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.

Editor's Comment
Tana project a welcome development

Whilst the project received mixed reactions from members of the public, the project is indeed a welcome development, which needs to be implemented as soon as possible. Many shared their opinion, with those against the project decrying that if implemented, it will kill the already struggling public transport industry.Many countries around the world have state-run public transport, and those who have travelled to such countries will give testimony...

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