Latest update November 21st, 2024 1:00 AM
Oct 09, 2018 News
The Mayor and City Council owes $148M to waste disposal companies, Puran Brothers Inc. and Cevon’s Waste Management. The money represents outstanding arrears. The two companies are considering strike action if measures are not taken to have these payments completed.
According to Kaleshwar Puran, General Manager of Puran Brothers Inc., City Hall owes his company $73M in arrears for services rendered from June 2018 to date.
Puran said that the City’s business accounts for 75 percent to 80 percent of their revenue, and that the current lack of payments puts a strain on their business. Mr. Puran said that his company has been providing services to the city, nevertheless, because Puran Brothers Inc. has a passion for Waste Disposal Services.
Morse Archer, Chief Executive Officer of Cevon’s Waste Management, told Kaieteur News that the City owes the company $75M for services rendered from May 2018 to date. The operational cost, according to Archer, is about $15M per month.
Archer said that there has been no positive feedback from City Hall concerning this matter, even though efforts have been made to contact the Council about these payments.
The duo also indicated that rising fuel prices make it increasingly difficult to maintain the level of service needed to care for the city without the requisite compensation. Asked whether they intend to take strike action, they indicated that that is something which is currently being considered.
The companies, just last week, wrote a joint letter to Minister of Communities, Ronald Bulkan, requesting a meeting to seek swift resolution for this issue. They intend to take action if the Council and the Minister do not cooperate, as early as next week.
Puran Brothers and Cevon’s Waste Management have discontinued services to Georgetown before, when the Mayor and City Council racked up a total of $300M in outstanding payments to them. At the time, M&CC had released a statement that the work of these waste disposal companies accounts for almost 10% of the Council’s budget.
Together, the two companies provide a plethora of services to Georgetown, including drainage, enforcement of compliance with the city’s public health by-laws, maintenance of cemeteries, markets, roads, pumps and allied facilities.
The Mayor and City Council is currently under heavy scrutiny, both by the general public and by the Commission of Inquiry into their affairs, especially as it relates to how money is being spent. Just last Friday, the Deputy Managing Director of Insurance Brokers Limited (IBGL), Ewart Adams, testified that City Hall owes a total of 24M in arrears to multiple insurance companies. On the same day, Internal Auditor, Omodele Umoja-Newton, told Justice Kennard at the CoI that City Hall has not been audited in 3 years.
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