Guyana Water Inc (GWI), which is owed an estimated three billion dollars (One Guyana dollar=US$0.004 cents) by its customers, said Friday that it has been able to reduce expenditure significantly following a restructuring exercise that included the dismissal of 300 employees .
GWI chief executive officer, Shaik Baksh, told a news conference that the company undertook a review of the staffing structure and the organizational structure, which was completed within a couple of months and was implemented.
“In August 2020, when the new management took over, the staffing complement was 1320 employees and through a process which was consultative with all levels of employees at GWI, including the top managers, and in discussions, we were able to identify the new organizational structure, the organizational chart for each department and unit, and over the last 18 months, we were able to bring down the employment numbers to just under 1000. To be precise, 998 as of today’s date,” he told reporters.
Baksh said that plan has resulted in the company now saving millions of dollars in employment costs monthly and now has “a fairly good cash flow to meet all of our commitment.
“…that employment cost which was skyrocketing…we have been able through the restructuring of GWI to reduce employment numbers and this has resulted in an annual saving of GUY$240 million in employment costs and at the same time our productivity ratio has gone up”, Baksh told reporters.
He said the company has been able to significantly reduce its debt and employees are now being paid their full benefits. It is also examining other areas to cut back on additional costs while trying to improve its productivity and performance.
The water company has also brought down the GUY$800 million it had owed to suppliers in September 2020 to just GUY$50 million.
“That’s what you call financial stability and sustainability… our inventory has improved with more spares, pumps, motors as well as drilling materials which we have on hand,” Baksh said, adding that as part of this process, the company has completed the 2017 and 2018 audit reports with work ongoing on the 2019 report and plans to complete the 2020 – 2021 financial statements by the end of this year.
“So when the time comes for these years we will be up to date with financial reporting,” he said, acknowledging that on the revenue collection front, customers continue to owe the company at least three billion dollars.
The company Friday launched a program allowing customers to pay 50 per cent of their outstanding debt and get free reconnection of service that is normally pegged at GUY $7,500.