The new board of the Central Water Authority (CWA), expected to take office early next year, must review the Internal Audit Report prepared by Yousra Lalmohamed. Although she resigned, the former Chief Internal Auditor may need to clarify certain aspects of her investigation. The board should also investigate how the Rs 700 million loan, disbursed in two Rs 350 million tranches for pipe replacement, was spent. Minister of Public Utilities Patrick Assirvaden stressed the importance of this review. He stated, “As a minister, I can provide policy guidelines. However, we must determine if the previous CWA management replaced pipes with the funds and whether splitting contracts was legal.â€
The loan agreement included several conditions. For example, the CWA needed to open a dedicated account and use the funds only for pipe replacement. Yousra Lalmohamed conducted an audit to assess compliance before the second tranche’s release. Her findings revealed multiple issues, which prompted the CWA management to request a favorable report from the Ministry of Finance. This action allowed the full Rs 700 million to be released.
Fund Management Concerns
Yousra Lalmohamed discovered significant issues with fund management during her audit. She found that the CWA used an account containing consumer revenues and expense transfers instead of opening a separate one for the pipe replacement program. This decision blurred the tracking of funds meant for the project. She also noted irregularities in equipment purchases. For instance, the project lacked cash flow forecasts to show past and planned expenses.
The audit highlighted additional concerns. Equipment purchases did not follow a specific coding system, which made inventory management impossible. The absence of a worksite register further complicated the tracking of materials. Additionally, the agreement between the ministry and the CWA required a performance review committee to oversee the project, but the committee was never formed.
Lalmohamed identified conflicting expense reports provided by the CWA, which added more uncertainty. These inconsistencies prevented her from verifying whether the funds were used exclusively for pipe replacement. She concluded that the CWA violated its commitments. As a result, she recommended withholding the second tranche until corrective actions were implemented. Following the submission of her report, she resigned, citing harassment by the management as her reason for leaving.
Courtesy of L’express
For article publication inquiries, feel free to get in touch.
