By Gaongalelwe Tiro
Chief Financial Officer Andisa Zinja presented the 2024–25 financial results at the launch of the Integrated Annual Report, giving stakeholders a clear sense of TCTA’s audit outcome, financial statements and overall cash flow health. Her remarks also outlined the organisation’s goingconcern assessment as it prepares for its transition into the National Water Resources Infrastructure Agency.
Ms Zinja confirmed that the Auditor-General issued an unqualified audit opinion. She explained that the audit report includes a material uncertainty related to going concern, which is tied to the timing of TCTA’s de-establishment once the Minister announces the transfer date. She assured guests that “there will be no cessation of the functions currently being conducted by TCTA” and that the financial statements were prepared on a going-concern basis.
Turning to the financial statements, Ms Zinja highlighted a strong position for the year under review. Total assets rose to R25.17 billion from R20.23 billion in the previous year. Noncurrent assets grew by R4 billion, and current assets increased by R874 million. Retained earnings climbed to R7.48 billion. She said the increases in noncurrent and current liabilities were driven mainly by project funding requirements and operational needs.
She then turned to borrowing activity, which continued to track project progress. The Vaal River System recorded a R3.3 billion drawdown, while VRESAP borrowings decreased following a R332 million repayment. Other projects, including Berg Water, KWSAP and MCWAP, showed lower balances as repayments continued in line with loan agreements. Further analysis showed growth in tariff receivables. Ms Zinja linked the rise to increased activity on Phase 2 of the Lesotho Highlands Water Project and higher royalty costs. Presenting the statement of financial performance, she noted a surplus of R1.33 billion.
Finance income decreased because of higher facility utilisation, while finance costs rose as new MCWAP 2A funding came into effect. A re-estimation gain of R1.54 billion on tariff receivables strengthened the overall surplus.
Cashflow results also reflected positive movement. Total cash increased to R7.06 billion from R6.37 billion, supported by recoveries from socially funded projects and borrowings for the Vaal River System. Most cash is held in short-term investments that can be converted when required.
To conclude her presentation, Ms Zinja highlighted progress in resolving irregular, fruitless and wasteful expenditure. She confirmed that “95 percent of the remaining balance has been cleared” and noted improvements in internal controls. She closed by reaffirming that TCTA remains financially stable as it prepares for its transition into the new Agency.
