Public Utilities Minister Robert Le Hunte on Friday said Water and Sewerage Authority (WASA) spent $1.6 billion on a 2014 contract that reaped no benefits to citizens.
Le Hunte, a Government Senator, made the statement during his contribution in the budget debate in the Upper House.
He spoke about WASA’s demands for water outweighing its supply, while its expenses had also outstripped the revenue it receives, stating that the money that people currently owe WASA amounts to $600 to $700 million.
When the People's National Movement came into office in 2015, Le Hunte said the bills was over $1 billion.
He said when the country had money it was not used effectively in managing WASA, as there was wanton waste.
As of now, Le Hunte said WASA has to change 75 kilometres of pipelines, but only had around $10 to $15 million to replace four kilometres of pipeline based on their budget allocation.
Le Hunte said in 2014, over $1.6 billion was spent on an “ill-fated project which resulted in the award of a contract to Super Industrial Services Ltd (SIS).”
To date, Le Hunte said there was nothing to show from this project.
“Could you imagine what would have happened if that money was spent and put into WASA to help fix the infrastructure. Clearly, this is where we are. I am not happy in where WASA is,” Le Hunte said.
In 2015, the National Gas Company (NGC) took legal action against SIS for ceasing work on the Beetham Waste Water Plant.
Back then, then minister of state in the ministry of the attorney general Stuart Young told the Parliament that although SIS had been paid $780 million by NGC, only 40 to 45 per cent of the work had been completed before SIS indicated it could no longer do the work.
The contract, Young stated had been awarded by NGC to SIS for the design and build of the Beetham Water Recycling Plant together with the associated pipelines and water storage facilities.
The purpose of the project was to recycle output water from WASA’s existing wastewater treatment plant to take pipe treated water from Beetham to Point Lisas Industrial Estate.
The water would then be stored at water tank facilities and delivered to WASA.
In July, SIS scored a minor victory in the Privy Council after they dismissed an appeal by NGC which challenged a decision to strike out the gas company’s lawsuit.
Le Hunte also spoke about TSTT, which made $8 million in profit last year because of goodwill.
“But there was a lot of conversation about Massy Communications…a company that TSTT bought. That bargain goodwill after all the conversations about overpricing…let me place on record, the independent accounting firm looked at the price…at what was paid for it, and as a result of that, there was a $41 million of bargain goodwill that we had to write back into profits this year.”
He said TSTT loss $33 million in 2017.
“And when we look at the projections of TSTT going forward…if a company continues to lose money every single year what will happen you will write-off your own equity position…then TSTT would be another company coming to the State looking for some type of subsidy.”
Le Hunte insisted that TSTT cannot continue to run in its present form, stating that he was confident that its board would take the necessary steps to re-energise the company.