GWI achieving financial sustainability is because of prudent management – CEO

Under the new management of Chief Executive Officer (CEO), Shaik Baksh, the Guyana Water Incorporated (GWI) has been able to achieve financial sustainability.  Baksh disclosed that the entity’s prudent financial management and reorganisation have seen massive improvement in its financial standing.

“We have a stable financial position at GWI here and by that, I mean we have eliminated any need for overdraft facilities at the bank. Secondly, the cash flow is we have a fairly good cash flow position to meet all of our commitments, that is employment cost which was skyrocketing,” Baksh stressed. He continued, “But we have been able through the restructuring of GWI as you know, to reduce the employment numbers. This has resulted in an annual savings of about $240M.”

The CEO revealed that in 2021, over 100 employees were made redundant from the utility company as it was found to be overstaffed. Baksh said that at the time, GWI’s staff complement was about 1,320 employees.   Baksh explained that the critical technical employees were hired to boost the company’s operations to fill the gap caused by resignations or retirement, during that time. He noted that despite this, the agency did not forsake its employees’ welfare, be it physical comfort or protective gear.

As such, he said that staff buildings were constructed in Regions Two, Five and Nine, as well as on the East Bank Demerara. CEO Baksh pointed out that the agency’s productivity index has significantly improved in keeping with its promise to provide efficient service countrywide. However, it has opened opportunities for more work to be undertaken.

“Importantly, payment to suppliers, which was about $800 million and prior to September 2020, has now gone down to about $50 million owing to suppliers…this is a great achievement we feel. That’s what we call financial stability and sustainability,” the CEO declared. Baksh revealed that since returning to his position in 2020, he has addressed the mismanagement of GWI’s finances by the previous administration. This, he said led to a forensic audit being undertaken to ascertain the amount of funds expended during their tenure.

“Under the previous administration as I reported before, there were millions and billions of dollars spent on the least thing. We have all that recorded and so we have cut out all of those things,” he said. The CEO added that the PPP Government also took the responsibility of paying off the water company’s Guyana Power and Light (GPL) outstanding account of $8B.