Auditor Questions Board Of Water Supply Spending
BWS Officials Say Audit Off Target
POSTED: 5:23 pm HST October 26, 2006
UPDATED: 10:06 am HST October 27, 2006
Email
Print
HONOLULU -- A new audit of the Board of Water Supply uncovers millions of dollars in questionable spending.The audit comes out as Oahu water rates are going up for the first time in 11 years.The Board of Water Supply said much of the criticism is off base.
Read the City Auditor's full report
One of the targets of the BWS audit was a project KITV first investigated four years ago that cost more than $1 million with very little to show for the investment.In 2002, KITV discovered the Board of Water Supply outfitted a rarely-used meeting facility at Kapolei Hale, where second- and third-world leaders were supposed to meet experts from the Board of Water Supply and private companies to hire for public works projects.The Water Board Supply spent $1.4 million on the small office space. In return, the project generated only one $6,000 contract from a utility in American Samoa."No, I don't think it's wasteful. I think it's good business to try things and to look at risk and you're going to have to take risks, and in any business you're going to have some ventures that are successful and some that are not as successful," BWS Manager Cliff Lum said.Lum took over as Board of Water Supply manager in January. He was not in charge when most of the questionable expenses happened.The audit also criticized more than a $500,000 in bonuses paid to 49 BWS employees, including $63,000 to former BWS Manager Cliff Jamile."Currently, we have not issued any bonuses. That is primarily a fiscal decision," Lum said.The city auditor also questioned the wisdom of the water board's $48 million purchase of a recycled water facility from the city's Honouliuli Sewage Treatment Plant."The fact that Honouliuli produces anywhere from 8 million to 10 million gallons of water per day that we can use instead of using our drinking water supply is by far a good investment," Lum said.The amount of money the water board spends on maintaining its water pipes has decreased in recent years, the city auditor said. BWS officials denied that."I think it's increased. I think our data show that it's actually increased, over the long run," Lum said.The audit should not have focused only on pipelines and water main breaks, Lum said."We have to put money into different things: wells, storage facilities, reservoirs, etc. -- not simply pipelines," he said.The Board of Water Supply told KITV late on Thursday afternoon that the city will credit it for the $1.4 million spent on the little-used office in Kapolei. That's because the water board is not using the space, and the city auditor, who drafted the critical report, has moved into that office.
Read the City Auditor's full report
One of the targets of the BWS audit was a project KITV first investigated four years ago that cost more than $1 million with very little to show for the investment.In 2002, KITV discovered the Board of Water Supply outfitted a rarely-used meeting facility at Kapolei Hale, where second- and third-world leaders were supposed to meet experts from the Board of Water Supply and private companies to hire for public works projects.The Water Board Supply spent $1.4 million on the small office space. In return, the project generated only one $6,000 contract from a utility in American Samoa."No, I don't think it's wasteful. I think it's good business to try things and to look at risk and you're going to have to take risks, and in any business you're going to have some ventures that are successful and some that are not as successful," BWS Manager Cliff Lum said.Lum took over as Board of Water Supply manager in January. He was not in charge when most of the questionable expenses happened.The audit also criticized more than a $500,000 in bonuses paid to 49 BWS employees, including $63,000 to former BWS Manager Cliff Jamile."Currently, we have not issued any bonuses. That is primarily a fiscal decision," Lum said.The city auditor also questioned the wisdom of the water board's $48 million purchase of a recycled water facility from the city's Honouliuli Sewage Treatment Plant."The fact that Honouliuli produces anywhere from 8 million to 10 million gallons of water per day that we can use instead of using our drinking water supply is by far a good investment," Lum said.The amount of money the water board spends on maintaining its water pipes has decreased in recent years, the city auditor said. BWS officials denied that."I think it's increased. I think our data show that it's actually increased, over the long run," Lum said.The audit should not have focused only on pipelines and water main breaks, Lum said."We have to put money into different things: wells, storage facilities, reservoirs, etc. -- not simply pipelines," he said.The Board of Water Supply told KITV late on Thursday afternoon that the city will credit it for the $1.4 million spent on the little-used office in Kapolei. That's because the water board is not using the space, and the city auditor, who drafted the critical report, has moved into that office.
Previous Stories:
- May 15, 2006: Board Of Water Supply Lays Out 5 Years Of Rate Hikes
- June 14, 2002: Taxpayers Pay For Little Used Water Board Rooms
Copyright 2007 by TheHawaiiChannel.com All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
