P40 billion in question: WUC dismisses whistle-blower report as false

Water Utilities Corporation (WUC) has dismissed reports alleging irregular inflation of P40 billion in projects under the National Development Plan 11 (NDP11), branding them false and malicious.

The widely-circulated report claims that WUC inflated project costs by up to 100 per cent, pushing the budget from P20 billion to P40 billion without proper approvals. According to insiders, the allegations originated from disgruntled former employees.

The whistle-blower report alleged that variations exceeded the 25 per cent threshold set by the Public Procurement Regulatory Authority (PPRA), bypassing the Ministry of Finance, the Public Finance Management Act (PFMA), and WUC’s own board. On Quality Assurance and Quality Control, the whistle-blower report called for a targeted Audit/Review on planned NDP11 work versus as-built, complete and commissioned works is required.

It further claimed that despite billions spent, many water and sanitation projects remain non-operational. “P40 billion Government coffers wiped out in five years, with pipes buried underground, but there is still no water coming out or sanitation projects operational,' the whistle-blower said.

“Forensic audit should target NDP11 MLWS/WUC financial flows and irregular variations with 90 per cent of projects implemented between 2019 and 2025, averaging at a variation of around 100 per cent against a legal regulated threshold of PPRA set at 25 per cent allowable variation. Anything above requires cabinet and parliament for approval - not PPRA, as it does not have authority and certainly not the WUC board.”

However, the parastatal has dismissed the widely circulated report. According to WUC, the author behind the “fabricated report” is a disgruntled former senior executive officer who, at some point, was subjected to another senior executive position interview, which he failed and was dropped. The employee would then go on to claim that he was fired.

“The so-called variations are not direct work variations, but they are Consumer Price Adjustment (CPA). This project was done during COVID. WUC is a government parastatal and has no business with any individual political party,' WUC said in response to claims of having financed the BDP.

According to the claimed escalation, Masama 100km at circa 90 per cent variation; Maun Sanitation works Circa 75 per cent variation; ⁠NSC2.2 at around 80 per cent variation; ⁠NSC2.3 at around 80 per cent variation; ⁠Molepolole - Monoonyane at 50 per cent variation; and ⁠Lobatse pipeline at 60 per cent variation.

The WUC obtained variations are Masama 100km at circa 13 per cent variation; Maun Sanitation works Circa 10 per cent variation; ⁠NSC2.2 at around 28 per cent variation; ⁠NSC2.3 at around 11 per cent variation; ⁠Molepolole - Monoonyane at 18 per cent variation; and ⁠Lobatse pipeline at five per cent variation.