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UK regulator Ofwat should ensure all water companies have internal auditors given concerns over the financial stability of several big suppliers, an industry body has said.
Three water companies — South East Water, Sutton and East Surrey Water and Portsmouth Water — all lack internal audit functions, the Chartered Institute of Internal Auditors said in a letter to Ofwat chief executive David Black, placing them at greater risk of breaching their statutory duties.
“This is concerning given the complex operational and financial landscape these companies navigate, involving the management of critical national infrastructure and environmental responsibilities,” the CIIA said.
The lack of internal auditors within water companies “represents a significant weakness in their audit and corporate governance framework, which we believe should be addressed by Ofwat”, it added.
The letter comes amid growing concerns about the financial stability of several water suppliers, including the largest, Thames Water, which is under threat of being put into special administration by the…
