15 Sep 2016

The Water Utilities Corporation (WUC) needs P10 billion for it to be in a proper liquidity position.

Addressing the Parliamentary Committee on Statutory Bodies and Enterprises in Gaborone on Monday (September 12), WUC chief executive officer, Mr Mmetla Masire, said the corporation inherited infrastructure that was in a bad state from councils and water affairs.

He said part of the P10 billion would go towards restoration of infrastructure and water purification and treatment.

Mr Masire noted that the past year was difficult because it was a drought year and it had a bearing on the corporation’s financial performance.

He said they had failed to generate funds to sustain the corporation hence requested funds from government.

“We are unable to carry out some projects that we wanted to carry out as a corporation hence we are working on a strategy to recover debt because it is too much.” he said

Responding to questions from MPs, he said the corporation had experienced situations where it overcharged consumers due to its system of estimation.

In addition, he said when the overcharges were realised the corporation reversed them.

When asked if cutting water supply in government departments was ideal, Mr Masire said he believed it was the right thing because it prompted government to pay. He said the cutting water only happened in ministry headquarters and it did not affect schools and hospitals.

Mr Masire said WUC was owed a total amount of P211 million by government with BDF owing the highest piece of P68 million.

He told the committee that the waste water facility was in need of major cash injection as it was in a bad state, noting that waste water was costing the utilty more than it should.
 

He told the MPs that the corporation was facing challenges to provide water to far places as it was expensive.

He said it was the responsibility of the Ministry of Lands and Housing to service land as WUC could not go beyond 50 metres of reticulation from the ministry’s serviced lands.

Mr Masire said providing water to farms would be expensive because of steel pipes and diesel costs, however, noted that with a water regulator in place it would be possible to pass the costs to the consumer. ENDS