Irregularities & Delays in CWA Projects Under the Previous Gov

The Ministry of Energy and Public Utilities is currently grappling with two sensitive cases that highlight questionable practices at the Central Water Authority (CWA) during the previous Gov. These cases showcase significant financial irregularities and alarming project delays.

Rivière-du-Rempart Water Treatment Project: From Rs 58.1 Million to Rs 161 Million

In May 2016, the CWA awarded a contract worth Rs 58.1 million for the abstraction and treatment of raw water in Rivière-du-Rempart, with an expected completion time of ten months.

However, by October 2019, the project was terminated after nearly three years of delays, leaving critical infrastructure, such as the pumping station, unfinished.

In response, a new contract was awarded in 2021 to complete the outstanding work, further inflating costs by an additional Rs 18 million.

Compounding the situation, a performance bank guarantee of Rs 5.1 million, intended to address the shortcomings of the initial contractor, was never claimed from the issuing bank.

This inaction raised pertinent questions about the accountability of the CWA.

Matters escalated in 2019 when the initial contractor initiated arbitration proceedings, seeking Rs 85 million in compensation.

These legal disputes added to a troubling record of costly conflicts confronting the CWA.

Plaine-Verte Pipe Network Upgrade: Estimated at Rs 153 Million, Final Costs Surge to Rs 223 Million

A second contentious case revealed further irregularities and a lack of oversight regarding a contract awarded in 2018 for the upgrade of the pipe network in Plaine-Verte, specifically Cité Martial.

Initially set to be completed in 18 months at a cost of Rs 153.3 million, the project faced a two-year delay, ultimately finishing in June 2022.

Additionally, the final project costs ballooned, with the contractor claiming Rs 223.2 million due to significant variations on site.

These cost overruns and delays shed light on serious deficiencies in project planning and inadequate oversight of contractual specifications, which have often been described as ambiguous.

Numerous Defi Media sources within the ministry have labeled these irregularities as troubling and underscored the urgent need for a comprehensive investigation into the dubious contractual practices that have characterized these projects.

CWA Pipe Replacement Program: Serious Irregularities Uncovered by Former Chief Internal Auditor in July 2024

Further compounding these issues, in July 2024, the former Chief Internal Auditor of the Central Water Authority—who resigned amid disagreements with former General Manager Prakash Maunthrooa—uncovered significant anomalies in the financial management of the internal pipe replacement program.

In her report, she criticized numerous breaches of governance standards.

The auditor revealed that nearly 44% of the funds earmarked for the program were diverted to other projects funded by grants, contrary to the original plans.

Moreover, the program lacked adequate monthly cash flow forecasting, hampering expense tracking.

The report also highlighted deficiencies in the accounting of transactions related to the project, which obstructed transparent management of purchases and materials.

The former auditor indicated a general lack of diligence in financial management and project planning, raising serious questions about the accountability of CWA management.

She also expressed dissatisfaction with the ineffective corrective actions taken in response to these irregularities, which ultimately led to her resignation after a period of internal conflict.

These revelations underscore the pressing need for an in-depth investigation into the management of public funds and governance practices within the CWA.

Source: Defi Media