ACTis has raised two flags for PUCMA and placed two under monitoring.
As a newly established institution, PUCMA operated within a transitional governance arrangement for most of the period under review. Continued reliance on DWS for key financial and administrative functions limited its operational independence and meant that many control functions were outside its direct management. As a result, some of the weaknesses identified reflect an institution still developing its governance structures, systems and administrative capacity, rather than entrenched internal control failures.
As responsibilities, staff and systems continue to be transferred from DWS, there is a risk that existing DWS governance or control weaknesses could also be brought into the new institution if they are not identified and addressed during the transition.
There are concerns about the leadership appointments made at PUCMA. A Board member and the newly appointed Chief Executive Officer (CEO) have previously faced allegations of maladministration at other water entities. This requires attention since, in a newly established institution, senior leadership plays a significant role in shaping organisational culture and establishing financial and administrative systems.