The city’s two largest garbage disposal contractors have once again given notice to the Mayor and City Council (M&CC) of their intention to suspend their collection services if they are not paid hundreds of millions owed to them.
A source confirmed that City Hall received a letter from Puran Brothers Disposal Inc indicating that they would halt garbage collection on November 14.
However, the source explained that they did not receive any correspondence from Cevons Waste Management, although Stabroek News was told that the company has also issued a similar ultimatum.
Neither company could be immediately reached for comment yesterday.
Efforts made by Stabroek News to solicit a comment from Town Clerk Royston King also proved futile as an employee said that he was in a meeting.
Stabroek News was told that while the companies are owed sums in the hundreds of millions, the M&CC does not have the necessary financial resources to meet the debts.
The city continues to rack up debt as its recorded expenditure continuously outstrips its recorded income. Last month, it spent $161,683,750, which is more than double its recorded income.
In May, both firms had threatened to end their services to the council over debts owed by the city.
“We were owed $97 million and were paid $1.2 million. We keep asking the bank to bear with us as we have our own debts but there is only so much they can bear,” General Manager of Puran Brothers Waste Disposal Inc Kaleshwar Puran later told this newspaper in August.
Similar sentiments were expressed by Chief Executive Officer of Cevons Waste Management Morse Archer. “We are owed $168 million. We can’t go on. We have exhausted our monies and are existing at the mercy of people crediting us. If we don’t get substantial payment we will be forced to strike,” he said.
Due to financial difficulties, the administration had decided to assume responsibility for garbage collection in some wards in the capital. However, residents and businesses were upset over the poor service offered by the city. As a result, the council reallocated the commercial district to Puran Brothers.
