Chase your debtors - PUWU pushes GWCL
The Public Utilities Workers Union (PUWU), has urged management of the Ghana Water Company Limited (GWCL) to take pragmatic steps to recover money owed it by consumers of water in the country.
It also tasked management of the water company to ensure that consumers who refused to pay their bills were prosecuted to serve as deterrent to others.
The Deputy General Secretary of the PUWU, Mr Michael Adumatta, made the call at the 50th anniversary celebration of the GWCL in Accra on October 20 on the theme: “Ghana Water @50 Potable water provision in Ghana; prospects for the future.”
According him, considering the cost of projects meant to ensure continuous water supply to the people, there was need for the company to be liquid to meet its financial obligations.
“The GWCL needs funds to operate”, he said, adding that, it was for that reason the company needed to go all out to ensure that those who consumed water provided by the company paid for it.
Debt owed GWCL
The debt owed the company is said to be running into several millions of cedis. The worst of the debtors are government institutions who are said to owe more than 60 per cent of the total amount owed the water company.
The size of the debt is said to be choking the water company as it is unable to embark on regular maintenance of its plants and expand to grey areas to achieve universal access to water as spelt out in the Millennium Development Goals (MDGs).
At this time when the government is pushing for state owned institutions to borrow on their balance sheets, it is imperative for the company to ensure that the debt owed it is drastically curtailed to enable it to attract funds at cheaper rates from the international market.
Although the water company is pushing for a tariff increase, some consumers are arguing against the move as they claimed that the request will not improve the financial position of the GWCL but rather burden the regular consumers who always honour their obligations.
Against this background, Mr Adumatta called on the government agencies, Metropolitan, Municipal and District Assemblies, the worst culprits as far as the debtors list of the company was concerned, to honour their obligations to the company to enable it move out of its present financial distress.
Considering the new debt management policy, he urged the management to adopt innovative approaches in raising funds to fund the company’s operations.
Case for higher tariffs
The Managing Director of the GWCL, Ing. Frederick C. Lokko, justifying the demand for higher tariffs said the government no longer guaranteed loans for water projects under the new policy.
“Funding for capital expansion works which hitherto was absorbed by the government is now to be borne by us under the new debt management policy, and this means that we must operate in a more efficient manner. It also means that we need much higher water tariffs than we are currently operating with,” he stated.
Therefore, he said demand in higher tariffs was needed to enhance its operations for it to provide potable water to more people.
The GWCL is demanding 124 per cent increment in water from GH¢1.78pesewas per 1,000 litres to GH4 per 1,000 litres.
The Minister of Water Resources Works and Housing, Dr Kweku Agyemang Mensah said the GWCL, by dint of hard work and exhibition of high professionalism, had made the company admirable across the continent.
With support from partners, he said, the company could boast of a number of projects including the Kpong Water Supply project and Teshie–Nungua Sea Water Desalination projects aimed at delivering safe, adequate and affordable water for Ghanaians. — GB
