The Organisation Undoing Tax Abuse (Outa) on Monday warned that, while necessary, the amendment of South Africa’s Water Services Act will not fix political failure and poor governance.

In its formal submission to Parliament on the Water Services Amendment Bill, Outa recognised the scale of the reform and supported its intention, noting that reform was necessary; however, it must address the root cause.

“Across large parts of the country, municipal water and sanitation services have collapsed. Sewage flows into rivers. Treatment plants fail. Infrastructure decays while budgets are mismanaged,” Outa executive manager Julius Kleynhans said.

While Outa supports the Bill’s intent to professionalise water services, strengthen compliance and introduce consequences for persistent failure, legislation alone will not restore service delivery.

“South Africa already has a strong legislative framework. The real crisis lies in weak oversight, inappropriate appointments, financial mismanagement and a lack of consequences,” he said, further highlighting a shortage of political will and a need for consistent consequence management when leadership failed.

“Municipalities that function properly are doing so within the existing legislative framework. The failures seen elsewhere stem largely from weak political oversight, inappropriate appointments, chronic under-maintenance, financial mismanagement and a longstanding absence of consequences.”

Outa further raised concerns about the concentration of licensing, regulatory, and enforcement powers within the Department of Water and Sanitation, particularly where the department may also act as a service provider.

This creates a conflict of interest, where the regulator becomes both player and referee.

“Without strong safeguards, this risks politicisation, inconsistent decision-making and constitutional conflict with municipal executive authority. Outa reiterates its call for the establishment of an independent water regulator to ensure impartial oversight and credible enforcement.”

The organisation welcomed the Bill’s proposed governance reforms for water boards, including clearer fiduciary duties and alignment with the Public Finance Management Act and King IV principles.

However, governance reform alone will not succeed without financial sustainability, predictable infrastructure investment and stronger alignment between water boards and municipalities.

Outa further supported the introduction of criminal liability for directors and municipal managers found guilty of negligence or willful misconduct. Accountability must also extend to political office bearers who approve budgets, divert funding away from water infrastructure or fail in their oversight responsibilities.

“Given the state of many municipalities, intervention is justified. But if we do not fix political interference and enforce consequences, this Bill risks becoming another well-written reform that fails in practice,” Kleynhans concluded.