Forensic Accountant to be appointed to examine projected NI Water overspend
The Department for Infrastructure is to engage forensic accountancy services to investigate the reasons why NI Water has been unable to live within its resource budget allocation this year.
The decision to start the process of appointing a forensic accountant, which was announced today by Infrastructure Minister Liz Kimmins in anxa0Oral Statementxa0to the Assembly, comes after NI Water informed the Department that it is forecasting an overspend for this financial year.
Speaking in the Assembly, Minister Kimmins said:xa0“Protecting public funds is of the utmost importance, particularly in light of the wider pressures faced not only in my own Department, but across all areas of public services.xa0
“Difficult decisions are having to be made across all Departments and Arm’s Length Bodies and therefore it is essential that I fully understand the budgetary management decisions that the Board of NI Water has taken this year that have led to this disappointing outcome.xa0 xa0
“My decision to appoint a forensic accountant is a necessary step, that takes a measured approach, to help us work in partnership with NI Water and enable better planning going forward in these times of constrained budgets.”
NI Water has received a total of £152m resource this financial year.xa0
This was an opening resource budget allocation ofxa0£137m, representing almost one quarter of the total resource allocation available to thexa0 Department.xa0
An additional £11.5million resource was secured for NI Water in- year.xa0In addition, £2.9million was also provided to deal with the aftermath of Storm Eowyn.
McMurray says NI Water will not escape damaging financial pressures as long as funding model continues
NI Water will never escape damaging financial pressures so long as the Infrastructure Minister clings to its existing failed funding model, Alliance Infrastructure spokesperson Andrew McMurray has warned.
He was speaking after the Department for Infrastructure announced plans to appointment a forensic accountant to investigate the reasons why NI Water has been unable to live within its resource budget allocation this year.
“Today’s news is concerning and it is important due process is carried out to get to the bottom of the situation,” said South Down MLA McMurray.
“That does not distract from the wider reality that NI Water will never be in a sustainable financial position so long as the Minister clings to a failed funding model that leaves our water infrastructure system without the investment it needs.
“Alliance has warned repeatedly of the societal, economic and environmental harm being caused by this approach, but successive Ministers have buried their heads in the sand and reached for a series of sticking plaster solutions that will barely make a dent in the funding shortfall facing NI Water.
“Proposals around developer contributions are the latest example of that, despite there being no certainty around how much funding the policy would raise and the very real risk it will simply drive up house prices and make homeownership even harder for lower-income families.
“The Minister needs to get to grips with the situation and bring NI Water into community ownership, so it can borrow against its asset base and invest that money in desperately needed improvements to our over-stretched water infrastructure.
“Without these steps, NI Water will continue to face damaging financial pressures and our communities and economy will continue payingxa0thexa0price.”
