NI Water £3m overspend leads to investigation

Forensic accountants have been instructed to investigate why NI Water has been unable to live within its budget.

The decision by Infrastructure Minister Liz Kimmins comes after NI Water informed her department of an estimated overspend of about £3m.

Kimmins said the Department for Infrastructure (DfI) had frequent engagement with NI Water throughout the year and had "given as many opportunities as possible to try and ensure they are doing everything they can to live within their budget."

NI Water said it would "be working with DfI in line with Minister's instructions".

Speaking during a statement in the Northern Ireland Assembly, Kimmins said her department had allocated a budget of £137m to NI water, which represented almost a quarter of the the department's budget.

In addition to this, NI water also received £11.5m during the financial year, as well as £2.9m to deal with the aftermath of storm Éowyn.

"It's hugely disappointing that despite ongoing engagement with the chair on the need to live within budget, the board of NI Water has decided not to take action to do so," Kimmins said.

"I hope that everyone will recognise that my decision to appoint a forensic accountant is a necessary step, that takes a measured approach."

The minister said protecting public funds was of the utmost importance, particularly in light of the wider pressures faced across all areas of public services.

"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" she added.

Alliance infrastructure spokesperson Andrew McMurray said the news was "concerning" and that the investigation needed to get to the bottom of it.

"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," he added.

McMurray said the minister needed to get to grips with the situation" and said NI Water should be brought into community ownership.

Social Democratic and Labour Party (SDLP) infrastructure spokesperson Mark H Durkan said he had asked the minister "to ensure the remit of the appointed forensic accountants will include assessment of NI Water's current funding model and commit to change if necessary".

"The SDLP has repeatedly highlighted the underfunding of NI Water, but also the issues caused by the way funding is currently allocated," he said.

"This has fallen on deaf ears and left us in the situation we now find ourselves."