Sunday, November 05, 2006

World Bank declares GUMA bankrupt

A World Bank report on Guma Valley Water Company says GUMA is now essentially bankrupt and a failure of providing services to consumers is almost becoming a real possibility.
The major factor responsible for the company’s very poor collection performance is that only about 10% of the water produced by GUMA is actually paid for. Illegal connections are widespread, perhaps exceeding the number of legal connections.
Besides, the company’s ability to collect tariffs from its many customers has been very poor. GVWC is yet to demonstrate that it is capable of making meaningful progress toward addressing these serious deficiencies.
With this report, employees of the embattled parastatal are now calling for a commission of enquiry to be set up to investigate the management.
Speaking to a member of the Guma Workers Union and other aggrieved workers, they told this press that Guma gives out nineteen million gallons of water per day at a cost price of fifty cent per gallon. So if Guma is giving out so much the management needs to give account for what is being collected. Nineteen gallons at fifty cent per gallon, if collected could sum up to 950 millions Leones per day.
Workers also maintain that PVC rubber pipes are not very good for the operation of Guma.
The used rubber pipes are useless. They also accused the General Manager, Mr. Daniel Thompson of not working in the interest of the company but himself and the board. The company was supposed to have employed a commercial manager who will be in charge of collecting all dues owed to the company but up till now that has not been done.