Over $36M in water arrears

The water rate arrears stand at over $36M and efforts are now being made by the Water Authority of Fiji to recover this huge amount of funds to improve the water infrastructure around the country.

The Public Accounts Committee said after an assessment of the 2006 Auditor General's report on Infrastructure Services that it is disturbing to note the laxity of the Department of Water and Sewerage in the recovery of the arrears, especially those that had been pending for over 5 years which amounted to over $15.4M.

It has also been revealed by the Public Accounts Committee that sometimes water reconnections were made by the department without the payment of the stipulated fee of $10 and the requirement to pay a portion of the outstanding arrears.

It is also noted that there were some consumers whose meters had been disconnected and who are yet to fully pay their arrears, suggesting the possibility that they could be using water by illegal connections.

The Committee has also revealed that Tabua Investment Limited which was the developer of Denarau Island, had arrears of water rates amounting to over $338,000 at the end of 2005.

Previously individual consumers on the island used to be billed but in 2004 the department billed the developer on Denarau Island through a master meter.

The company that was the developer would then be responsible for billing the individual consumers on the island.

However the company disputed the high bill and refused to pay.

Without investigation as recommended by the Auditor General, the committee said the department decided to write off the total amount of $432,000 owed by Tabua Investment Company without the approval of the Ministry of Finance.

Meanwhile Tabua Investment Company is seeking clarification from the Water Authority of Fiji in relation to the revelations made in the Public Accounts Committee report.

Spokesperson for Tabua Investment said they are not aware of the issue and will wait for the Water Authority to get back to them.