GWI was in a deplorable state when the new Government took office in August 2020, the utility said in a press release this week addressing questions that have arisen over layoffs.
“The company was on the verge of financial collapse. The utility made a significant operations loss of $1.1 billion at August 2020, despite significant increases in tariffs to customers in 2018 and 2019.
“The average employment cost was $94 million in 2015 compared to $239 million dollars in 2020. The total number of employees moved from 600 in 2015 to over 1300 in August 2020 and bank overdrafts were required to pay salaries. Payment of salaries to employees was delayed each month.
“Debt to suppliers totalled over $900 million at August 2020. In addition, GWI was indebted to GPL by $7 Billion as at August, 2020”, the press release said.
It added that over 5,000 customers were denied new service connections, while leak repairs could not be done because inventory was at zero. Over 10,000 leaks were fixed from September 2020 to March 2021, while important items such as pumps and motors were not available.
GWI said that the cost of a questionable water chemical called SeaQuest was $1.8 billion.
“It became necessary to reduce employment numbers and cost, which was decided upon following a consultative process and agreement among the Board of Directors, Management and the Workers Union”, the utility said
As it relates to water quality, there is no shortage of chemicals ( Alum, Lime and Chlorine) and quality meets WHO standards.
GWI said that the colour of the water is as a result of the iron from the aquifer. Additionally, a programme is in place to bring treated water to 90 percent of the population on the coast by 2025.
It noted that the recent $30 million fraud was perpetrated on a Commercial Bank and did not occur at GWI.
