The cash-strapped Water and Sewerage Authority (WASA) owes its contractors and suppliers $257 million.
While the authority’s chairman, Romney Thomas, admitted that WASA has not been paying its contractors and suppliers in a timely fashion due to cash flow issues, he said the State-owned company was “querying and questioning” a number of payments, as the company goes through a forensic audit due to irregularities.
“We are not satisfied that some of the payments are legitimately due,” Thomas said yesterday.
Asked about double invoicing by contractors, Thomas said those issues will be addressed in the outcome of the audit.
Thomas said even though WASA receives significant subventions from the Government it has had some challenges in making payments to its contractors and suppliers who are owed “$257 million.”
Thomas described the outstanding debt as most worrying.
“It’s very concerning because we don’t like to be in a position where we owe, bearing in mind that people’s livelihoods are at stake and they have employees.
“We are trying as best we can to meet these payments,” Thomas said.
Though WASA has hundreds of contractors and suppliers, Thomas could not say how many are owed.
Apart from not paying on time, Thomas said WASA “has gotten one or two pre-action protocol letters. I recall two contractors within recent times having us in court for claims...monies.”
Asked if WASA has money to pay its contractors, Thomas said Government will meet all its debts, but the timing of payment may be an issue.
He said WASA tries to pay its older bills first.
Thomas said WASA was in a financial bind because its income was far less than its expenditure.
“One reason for this was our water rates, which have not been raised since 1993. From what I can see, the question of water rates is an issue.”
In a bid to raise cash, Thomas said WASA will soon go on a “collection drive.”
Commercial and residential customers who owe WASA hundreds of thousands of dollars will now be called upon to pay their outstanding bills.
Failure to pay up, Thomas said, could result in disconnection.
“WASA has the power to sell properties for outstanding water rates. This will be a last absolute resort for recalcitrant customers.
“I am very mindful of the economic situation that we are in.
“But we need for people to pay their rates,” Thomas said.
Another area Thomas said WASA will look at was clamping down on illegal connections. —See Page A7