The Johannesburg Stock Exchange has issued a public censure against the Komati Basin Water Authority (KOBWA), citing repeated failures to comply with its disclosure obligations under the Debt and Specialist Securities (DSS) Listings Requirements.
The sanction relates to KOBWA’s delayed publication of a Stock Exchange News Service (SENS) announcement concerning the appointment of its executive operations director. While the appointment took effect on 11 August 2025, the announcement was only released on 19 November 2025.
KOBWA is a binational entity established by treaty between South Africa and Eswatini to manage key water infrastructure in the Komati River Basin, including the Driekoppies Dam in South Africa and the Maguga Dam (pictured) in Eswatini. The authority plays a role in regional water supply, irrigation, and power generation, and has recently been the subject of a revised bilateral treaty aimed at strengthening water security and co-operation.
In its SENS notice dated 20 April 2026, the JSE found that KOBWA had breached paragraph 6.42(a) of the DSS Listings Requirements, which requires issuers to notify the exchange – through a debt sponsor or designated person – of changes to directors, including appointments and the reasons for such changes.
The latest incident marks the fourth recorded breach by KOBWA in recent years. According to the JSE, these include:
- A late announcement in 2022 relating to key executive management and board changes.
- A late announcement in 2023 concerning a board change.
- A late announcement in 2025 relating to the appointment of new auditors.
- The current late announcement in 2025 regarding a board change.
The JSE said that “despite repeated regulatory engagement and prior censures, the issuer has continued to demonstrate recurrent non-compliance, including repeated failures to ensure the timely disclosure of announcements”.
The JSE emphasised that the timely publication of SENS announcements is essential to maintaining transparency and ensuring “a fair and orderly market”, because it enables investors to receive “timely and pertinent information” about an issuer. It added that “strict adherence to these timeframes is fundamental to sound corporate governance”.
The exchange noted that “the issuer has previously relied on its internal governance structures and advisory support as safeguards against further lapses”. It stated that the recurrence of delayed disclosures “points to material weakness in the issuer’s compliance framework and reflects an ongoing disregard for the obligations imposed by the DSS Listings Requirements”.
Having regard to the breach and KOBWA’s repeated history of similar contraventions, the JSE imposed a public censure, alongside a financial penalty of R500 000.
The fine has been suspended for three years, on condition that KOBWA is not found to be in breach of the DSS Listings Requirements during this period. If further contraventions occur, the suspended fine may be enforced in addition to any new penalties.
