WUC expects P33m hit

Water Utilities Corporation (WUC) expects COVID-19 to impact its earnings by at least P33 million, adding to the Corporation’s perennial cash flow troubles. The WUC’s latest financials, reflecting its performance for the year ended March 2020, show that it posted after tax profits of P75.6 million, helped by a P147.4 million revenue grant from government. According to its financials made available recently, the Corporation was headed for a P106 million operating loss, before the government support. In the year to March 2019, the WUC posted a P209 million operating profit. As at March 2020, the WUC was owed P801.2 million by various customers, with households accounting for P460 million, government and council P233 million and the balance owed by businesses. The Corporation said it expected an impairment of P33 million due to the impact of COVID-19. Government stopped the WUC from disconnecting defaulting consumers during the State of Public Emergency as a way of helping Batswana cope with the pandemic. The WUC has struggled financially for years since 2009 when the Water Sector Reforms Programme (WSRP) began, requiring take over the supply of water to all urban centres and villages. Prior to the programme, the Corporation’s mandate was limited to urban centres and it regularly posted profits/surpluses, indicating that it was able to meet its operational needs from its own revenues.