Monrovia-Liberia: The Liberia Water and Sewer Corporation (LWSC) has unveiled a financial quagmire, with liabilities soaring to over $7 million USD at the entity.
The gravity of the situation was disclosed by LWSC Managing Director, Mohammad Ali, shedding light on the dire state of the corporation’s fiscal affairs.
Speaking to reporters, Ali attributed the staggering $7 million liability to a multitude of factors, including outstanding monthly salary arrears, unpaid bills to local vendors, and delinquent social security withholding.
The breakdown of the liabilities paints a grim picture: staff arrears spanning 7-9 months and retirees’ pension benefits amounting to $2 million, while local vendor debts accrued to $1 million.
Additionally, the entity grapples with a social security withholding contribution exceeding $1 million.
Ali did not mince words in addressing the root causes of LWSC’s financial woes, citing rampant irregularities and governance lapses that have plagued the institution.
He lamented the culture of mismanagement and inefficiency that had stymied the corporation’s operations, impeding its ability to fulfill its mandate effectively.
During a press conference, MD Mohammad Ali shed light on the lax financial oversight that prevailed prior to his tenure.
He revealed that LWSC operated as an open space for money disbursement, indicating a glaring lack of accountability and control mechanisms.
One of the most alarming revelations pertained to the issue of overstaffing within the corporation. Ali pointed out a dramatic surge in the workforce, with staff numbers skyrocketing from 375 to 669 employees within the span of just nine months, from April 2023 to December 2023.
He expressed over employment at the hiring spree, disclosing that a staggering 124 individuals were brought on board in a single month, exacerbating the financial strain on the institution.
Prior to his assumption of office, Ali said he uncovered glaring disparities between employee wages and revenue generation.
He revealed that the monthly wage bill for 669 employees stood at a staggering $375,000 USD, while the corporation’s monthly revenue languished at a mere $100,000 USD.
This glaring imbalance underscored the urgent need for structural reforms and fiscal discipline within LWSC. Further exacerbating the situation, Ali disclosed the qualifications of certain employees.
He revealed that 94 individuals within the Monitoring and Evaluation Department lacked the requisite qualifications, with some possessing only a high school education.
This revelation underscored the need for rigorous recruitment practices and merit-based appointments to ensure the efficient functioning of the institution.
As LWSC grapples with its financial predicament, Mohammad Ali vowed to institute sweeping reforms aimed at restoring fiscal stability and accountability within the corporation.With a renewed focus on transparency, efficiency, and prudent financial management, Ali is determined to steer LWSC away from the brink of financial collapse and towards a path of sustainable growth and development.
However, the road ahead remains fraught with challenges, requiring concerted efforts from all stakeholders to navigate the corporation towards a brighter future.
