Audit Exposes Chaos in CWA’s Rs 1 Billion Pipe Replacement Scheme

The Central Water Authority (CWA) is facing demands for hundreds of millions of rupees from a dozen contractors for pipeline replacement work, despite a complete absence of formal contracts or written agreements. This unusual situation has left the CWA unable to disburse payments for work it alleges was done without proper documentation.

Financial and Political Turmoil

This scandal, which centres on the In-house Pipeline Replacement Programme, first launched in 2023 to replace 437 kilometres of water pipes, has been complicated by the widespread use of sub-contractors, described by CWA insiders as a “veritable spider’s web” of entangled relationships.

Initial investigations by the parastatal body have also uncovered potential links between certain sub-contractors and individuals close to the ruling Militant Socialist Movement (MSM).

One name, in particular, has reportedly been mentioned in connection with these dealings.

The CWA has since referred multiple case files related to the programme to the Financial Crimes Commission (FCC).

The commission was already investigating the matter after a sub-contractor raised the alarm, alleging that contracts had been awarded without following proper tendering procedures.

Project managers, CWA engineers, and inspection officers have all been questioned as part of the ongoing inquiry.

Internal Audit Exposes Deficiencies

An internal audit, commissioned in July 2024 by the Ministry of Public Infrastructure, revealed significant deficiencies in the management and execution of the programme.

The audit was initiated following the departure of former CWA Director-General, Prakash Maunthrooa.

The audit report indicates that nearly 44% of the allocated funds were allegedly reallocated to other projects without authorisation, compromising the programme’s initial objectives.

In February 2025, Energy and Public Utilities Minister, Patrick Assirvaden, publicly condemned these irregularities.

Speaking in Parliament last March, the minister revealed that a budget of one billion rupees had been approved for the project under the 2024-2025 Budget.

However, a shocking Rs 1.5 billion had already been paid to the companies involved, vastly exceeding the initial budget.

The minister stated he had no information on the identities of the recipient companies, claiming payments were made with “total opacity.”

Of the 291 kilometres of pipes laid by the end of 2024, 34 kilometres were installed by sub-contractors and 112 kilometres by partner small and medium-sized enterprises (SMEs).

Source: Defi Media