The Chief Executive Officer (CEO) of the Guyana Water Incorporated (GWI), Shaik Baksh says that between 2015 and 2020, the company engaged in ‘reckless expenditure’ amounting to millions of dollars. His revelation comes at a time when the company is moving to terminate the services of over 170 employees.
Just yesterday, the former CEO Dr. Van West-Charles boasted of his management of the company. But Baksh, during a press conference today, snubbed his predecessor, saying that the GWI was on a verge of going belly-up when he took over in August 2020.
“In 2020 before August, the company was on the verge of a collapse, if we did not take certain measures. And the main fact that the company had to go and have an overdraft facility totaling $270M, which was largely spent to pay the salary of staff, attests to what was happening,” the CEO said.
He added that some $800M was owed to suppliers of goods and services, and measures had to be taken to settle these arrears.
“When I took office, I was bombarded on a daily basis; people crying out for payments. It affected our image; it affected our creditworthiness as a utility. We had to move quickly to resolve this to the extent that it has been reduced significantly. It is just over $200M now that we owe to suppliers out there. And we’re at a better standard; we’re getting credit,” he said.
Baksh lamented that despite the company being on shaky financial ground, it continued to engage in excessiveness.
“In 2019, $55M was spent for Old Year’s night party, anniversary and staff Christmas party – $55M! We have all the invoices, all the vouchers, everything which can be subject to any audit… $55M when you’re in a sad state of affairs as a company. You can’t maintain your treatment plants…These were things that were happening in this company. And don’t talk about the overseas travel. In 2018, $26.8M in overseas travel, and in 2019, $26M in overseas travel. And as for meals, oh my, in 2019 alone, $50M was paid out for meals. Compare that to 10 months of new management – from August 2020 to May 2021 – $16.7M,” the CEO said.
Baksh said that the Auditor General’s reports for the years 2013, 2014, and 2015 showed that there was ‘prudent’ financial management by the company, however, reports for years between 2018 and 2020 are lagging. He added that the recently concluded 2017 audit report cites ‘gross mismanagement.
