22 Jan 2018

Water Utilities Corporation (WUC) has stepped up its debt collection efforts in an endeavor to mitigate its state of financial risk.

The corporation’s annual report 2016/17 states that WUC continues to engage with various government departments through the Ministry of Land Management Water and Sanitation Services since the bulk of the debt close to 40 per cent is owed by government departments. 

The situation puts the corporation in a compromised liquidity position with a deficit budget that hampers smooth running of the corporation according to the report.

The financial position of the corporation adversely affects service delivery, more especially implementation of water supply infrastructure projects.The report states that infrastructure in villages previously run by local authorities is inadequate and in a state of disrepair

 “This position is attributable to among other things non-cost reflective tariff, high customer debt and delay by government funded projects which compels the corporation to utilize its own resources. In this reporting period, the corporation has not received any cash injections from the government,” states the report.

Therefore WUC has introduced various initiatives such as self-service platforms accessible on the website and cellphones to make it easier for customers to pay their water bills.

The report further states that the corporation continues to engage government on project funding as well as exploring alternative sources of funding for purposes of implementing water supply and waste water projects.

The reports states that cost containment measures have also been put in place to reduce operational costs. ENDS