WUC overbills customers by P189 million
INNOCENT SELATLHWA | Thursday June 12, 2025 10:17
According to the Auditor General's report for the financial year ending March 2022, debtors worth P187 million were created in error through overclocking meter readings, which were released for billing without being corrected, resulting in individuals having large bills over P100,000.00, which were not reversed during the year.
Auditors also noted cases of repeated estimation where customer plots had not been visited for subsequent verification of the consumption, resulting in debt over P5,000.00.
According to the report, WUC management stated that they have implemented day-end procedures that cover the meter-to-cash process, billing, and credit control.
WUC has since started installing smart water meters in Gaborone. These advanced devices are expected to offer customers better control over their water usage and spending, as well as assist WUC in monitoring consumption patterns more efficiently.
Speaking at a consultative meeting with stakeholders last year, Mothusi Madi, the lead engineer of the project, expressed confidence in the rollout. He noted that the smart meters would help address issues related to water wastage and unpaid bills, which have been a challenge under the conventional metering system. “The introduction of smart prepaid meters marks a significant step forward in how we manage water resources in Gaborone.
'These meters will empower consumers by providing real-time data on their water usage, allowing them to make informed decisions and avoid unexpectedly high bills,” Madi explained.
The smart meters operate on a prepaid system, similar to the ones used for electricity, where users can purchase water credits in advance. This setup is designed to encourage responsible water usage and reduce the financial strain on households by preventing the accumulation of large, unforeseen water bills.
This development is part of WUC’s broader strategy to leverage technology in improving service delivery and resource management in response to the growing demand for water in Botswana’s urban areas.
Meanwhile, the auditors also noted incorrect classification of statutory and other liabilities. They state that the auditors' review of Botswana Government debtors' accounts revealed that transactions captured were between the corporation and various government departments.
'They further identified transactions such as CITF levy, garnishee orders, death and GLA claim, stale cheques, sitting allowances, and others. This was indicative of a lack of reconciliation and review of key accounts,' states the report.
In response, WUC management stated that a letter had been written to the Ministry of Justice to provide reference and banking details to enable payment of the CITF levy. They stated that other transactions in the vendor account would be investigated.
Meanwhile, the auditors noted that WUC had failed to comply with the debt coverage ratio of the European Investment Bank (EIB) of 1.5:1. The corporation had a debt coverage ratio of -7.1:1 as calculated in line with the provisions of the EIB loan agreement, and was lower than the optimum ratio required. This was due to the fact that the corporation had made a loss in the year.
In response, management stated that EIB was informed of the noncompliance. They stated that the last payment would be made in March 2023.
In the year under review, the corporation recorded a loss of P392.36 million, compared to a loss of P174.49 million in the previous year.
Revenue increased by 14% from P1.81 billion in the previous year to P2.34 billion in the year under review.
The auditors also identified a lack of appropriate performance and timely review of supplier reconciliations.
They noted that there were instances where payments were made to suppliers before year-end, but the supplier accounts were not updated to reflect this, leading to non-genuine reconciling items. Further, they noted some reconciling items that were long outstanding, dating back to 2018 from different suppliers. The above was cited as a result of a lack of proper performance and timely review of supplier reconciliations.
In response, management acknowledged the finding and stated that the process of addressing long-standing items in supplier accounts was still in process.