NI Water bosses sacked after procurement probe
18 Mar 2010
Belfast, Northern Ireland – NI Water (NIW) chairman and three non-executive directors of the company have been dismissed following an investigation, which found serious irregularities in procurement practices at the Northern Ireland water utility.
The recently completed report, titled ’Review of Procurement Governance in NIW’, found that here had been ’a serious breakdown in the governance and control framework of NIW in relation to contract approvals.” It blamed the failings on the NIW Board and Executives responsible for ensuring compliance – NIW chairman Chris Mellor and John Ballard, Ruth Thompson, and Declan Gormley.
Announcing the dismissals, NI Regional Development Minister, Conor Murphy said: “In light of the findings of the [report], dismissed the Chairman of NIW, Chris Mellor, and a number of his non-executive Board colleagues. I have taken this step after a great deal of consideration of all the evidence.
I intend to take firm action to fully address the recommendations within the report, and have asked the NIW Chief Executive to work alongside my department in putting in place an action plan to do this. I have taken this step in order to provide a firm basis for the company to establish new governance arrangements, and to move forward with the confidence of the community.”
Following the conclusion of the Independent Review of NI Water’s procurement procedures, Chief Executive Laurence MacKenzie said: “My commitment to ensuring that appropriate financial controls are in place within NI Water is absolute. The Independent Review, jointly commissioned by me and by the Permanent Secretary of the DRD, has been a robust and challenging process, which has enjoyed the full cooperation of the entire organisation.
“The Review has now issued its Report, the Minister has considered its findings, and he has now taken steps to implement its recommendations. These include the need to put in place a detailed programme of work to ensure that the control weaknesses are addressed as a matter of urgency. This is my responsibility and one that I take extremely seriously.
“I look forward to taking the action necessary to improve controls and expect to be able to report early progress to the Minister. In the meantime, I would like to reassure customers that this has no effect on their service – the provision of clean drinking water and safe wastewater services remains the organisation’s primary focus.”