WASA CEO: No instructions on Cabinet committee's recommendations

ACTING CEO of the Water And Sewerage Authority (WASA) Sherland Sheppard said the authority was never given any instruction by the Ministry of Public Utilities to act on the recommendations of a 2020 Cabinet subcommittee.

Speaking during a Parliament Joint Select Committee (JSC) meeting on the land and physical infrastructure at WASA on Thursday, Sheppard said WASA was not in a position to answer questions related to the subcommittee's report as no official document was presented to the authority nor any instructions given.

In a brief WhatsApp message to Newsday, Minister of Public Utilities Marvin Gonzales said, “That is absolutely correct. The report of the 2020 cabinet subcommittee was laid in parliament and forwarded to another Cabinet subcommittee for consideration and preparation of a transformation plan for WASA. The report was never referred to the executive management of WASA for implementation.”

“It is unfortunate that WASA has said it cannot answer questions (as) it has been over one year since the report was made public,” said Princes Town MP Barry Padarath. “These reports are laid in parliament, so for one to claim ignorance is a sad state of affairs.”

In the JSC meeting, Padarath said the subcommittee report highlighted major financial challenges as a result of arrears and debts owed to the Desalination Company (Desalcott). He said Cabinet documents from 2002 and 2009 show that WASA negotiated for water meant for commercial use at the Point Lisas Industrial Estate, to be taken out of Desalcott at commercial rates and put on the domestic grid.

Shepard said while he was unaware of any negotiations in 2009, in 2002, 24 million gallons of water was used with 19 million gallons going to the industrial grid and five million to the domestic grid.

He said that in 2014, renegotiations led to an increase in production from 24 to 40 million gallons. “I would not want to speculate (about the 2009 document) because I do not have that information at hand.

“I am aware that in 2014 it was increased to 40 million gallons with 25 (million gallons) on the domestic grid and 15 on the industrial grid. That is the information I have.”

WASA's Director of Finance Giselle Spence said the authority has been utilising its revenue to pay off its US$9 million debt to Desalcott. “As we get our revenue and are able to purchase US currency, we will pay Desalcott,” she said.

Shepard also said with even with the downturn of companies in industrial areas in Point Lisas, the demand from other areas still warranted an increase in production as other industries in south western areas have increased. He said the agreement signed in 2014 is a “take or pay” arrangement valid until 2036.

He also said the authority has not identified any redundancies in staff, as Padarath pointed out that as one of the recommendations made by the subcommittee report.

He said, “This management was placed nine months ago to ensure continued operations of WASA. We are not engaged in restructuring. We are not doing any restructuring.”