The Water Trading Entity (WTE) was first established as a Water and Equipment
Trading Account which was approved in 1983 through Circular SY3/6/B under the
Exchequer Act, 1975 (Act No. 66 of 1975) as amended, and was subsequently
amended by the Public Finance Management Act, 1999 (Act No. 1 of 1999) as
amended, which converted it into a Water Trading Entity. Under the PFMA, 1999
(Act No.1 of 1999) as amended, the WTE was required to change from cash-based
accounting to accrual-based accounting.
In terms of the National Water Act, 1998 (Act No. 36 of 1998), the Department is
responsible for the regulation of water use in South Africa by ensuring that
water is allocated equitably and used beneficially in the public interest, and
it is also required to create a register of all water users in the country. The
Act makes provision for cost recovery on services rendered by DWA to water
users. It is against this background that the Department created the Water
Trading Entity within its administration. It has been operating as an integral
part of the Department with very limited segregation of functions from the
Department’s Main Exchequer Account. The accountability for its functioning is
vested in the Director-General of the Department of Water Affairs who acts as
its accounting officer. The funding of its activities comes from the
Department’s equitable share as a transfer and through revenue collection from
the various water schemes operated throughout the country.
Its main functions relate to the development, operation and maintenance of
specific water resources infrastructure and managing water resources in specific
water management areas. It is the goal of the WTE management to achieve
financial sustainability and independence to reduce reliance on the fiscus.