Auditor General's Findings
NWC did not lodge $0.7 billion collected from customers into the designated K-Factor Account. Over the period April 2008 to September 2014, NWC collected approximately $ 16 billion for K-Factor from customers.
However, only $15.3 billion (94 per cent) was deposited into the K-Factor bank account. NWC transferred $1 billion from K-Factor funds to finance administrative expenses. NWC established a Project Management Unit (K-Factor Unit) to manage the K-Factor programme.
In a letter dated January 22, 2013, OUR agreed with NWC decision that the administrative activities of the K-Factor Unit would by NWC. However, NWC instituted a supervision cost of 8.5 per cent of project cost, which amounted to $1.08 billion, and was transferred to NWC operational bank accounts in August 2013. NWC did not present the requisite approval from OUR for the imposition of the supervision cost.
Permanent Secretary (current): Audrey Sewell
Breach Category: Resource Management
Permanent Secretary (at breach):
Breach Type: Unsupported Decisions