(Trinidad Guardian) Rampant inefficiencies in the Water and Sewerage Authority (WASA) project management department have led to the beleaguered State-owned company procuring $81 million in pipelines they may not have needed.
This was just one of the shocking findings contained in a 35-page report by WASA’s Internal Audit Compliance Department (IACD) into the authority’s procurement of 38,480 lengths of pipes valued at $223 million from Chinese based firm Xin Xing Ductile Pipes Company Ltd since 2013. The 38,480 pipes cover a distance of 235.14 kilometres and it marked the largest purchase in WASA’s history.
The pipes were bought for the execution of 28 projects geared towards improving WASA’s reliability and regularity of its pipe-borne supply to its 400,000-plus customers.
Eight years later, however, the report, dated September 16, 2021 and obtained by Guardian Media, has found that 16 of the 28 projects are still incomplete after millions of taxpayers’ dollars have been spent.
The report also uncovered discrepancies in the procurement process for the pipes, irregularities in the shortlisting and evaluation procedures and lack of due diligence by WASA’s management.
The audit concluded that every aspect of WASA’s project management cycle had been plagued with inefficiencies which resulted in the over procurement of pipes valued at $81,284,659.74
The fact that 16 projects had not been executed, the report stated, demonstrated the authority’s inability to execute projects within planned timeframes, while management did not have the autonomy and ability to determine the prioritisation of projects.
“The authority’s failure to adequately conceptualise projects resulted in pipes being procured for 10 projects that are no longer required. The IACD is of the opinion that the controls over the procurement of the iron pipes were unsatisfactory,” the report discovered.
Public Utilities Minister Marvin Gonzales ordered the IACD to commission the audit in March, in order to verify whether there was a legitimate need for the number of pipes procured, the reason for a large number of unused pipes in stock and ascertain if the procurement process was executed as an arm’s length transaction.
A review of the detailed report showed WASA purchased the pipes under the then People’s Partnership administration.
Funding for the projects was allocated under the 12-month Water Development Plan and Infrastructure Development and Consolidated Funds from the T&T government.
The pipes, ranging in diameters eight to 43 inches, were delivered to WASA in five tranches between March 2013 and May 2014 and the average cost per pipe was listed at $5,801.
Apart from the over procurement of the 16,045 pipes, the audit showed that two projects, namely Caroni Dualling from Couva to San Fernando and Naparima/Mayaro Road, were never executed but estimated to use 8,167 pipes valued at $61,067,787.56.
“It appears that the authority procured 873 pipes valued at $5,064,814.26 in excess of the quantities approved by the TC (Tenders Committee) at the 219th and 225th meetings. The TC approved the procurement of 37,607 pipes, yet 38,480 pipes were procured.”
The report stated that “the former Head, Water Projects explained that since Xin Xing’s cost was less than the authority’s estimate (38 per cent) spare pipes were also purchased for repairs and future projects. However, this was not adequately justified via votes to the TC.”
Also, 8,883 pipes priced at $26,045,566.41 were also procured for ten projects that were no longer required.
Of these projects, four were completed prior to receipt of Xin Xing’s pipes and should not have been included in the 28 projects.
Pipes were also purchased for six other projects, three of which had been duplicated, while an additional three were cancelled/discontinued. WASA spent $6,322,947.56 on 1,650 pipes for the three duplicated projects.
“This brings into question whether management was negligent or deliberately misled the TC when requesting approval for the quantities of pipes required,” the report stated.
The report cited two projects—Beetham/Sea Lots and Castara to Runnemede—that did not require pipes as confirmed by the former head of Water Projects, yet 1,250 pipes valued at $3,294,898.58 were procured for the projects.
“It should be noted that the former Head, Water Projects subsequently contradicted himself by indicating that the Beetham/Sea Lots project was executed at a reduced scope but no documentation was provided to substantiate this claim,” the report found.
The report discovered that one project —South Central Road—which had been discontinued was estimated to use 983 pipes, having an approximate value of $3,499,615,25.
Further analysis also showed that 12 completed projects used 1,878 pipes less than what was estimated.
Among the 12 projects is the Caroni Dualling South Transmission Main project, which is now 91 per cent completed after starting in 2017.
