| (2) | A direction in terms of subsection (1) must set out— |
| (a) | the nature of the failure; |
| (b) | the steps which must be taken to rectify the failure; and |
| (c) | a reasonable period within which those steps must be taken. |
| (3) | If the water services intermediary fails to rectify its failure within that period, the water services authority may— |
| (a) | after having given the water services intermediary a reasonable opportunity to make written submissions to it; and |
| (b) | after having afforded the water services intermediary a hearing on any submissions received, |
take over the relevant functions of the water services intermediary.
| (4) | Where a water services authority takes over any functions in terms of subsection (3)— |
| (a) | it may exercise all relevant powers and perform all relevant duties on behalf of the water services intermediary to the exclusion of the water services intermediary; and |
| (b) | it may use the infrastructure of the water services intermediary to the extent necessary to perform those functions. |
| (5) | A water services authority may appoint another water services institution to act on its behalf in performing the functions of a water services intermediary in terms of subsection (4). |
| (6) | As soon as a water services intermediary is in a position to resume its functions effectively, the water services authority must stop exercising the powers and performing the duties on the intermediary's behalf. |
| (7) | A water services authority map recover from a water services intermediary— |
| (a) | all outstanding expenses which it incurred; and |
| (b) | all losses which it suffered, |
as a result of having acted in terms of this section.
