E/Region MDAs owe Water Company GH¢3.8m

Ministries, Departments and Agencies (MDAs) in the Eastern Region owe the Ghana Water Company Limited (GWCL ) more than GH¢3.8 million from January 2014 to March this year.

The Eastern Regional Director of the GWCL, Mr Ebenezer Aryee, in an interview with the Daily Graphic, described the current situation as dire, saying it could affect its operations if the MDAs did not take steps to settle their indebtedness to the company. "Currently, we are managing the situation the best way we can within the limited resources," Mr Aryee stated. 

Unwillingness to pay

 "I don't think we are failing to collect the money but payment is a big issue," he said. 

According to him, it was difficult for the GWCL to disconnect some institutions, particularly hospitals, clinics and other health facilities. 

"Some of the institutions have acknowledged owing us but they claim they need sometime since they do not have the money now," Mr Aryee further stated.

Background

 The Ministry of Finance in December 2013 directed all MDAs, including metropolitan, municipal and district assemblies (MMDAs) to use part of their internally-generated funds (IGF) to settle their utility bills for water and electricity. 

  In February 2014, the ministry again wrote to remind them of their additional responsibility of paying the bills. 

“All MDAs and MMDAs are reminded to take immediate steps to settle their indebtedness to the utility providers and ensure that utility bills are settled as they become due. 

“For the avoidance of doubt MDAs and MMDAs that have been authorised to retain portions or all of their IGF may apply part of their IGF to pay utility bills," the letter stated. 

It went further to indicate: “Attention is hereby drawn to the provision in the Guidelines for the preparation of the 2014-2016 Budget paragraph 7.2 which states that sufficient budget allocation should be made for the payment of utilities by MDAs and MMDAs since centralised budget will not be allocated for the payment of these bills."