WASA bankrupt

Public Utilities Minister Emmanuel George told reporters Thursday the State-owned Water and Sewerage Authority (WASA) is bankrupt.

George said audited financial statements for 2003 to 2005 show that WASA continued to be heavily in debt and suffered from poor liquidity.

"The balance sheet for the ending September 2005 showed a position of insolvency and all of the critical financial indicators of WASA are heading in the wrong direction," the minister said.

He pointed out that the authority’s operating deficit:

• 2003 - $397.2 million
• 2004 - $482.9 million
• 2005 - $391 million

In addition, he said WASA's operating expenditure increased by more than 36 per cent in the three years after 2003.
George also gave the figures for the operating deficit:

• 2003 - $805 million
• 2004 - $920 million
• 2005 - $1.1 billion

The minister said despite all that spending WASA’s service to consumers - particularly a supply of water - continued to deteriorate.

George said the People's partnership has rejected the PNM administration’s plan for the improvement of supply to consumers and cabinet will soon examine a new one-year plan has been proposed.

George said government would have to borrow money in order to reach the goal of improving water supply to consumers for a minimum of two days a week within 12 months.