Audit Report: Rs 700 Million Missing from CWA Accounts

A recent internal audit of the Central Water Authority (CWA) has uncovered alarming irregularities that have led to the disappearance of Rs 700 million from its accounts. The audit report, which has circulated since July 2024, was formally presented to the National Assembly on Tuesday, December 17, 2024, sparking intense discussions during the parliamentary question session.

The report, prepared by former Chief Internal Auditor Yousra Lalmohamed, highlighted significant flaws in the management of the CWA’s internal pipe replacement program for the fiscal year 2023-24.

The program was financed in two installments of Rs 350 million each, but the audit indicated that the allocated funds were mismanaged and not utilized as intended.

Minister of Energy and Public Utilities, Patrick Assirvaden, condemned the lack of transparency under the previous administration, particularly under former Director General Prakash Maunthrooa.

During the parliamentary session, he stated, “This report reveals the complete disappearance of Rs 700 million amidst total opacity under the former leadership of the CWA, who will eventually have to account for these discrepancies.”

Serious Management Flaws

Lalmohamed’s audit reported critical deficiencies in how the pipe replacement program was executed.

She identified that 44 percent of the expenditures associated with the allocated funds were instead used for unrelated projects financed by grants.

Furthermore, the audit pointed out a troubling lack of a separate bank account for the program, a stipulation that had been explicitly outlined in the financing agreement.

“Currently, the bank account in use also includes revenue from customers and transfers for unrelated project expenses,” Lalmohamed noted, emphasizing the complexity and increased costs of the financial process.

She illustrated this by stating, “Payments for the program are not made directly from this account.

For instance, on October 19, 2023, Rs 20.9 million were transferred to the SBM account, where all other payments are commingled.”

Breach of Agreement

Additionally, the former Chief Internal Auditor found that the CWA had failed to comply with several requirements set forth in the financing agreement signed in September 2023.

These included the absence of monthly cash flow forecasts, specific coding for transaction accounting, and a performance review committee.

“Our findings indicate that the CWA did not adhere to the terms and conditions of the agreement dated September 25, 2023.

As a result, we do not recommend the release of the second tranche of funds from the ministry at this time,” she stated.

The revelations in this audit report not only highlighted severe mismanagement within the CWA but also raise questions about accountability and governance in the agency.

As the parliamentary discussions continue, there are growing calls for a thorough investigation into the matter and for those responsible to be held accountable for the missing funds.

Issues of Opaque Management at CWA

Minister of Energy and Public Utilities, Patrick Assirvaden, has underscored that the recent internal audit report revealed a troubling pattern of opaque management under the previous leadership of the Central Water Authority (CWA), particularly targeting former Director General Prakash Maunthrooa. Maunthrooa has vehemently denied these allegations, describing them as “false” during a press conference.

“The audit report indicates a culpable omission on the part of the CWA, specifically implicating the former director general,” Assirvaden emphasized, drawing attention to the serious governance issues raised in the report.

Staffing Concerns Amidst Ongoing Controversy

In addition to the audit findings, Assirvaden reported significant staffing changes at the CWA since January 2023, including 128 resignations, nine leaves of absence without pay, and two instances of what he termed “disguised dismissals.”

This turnover is presenting a grim picture of the workplace environment, exacerbated by the ongoing controversy surrounding the agency’s pipe replacement program.

Former DG Critiques Audit Report

Prakash Maunthrooa, the former Director General, publicly criticized the audit report prepared by Yousra Lalmohamed, the former Chief Internal Auditor.

During a press conference in July 2024, he dismissed the findings, claiming, “The so-called Compliance Report is anything but a professional document in my interpretation.”

His remarks aimed to undermine the credibility of the report and the conclusions drawn from it.

Allegations of Retaliation Against Former Chief Internal Auditor

Assirvaden has also brought attention to the circumstances surrounding Lalmohamed’s resignation, which occurred following significant disagreements with the former CWA leadership.

He stated that she may have been targeted for retaliation due to her candid revelations.

“The actions taken by the former administration were intended to silence her reports or punish her for fulfilling her responsibilities,” he asserted.

The minister noted that he sought to meet with Lalmohamed to gain a deeper understanding of her experiences and the challenges she faced.

“It was clear from our conversation that she is still deeply affected by the treatment she received from the former CWA leadership.

She is clearly traumatized by the retaliation and the hostile environment she encountered while simply doing her job,” Assirvaden remarked.

He stressed the importance of acknowledging her courage and integrity in such a challenging context.

Future Actions and Investigations

When questioned by Labour Party MP Farhad Aumeer regarding potential actions to address these revelations, Assirvaden confirmed that an investigation is planned to ascertain accountability.

“In due course, the Board will decide who will investigate this report and what actions will be taken. However, we will need to wait for the reconstitution of the CWA’s board before these procedures can commence,” he outlined.

As discussions continue in Parliament regarding the audit report and its implications, the pressure mounts on the CWA to address these serious allegations and restore trust in its management practices.

Source: Defi Media