Garbage contractors ask Gov’t to intervene as debt piles up

Nov 25, 2018 News

Expressing that it had no confidence in the administration of the Georgetown Mayor and City Council, (M&CC), City garbage contractors Puran Brothers and Cevon’s Waste Management Disposal have issued a combined call for the government’s hand in helping to iron out the issues of payment with the council.
In a statement to the press, the companies called on the Government to intervene in support of the process, towards ensuring efficient garbage disposal. The contractors recently pulled their service from the Council.
In the release, the companies explained that the decision was made only after futile attempts were made to engage the municipality on the issue of settling these outstanding amounts.

“In the process, we found City Hall to be decidedly lacking in a sense of urgency.”
“It is as if the administration of City Hall has concluded that it is entirely reasonable to expect us to continue to provide service in the face of its astounding delinquency,” the company stated.
“We wish both the Government of Guyana and the citizens to be assured that a great deal of human and physical resources are invested in discharging our responsibility to the capital,” the company said.
“In that context, we submit that it is both morally and legally wrong to expect that we can continue, over a protracted period of time, to discharge these services without compensation.”
The garbage contractors are owed a collective $150M in arrears from the council for rendering waste disposal services on behalf of the City.
The two companies also responded to reports that City Hall would contract smaller companies to replace them. They warned of the risk to the entire city should City Hall engage persons with less capacity to collect garbage.
“In the past, City Hall’s resort to less than professional replacement service providers have led to unwholesome consequences, not least, movement through the streets of the capital of vehicles unsuited to the task making deposits of garbage and putrid liquid on streets in the capital to say nothing to large numbers of disgruntled citizens,” the companies noted.
Last week, the contractors, Puran Brothers Disposal Services and Cevons Waste Management Inc., wrote to the M&CC threatening to pull their services, for not being adequately remunerated for their work.
The companies disclosed that they have not been paid since June, despite promises by the Council.
Both companies said their current financial positions do not permit them to continue working without pay.
Alluding to the letter sent to the office of the Council, Manager of Puran Brothers Waste Disposal, Kalesh Puran, noted that the company has been working with the Council for the last six months without pay.
The Manager said that the municipality was given an ultimatum to pay or the company will be pulling its services by November 26.
“It’s not that we want to, but the company is constrained financially,” he added.
Similar correspondence was sent to the Council by Director at Cevons, Morse Archer.
In his letter, Archer called on the administration of the Council to make substantial payment by November 26, before the company can consider continuing its work.
The M&CC owes the companies a collective $148M for waste disposal services.
For Puran Brothers Inc., City Hall owes $73M in arrears for services rendered from June 2018 to date. On the other hand, the city owes Cevon‘s Waste Management $75M for services rendered from May 2018 to date.
The operational cost for both companies is about $15M per month.

Representatives of both companies have 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.
The two companies have been considering strike action since last month.

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