Mmegi

WUC blames P1.5bn loss on low tariffs

Under pressure: The Corporation’s finances are strained
Under pressure: The Corporation’s finances are strained

Water Utilities Corporation has lost P1.5 billion over the last four financial years, weighed down by increasing operational expenses, deteriorating infrastructure and non-cost reflecting tariffs, management has revealed.

The balance sheet for WUC shows that the corporation is sitting on over P19 billion in liabilities, the bulk of these attributable to a listed bond as well as bad credit that has been sitting on the parastatal’s books. Government alone owes the corporation over P800 million.

Appearing before Parliament’s Committee on Statutory Bodies and parastatals, WUC CEO, Gaselemogwe Senai, revealed that the corporation was last profitable in 2018. Losses since then have primarily been driven by below-cost tariffs that make it difficult for cost recovery.

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