KINGSTON, Jamaica — The Government says it accepts the findings of the Auditor General’s Performance Audit Report on the National Water Commission’s (NWC) management of capital projects and budget execution, while noting that several corrective measures identified in the report are already being implemented.

In a statement on Wednesday, Water Minister Matthew Samuda said the audit was consistent with the Auditor General’s constitutional mandate to promote accountability and value for money in the use of public resources.

The report identified several areas requiring urgent attention, including weaknesses in capital project prioritisation, procurement timelines, contractor management, reporting systems, liquidity pressures and the long-standing backlog in audited financial statements.

However, Samuda said the findings should be viewed within the broader operational and economic realities that affected the NWC during the period under review.

He noted that the COVID-19 pandemic disrupted contractor workforces and global supply chains, resulting in scope changes, cost escalations and contract variations across several projects. He added that those challenges were compounded by higher shipping and commodity costs, severe drought conditions and escalating energy prices.

Samuda further stated that the downturn in Jamaica’s tourism sector during the period reduced water consumption revenues from a key commercial customer base, placing additional strain on the commission’s cash flows.

“These combined shocks affected infrastructure programmes and utility providers worldwide and were not unique to Jamaica,” he said.

The minister said the Government nevertheless accepted that the institutional weaknesses identified in the audit must be addressed and supported the NWC’s acceptance of the Auditor General’s recommendations.

“What is equally important to place on record is that this corrective process is already underway. Several of the recommendations identified in the audit have already been acted upon or are actively being implemented, reflecting an institutional reform effort within the NWC that predates the audit’s publication,” Samuda said.

According to the statement, the NWC is developing strategic master development plans for each region to guide capital project prioritisation and create an islandwide framework for investment proposals.

The ministry also said directives have been issued to the purchasing unit to incorporate price adjustment provisions into contract conditions to address cost volatility experienced during and after the pandemic.

On project readiness, Samuda said the commission was actively addressing challenges related to public sector procurement and land acquisition through internal reforms and engagement with external agencies.

He added that efforts were also underway to better align procurement and financing processes, while shortcomings in automated financial reporting systems were being addressed through system improvements and manual backup measures.

The statement further noted that reporting to the ministry and the NWC board was being strengthened through the commission’s Enterprise Development and Performance Monitoring Division and that the finance division had committed to clearing the backlog of audited financial statements “in the shortest possible time”.

Samuda said the ministry would work closely with the NWC board and management to monitor implementation of the corrective measures and ensure progress against the timelines established in the report.

Despite the challenges highlighted by the audit, he said the Government remained committed to improving Jamaica’s water sector, pointing to what he described as unprecedented investment in water infrastructure over the past five years.

“Over the past five years, more has been invested in water infrastructure than in the past forty years,” Samuda said.

He said the Government had advanced one of the most ambitious water infrastructure expansion and rehabilitation programmes in the country’s history, aimed at improving water production, expanding service coverage, reducing non-revenue water, strengthening drought resilience and modernising ageing infrastructure.

Samuda also pointed to a finding in the audit that approximately 70 per cent of the NWC’s infrastructure is more than 40 years old, arguing that the utility had operated for decades with investment levels that were insufficient to maintain and modernise water and wastewater systems.

“We view this audit not as an endpoint, but as a roadmap for strengthening the governance and long-term resilience of Jamaica’s water sector,” he stressed.

The minister said the Government remained committed to ensuring that the NWC becomes a more financially sustainable, operationally efficient, transparent and customer-focused utility, while delivering reliable water and wastewater services to Jamaicans.