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NAWEC's problem

Jan 25, 2011, 10:30 AM

The revelation that the National Water and Electricity Company (NAWEC) is owed a whopping sum of over one hundred and fifty million dalasis is really disturbing.

Considering the role and responsibility of NAWEC, it is our fervent belief that the company cannot perform its responsibilities with this debt being owed to it by other institutions.

It was not known for a very long time what was actually the problem confronting NAWEC. Many people blame the company without knowing the actual reasons for its staggering performance with respect to meeting the nation's need of electricity and water supply.

But it seems this will change, somehow. According to the company's 2008 annual report and financial statement submitted to the Public Accounts/Public Enterprises Committees of the National Assembly, there still remains D150 million owed to the company by other institutions.

The report has revealed that the amount owed by the local area councils and some Government institutions account for more than 70% of the total arrears. The report also gave an insight as to why NAWEC faces difficulties in delivering what is expected of them. It identified the high cost of fuel prices as the reason of most of the problems facing the company.

"Fuel prices in 2008 have adversely impacted on the overall financial performance of the company and on its liquidity in particular. For instance, in 2007, NAWEC spent D241 million and D639 million on fuel and lubricants and energy purchases respectively. However, in 2008, D480 million was spent on fuel and lubricants and D825 million on energy purchases, thus representing an increase of 98% and 29% respectively," the report said.

Seriously, service delivery at any level is a very demanding business. It requires enough resources, integrity and energy. Anyone who wants quality service delivery especially from NAWEC must be willing to pay their debts at the end of each month when NAWEC issues its bills. To complain for poor quality service delivery when one does not pay his or her debts at all is even a disgrace.

We should learn to be paying our debts and on time. With this, NAWEC can be in a position to improve on its service delivery.

"Some debts are fun when you are acquiring them, but none are fun when you set about retiring them."

Ogden Nash