To ask the Minister for Infrastructure to outline the concerns that have prompted the current forensic audit into governance systems in NI Water.

Ms Kimmins

When I announced the audit, earlier in the month, the Department outlined concerns about governance and control matters in NI Water, and I will require further assurance on the adequacy of NI Water's risk management, governance and systems of internal control. The Department's concerns were intensified recently due to insufficient assurance; several raising a concern investigations; legacy and current breaches of a "Dear Accounting Officer" letter about the use of confidentiality agreements; procurement and contract management practices; and observations by the Department's representative on the NI Water board. I also wish to receive an assurance on compliance with 'Managing Public Money NI' and whether key decision makers have clear sight of information to support effective decision-making. It is incumbent on me, as Minister, to satisfy myself that the organisation's internal checks and balances are operating effectively and that its systems and processes are robust, effective and fit for purpose, especially as the company receives approximately half a billion pounds in taxpayers' money from my Department each year. The audit will provide an opportunity to assess governance arrangements thoroughly, support better planning and ensure full transparency for partners, stakeholders and the public.

Ms Kimmins

I hope that what I have outlined today demonstrates how seriously I am taking the issues that I have identified. The House relentlessly says that I need to give NI Water more money, but I need to ensure that the money that we give it is used properly. I say without prejudice that we have a number of concerns, and it is imperative that I satisfy myself that those concerns can be addressed. That is the rationale behind the investigation. The Member asked about timescales. I will publish the terms of reference once we have finalised them. I expect the audit to take around two to three months. I want it to be efficient but also thorough.

Mr Boggs

Minister, I welcome the steps that you have taken to ensure that the correct checks and balances are in place for what is a publicly funded organisation. Who will undertake the audit?

Ms Kimmins

I have instructed the group head of NI Civil Service internal audit to progress the forensic audit. As I said, I have asked for it to be done as quickly and as thoroughly as possible. I hope that that answers the Member's question.

Mr K Buchanan

Minister, you referred to the half a billion pounds that your Department gives NI Water. Do you have total faith in the leadership team at NI Water?

Ms Kimmins

I have no reason to doubt it. The point of the audit is to assure us that everything that is done in the organisation, particularly on governance, meets the standards that we expect. I have outlined my concerns about what has led us to that point. I am pleased that NI Water has said that it is willing to engage and be cooperative as part of the audit. The Member will be aware that I carried out a different forensic audit last year. This audit will further satisfy our concerns, and I hope that we can get a positive outcome to the issues.

Mr Stewart

Accountability and transparency are essential, Minister, particularly where public funding is involved, as you will know. You touched on the audit's remit. Have any individuals, be they internal or external to NI Water, come to you to raise their concerns about tendering practices and the awarding of contracts by senior officials in NI Water? How deep will the deep dive go in investigating those practices?

Ms Kimmins

In my initial answer, I said that several raising a concern investigations have been carried out to date. That is on the public record. The concerns that I mentioned have intensified recently owing to insufficient assurance, coupled with the raising a concern investigations; legacy and current breaches of a "Dear Accounting Officer" letter about the use of confidentiality agreements; procurement and contract management practices; and observations by the departmental representative on the NI Water board. As I said, I also wish to receive an assurance on NI Water's compliance with 'Managing Public Money NI' and on whether key decision makers have clear sight of information in order to support effective decision-making. That is probably as much as I can say until the audit is complete, but it is my intention to be as transparent as possible in order to ensure that the Assembly is kept updated on what comes out of it.

Mr McGlone

I thank the Minister for announcing the investigation, especially given that, in approximately the past year and a half, NI Water has spent £225,000 on investigations, the outcomes of which none of us knows. Minister, can you assure us — the public — that the audit will not be a toothless tiger, that it will not shy away from difficult questions and investigations into accountability and proper governance, in NI Water and at the Department, and that it will look at what appears to have been a very vindictive approach by NI Water to a key whistle-blower?

Ms Kimmins

The Member referred to one aspect of why we are carrying out the audit. I hope that it has been made clear that that is part of the picture. Both I and my Department have concerns about a number of different areas. That is the focus of the audit. For me, it is about getting a clear insight into the issues and being able to satisfy ourselves. The next steps will be dependent on what comes out of the audit. I hope that it gives confidence to the Assembly that I take the issues very seriously. Sometimes, in isolation, they do not look like massive issues, but, given what I have outlined here today, the severity is clear. I think that it would be remiss of me not to take the action that I am taking. Without going into any detail, I want to ensure that the audit is done without prejudice and that we update the House appropriately on the other side of that. I will make sure that the Member is kept informed at that stage.