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Lahai Kanu, the Director of Administration and Finance at Guma Valley Water Company, has vehemently refuted claims of the company owing the government 100 million Leones in tax debt.
This statement came in response to a report published by Mano Reporter.com on Wednesday, November 8th, 2023, which erroneously suggested the company’s substantial debt to the government.
Setting the record straight, Kanu clarified, “Our outstanding tax liability, inherited by the present management, amounts to 15.6 million Leones. Conversely, the Government owes Guma Valley Water Company 29 million Leones for services rendered. This is why we have been advocating for a debt swap with the Ministry of Finance.”
Highlighting the company’s financial autonomy, Kanu emphasized that Guma Valley Water Company operates independently, covering its day-to-day expenses and maintenance costs from revenue generated through water rates and other charges.
Despite its self-sufficiency, Kanu acknowledged the government’s support, particularly in facilitating pro-poor services in low-income communities. Additionally, he noted that governmental assistance extends through Government Counterpart Contributions to donor projects and partial tax exemptions for water treatment chemicals, augmenting the company’s initiatives.
Kanu’s statement sheds light on the intricate financial dynamics between the government and Guma Valley Water Company. The proposed debt swap seeks to reconcile outstanding payments between the two entities, aligning their financial obligations more accurately.
The clarification from the Director of Administration and Finance at Guma Valley Water Company indicates the need for precision in reporting and understanding the intricate financial ecosystem governing the water supply sector. It emphasizes the critical role of transparent communication in accurately portraying the financial landscape of public utilities.
As discussions continue between Guma Valley Water Company and the Ministry of Finance, the focus remains on fostering a clearer financial framework, ensuring effective operations and service provisions for the benefit of the community while resolving outstanding financial commitments.
