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GPL issues ultimatum to City Council over $611M debt

Nov 13, 2009 News

– pay or face disconnection today

The Guyana Power and Light Inc (GPL) has given the Mayor and City Councillors of Georgetown (M&CC) up to today to make payment arrangements for almost $611M owed in electricity costs or face disconnections and legal proceedings.
According to GPL, the massive amount is what M&CC owes as at August 31, 2009. The last amount paid was $7M on October 17, 2008.
Failure to make the arrangements will result in the immediate disconnection of electricity supplies at all M&CC locations “without further notice” with the institution of legal proceedings, GPL wrote to City Hall in a letter dated November 11, 2009.
Well placed sources yesterday said the City Hall, Abattoir office and Stabroek and Bourda Markets will be targeted if no arrangements are made for payments.
Kaieteur News was told that GPL was not contemplating disconnecting the power to the city’s street lights for obvious security reasons.
GPL, in a letter dated October 21, and addressed to the Town Clerk (Ag), said that “this extreme level of tardiness in meeting your obligations to GPL has adverse impact on our operations. Your level of indebtedness is unprecedented and the fact that absolutely no payment has been made for over two years indicated that there is no effort to pay GPL and/or reduce the scale of the problem.”
GPL said that repeated efforts in the past to exchange cheques to clear outstanding rates and taxes have been frustrated by City Hall.
“We urge again that this be done. If arrangements are not made to settle a reasonable portion of the outstanding arrears within fourteen (14) working days from the date of this letter, we will have no alternative but to disconnect your electricity supply.”
In a follow-up letter dated November 11, GPL said that no payments had been received despite the previous letter.
“You are hereby informed that if a payment arrangement to settle the indebtedness is not entered into on or before 13th November, 2009 (today), the GPL will disconnect the electricity supply at all of the Georgetown Mayor and City Council’s locations without further notice and institute legal proceedings.”
M&CC has been facing a serious financial situation for some time now with contractors unpaid and government being forced to step in time and again to advance its share of taxes to the council.

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