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18 January 2011
Last updated at 12:49 ET
The BBC has learned that an assembly committee's draft report into Northern Ireland Water is sharply critical of the department of regional development.
The report described the department's arrangements for overseeing NI Water as "the worst of all possible worlds."
It called for a major overhaul of procedures around procurement practice.
There is also criticism of DRD permanent secretary Paul Priestly, who is currently suspended, and former NI Water chief Laurence MacKenzie.
The Public Accounts Committee has been carrying out an inquiry into performance and governance issues at NI Water.
The review was prompted after another report found that millions of pounds of contracts were being awarded without proper competitive tendering.
BBC political correspondent Martina Purdy said a draft copy of the committee's review made a number of damning conclusions about the department and its management of the government owned company.
She said it concludes that more time should have been given for a review which saw four directors sacked over the failure of NI Water to ensure competition when handing out contracts.
It also called for a comprehensive review of the relationship between NI Water and the department.
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The report described the department's arrangements for overseeing NI Water as "the worst of all possible worlds."
It called for a major overhaul of procedures around procurement practice.
There is also criticism of DRD permanent secretary Paul Priestly, who is currently suspended, and former NI Water chief Laurence MacKenzie.
The Public Accounts Committee has been carrying out an inquiry into performance and governance issues at NI Water.
The review was prompted after another report found that millions of pounds of contracts were being awarded without proper competitive tendering.
BBC political correspondent Martina Purdy said a draft copy of the committee's review made a number of damning conclusions about the department and its management of the government owned company.
She said it concludes that more time should have been given for a review which saw four directors sacked over the failure of NI Water to ensure competition when handing out contracts.
It also called for a comprehensive review of the relationship between NI Water and the department.
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