were the Olifantspoort and Ebenezer Refurbishment Phase 1A: Electromechanical, and the Olifantspoort and Ebenezer Refurbishment Phase 1A: Replacement of Pipelines and the registration of servitudes.

Mphephu concluded to say that LNW has received unqualified audit outcomes with findings from the auditor-general (AG) for the previous seven years and assured that the institution is working closely with the AG to minimise negative findings.