Latest update April 28th, 2026 12:30 AM
Amicable resolution nears for GWI, City Hall debt problems
A resolution to the City Hall and Guyana Water Incorporated (GWI) mutual indebtness is close since according to senior officials of the entities, investigations to determine the amounts owed by either party have been completed.
The course of action which was engaged about two weeks ago was initialised on the advice of Chairman of the Public Utilities Commission, Justice Prem Persaud.
The two entities had for several months been engaged in a fierce feud which broke out after the municipality accused the water company of inflating its charges.
Officials of the water company, on the other hand, stated that the municipality was assigning inaccurate rates and taxes to the facilities it operates from.
Reports were that both entities owe each other several million dollars and neither has the financial capacity to settle its debt.
The situation had reached alarming levels even though attempts were made by the substantive Minister of Local Government and Regional Development, Mr Kellawan Lall, to intervene in the matter.
The GWI, as a result, decided to disconnect some municipal entities, including the abattoir, for non-payment, even threatening to disconnect any and all facilities that did not pay.
City Hall was able to secure an injunction, which prevented the GWI from further disconnecting water to other municipality facilities; forced the water company to restore connection to all facilities and to make continued discussions between the two entities mandatory.
The matter is slated to come up for hearing on May 27. However, the threat by GWI to continue its disconnection process had aroused the concern of the PUC Chairman, who feared that entities such as the markets and the Municipal Day Care Centres could be severely affected if disconnected. As such he decided to intervene.
The initial intervention forum which was held at the GWI boardroom saw the attendance of the GWI boss, Mr Karan Singh and Deputy Mayor Robert Williams. Since the session proved to be pleasant a decision was made that the two entities re-examine their documentations with a view to ensuring accuracy in charges.
It was decided that the matter would be resolved on the basis of an examination of documentations from both sides which will determine the level of ownership and responsibility, hence bringing clarity in the operations of both entities.
Technical officials from both entities were dispatched into the field.
And according to the Deputy Mayor, the municipal team is currently verifying and documenting its findings from the field work and a report will be ready shortly for perusal by officials from GWI.
Singh on the other hand said that he is awaiting the report on the GWI findings, which he understands should have already been completed. He explained that it is expected that both parties will present their findings to the PUC with the hope that an amicable resolution will result.
According to Justice Persaud, he anticipates that the two parties will be able to find common ground and agree on their respective payments before the matter is brought before the court later this month.
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