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      Botswana’s women boxing on the rise 

      Boxers Finally Receive their Prize Money from 2022 African Championships

      Darts Expects Only P50K from BNSC for 2023/24

      Darts Expects Only P50K from BNSC for 2023/24

      Botswana athletes to train in USA

      Botswana athletes to train in USA

      Debswana’s BAA Sponsorship Plays Critical Role in Developing BW Athletics – Theetso

      Debswana’s BAA Sponsorship Plays Critical Role in Developing BW Athletics – Theetso

      Boxers yet to Receive Prizes from 2022 African Boxing Championships 

      Boxers yet to Receive Prizes from 2022 African Boxing Championships 

      April will see 2nd Instalment of Summer Kids Marathon

      April will see 2nd Instalment of Summer Kids Marathon

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      Crippling P1bn Debt Owed to Water Utilities

      mm by Staff Writer
      March 13, 2023
      in News
      Reading Time: 2 mins read
      0
      WUC to pass cost of collecting arrears to customers

      GABORONE 14 August 2019, Minister of Land Management, Water & Sanitation Services Kefentse Mzwinila briefs the media on 14 August 2019 on the outcome of the Botswana Land Symposium. Mzwinila said through the recently approved Land Policy we have decided to liberalise the use of land. Water Utilities Cooperation CEO Gaselemogwe Senai commenting during the press briefing. (Pic:MONIRUL BHUIYAN/PRESS PHOTO)

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      • WUC struggling to recover the money since 2020
      • Mzwinila worried WUC could go bankrupt
      • Water disconnection strategy is bearing little fruit

      The Minister of Lands and Water Affairs Kefentse Mzwinila is worried that the over P1 billion owed to Water Utilities Corporation (WUC) may put the prastatal under financial stress.

      WUC – which provides water and wastewater management services to households, public instaltions and businesses across Botswana – is struggling to recover the debt from its customers. Addressing the media on developments in land and water-sector issues in Gaborone recently , Minister Mzwinila said WUC debt is worrying. “This is lot of money,” he said. “The debt has a negative impact on operations of WUC.” Mzwinila disclosed that WUC can barely meet its operational costs due to its financial constraints emanating from the huge debt and emphasised that the government cannot provide water for free nevertheless.

      “Water sector is very expensive in nature,” he said. “Connection and distribution come with high costs to the government, given that we have to construct water connection infrastructure which is expensive.” Also speaking at the press briefing, the CEO of WUC, Gaselemogwe Senai, agreed with the minister that the parastatal in under serious financial stress because of the enormous debt.

      Senai explained that as part of recovering the debt, WUC disconnected water to domestic households, businesses and government departments affected.

      He disclosed that government departments, which includes ministries and parastatals, owe WUC P100 million. WUC accrued the debt during the peak of COVID-19 after it was instructed not disconnect water to households and businesses in the course of a State of Emergency (SOE) in force to tackle the pandemic. Senai said although some money is being recovered, progress is slow and low. He appealed to defaulters to pay their water bills to enable WUC to carry out its mandate.

      Losses

      In 2021, the parastatal realised a significant decline in its financial performance for the year ended March 2021 with its losses amounting to P166 million from P49.9 million in March 2020. The losses were also attributed to arrears in water bills during COVID-19. According to WUC, the losses that went up by 32 percent were underpinned by the effects of COVID-19, in particular eroded household incomes that affected in ability to pay water bills.

      In 2021, WUC revenue from contracts with customers dropped to P1.811 billion from P1.825 billion.  WUC’s total expenses also rose from P1.988 billion to P2.307 billion, resulting in an operating loss before tariff subsidies and grants of P465.9 million, significantly up from P138.8 million recorded in the previous year that ended 31st March 2020. WUC is also expected to post more losses for the 2022/23 financial year due due mainly to its poor debt recovery.

      Tags: COVID-19Kefentse MzwinilaMinister of Lands and Water AffairsWater Utilities Corporation (WUC)

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