Auditor General flags P105m billing errors at WUC
Pauline Dikuelo | Monday May 4, 2026 06:00
According to Auditor General’s report for the financial year ending 31 March 2023, debtor balances amounting to P105 million were erroneously created within the corporation’s debtors’ book.
These inaccuracies largely stemmed from errors in meter readings, including instances where incorrect readings were processed and released for billing without correction. As a result, 257 individual customers were issued bills exceeding P100,000.
The report further highlights that these erroneous balances were not reversed during the financial year under review, raising concerns about the effectiveness of internal controls and the reliability of WUC’s billing systems.
In addition to meter reading discrepancies, auditors noted that further debtor balances were incorrectly generated due to repeated estimated billing. This occurred in cases where customer premises were not revisited to verify actual water consumption.
'This resulted in accumulated debt balances exceeding P5,000 in some instances. 'In response to the findings, WUC management indicated that the corporation has since implemented end-of-day procedures across key operational areas, including the meter-to-cash process, billing, and credit control.
“These measures are intended to strengthen internal controls and address the weaknesses identified in the audit,' the Auditor General noted.
Earlier this year, WUC revealed that domestic households owe P674 million in outstanding bills, whilst small businesses owe P168 million.
Government entities and councils owed P695 million and P89 million, respectively, bringing the WUC’s total arrears to P1.6 billion.
To ease the burden, WUC extended a debt amnesty programme, which was rolled out in two phases.
Phase 1 of the amnesty saw WUC collect P119 million from households, whilst Phase 2 aimed to deepen collections amongst the most financially strained customers, particularly families and small traders facing prolonged cash-flow pressures.
The utility estimates that arrears are spread across approximately 120,000 household plots, with at least 16,000 households having been urged to come forward during the amnesty window.
Eligible customers could qualify by paying 50% of their outstanding balance upfront, with the remainder settled through a structured payment plan.
The Auditor General further found that the WUC continues to face operational challenges. For the year ended March 31, 2023, the corporation recorded a loss of P357.37 million, an improvement from the restated loss of P373.38 million reported in the previous year. The losses were primarily attributed to increased operating expenses, particularly a notable rise in impairment losses on trade receivables, a term which includes the arrears owed by customers.
Despite these losses, WUC maintained a relatively strong liquidity position. As at March 31, 2023, the corporation reported total current assets of P3.98 billion against total current liabilities of P1.72 billion, resulting in a net current asset position of P2.26 billion.