AG recommends that NWC set an internally funded budget based on what can be realistically afforded

The Auditor General (AG) has recommended that the National Water Commission (NWC) set an internally funded budget based on what can be realistically afforded.

The AG noted that the NWC’s expenditure for capital projects was below planned levels over a five-year period from 2019 to 2024 attributable to limited financial resources.

Capital spending is money used to build, repair and upgrade water pipes, pumping stations, treatment plants and other water infrastructure.

Over that period NWC planned to spend $44.92 billion on capital projects.

In a report tabled in Parliament yesterday the A-G said the audit was commissioned to evaluate the efficiency and effectiveness of NWC’s management of capital projects and to assess alignment with the organisation’s budget and strategic objectives.

It said the NWC consistently spent less on water infrastructure than it planned and that the budget for internally funded capital projects was not aligned with NWC’s financing capacity.

The AG said the NWC was unable to meet the financing requirements for internally funded projects due to ongoing losses, low liquidity and increasing payables.

This as the budget for internally financed projects increased from $1.5 billion in 2019 to $2.1 billion in 2024 without corresponding improvements in NWC’s ability to generate adequate financing from its internally generated revenues.

The AG noted that whereas the NWC developed water supply improvement plans to inform its capital investment plan for 2015 to 2030 there was inconsistent scoring for the prioritisation of capital projects.

It said the NWC was not effective in meeting key performance indicator targets for operational efficiency and except for 2022 revenue growth over the review period.

Further throughout the review period, it was not evident that N-W-C measured and reported on KPI’s for the percentage of the population with access to potable water and sewerage services, critical indicators for assessing progress towards its stated goals.

Subsequently in November 2025 NWC provided data on these KPI’s for 2024.

The AG recommended that as a first step, NWC should immediately develop a robust mechanism for ranking and prioritising capital projects.

This framework must extend beyond the entity’s current financial constraints ensuring that all relevant factors are considered when determining project priority.

To uphold the principles of good corporate governance and budget credibility, NWC should also enhance its financial reporting framework to ensure transparency, effective oversight, and informed decision-making.

The AG said the weaknesses identified by the audit explain why NWC customers experience low water pressure, irregular water supply or unreliable sewerage services.

When NWC under-spends its capital budget due to limited financial resources, critical repairs and upgrades are delayed.

When the financial system fails and reporting is incomplete, neither the government nor the public can properly hold NWC accountable.

Citing the NWC’s aging infrastructure, the AG pointed out that consistent and well-managed capital investment is essential to ensure that customers have reliable access to safe water and sanitation services.