WITH THE Government besieged by economic and financial problems, the belt-tightening in the public sector has already begun in earnest.
Yesterday, Minister of Water and Housing, Donald Buchanan, announced sweeping overhauls of three major agencies that fall under the portfolio of his Ministry, in a bid to reduce waste and corruption.
The announcements were made during a press conference at the Ministry's New Kingston offices. The agencies affected are the National Water Commission (NWC), the National Housing Development Corporation (NHDC) and the Rapid Response Programme, which distributes water to communities in need.
The staff complement of the NWC will be reduced by 500 workers in keeping with recommendations made by a KPMG Peat Marwick audit.
According to the Minister, 170 persons, 30 voluntarily, had already been 'separated from the organisation' which was once plagued by employee and electricity costs that consumed 70 per cent of revenue.
Based on the September figures, the cuts will result in $300 million in savings this year alone. The savings will, in the future, contribute to the $500 million overhaul of pipes and other infrastructure to "bring the monster of unaccounted-for-water down to acceptable levels."
The Minister also announced that the agency would be stepping up its collection drive.
"We will be going after those who are not paying their water, the affluent, big business and the red (low income) communities. We will be going for everybody across the board," he promised.
On the issue of water charges, the Minister said the tariff increase which the NWC had applied for through the Office of Utilities Regulation (OUR) is critical to the turn around of the company and is part and parcel of the overall restructuring programme.
The 42 per cent increase, according to NWC figures, will translate into an average increase in the monthly bill of less than $300 for 90 per cent of its paying customers.
The figures show that 26 per cent of domestic consumers will pay between $90 and $100 more, 27 per cent will pay $178 more per month, and 25 per cent will pay as much as $230 more per month.
The NWC's five former regions have been arranged into two divisions with eight areas, in place of the former 11 districts, where the new focus will be on critical areas of operation, including customer relations and unaccounted for water reduction.
Meanwhile, the NHDC, which has been buffeted by claims of corruption in relation to Operation PRIDE in early 2002, has a new management team structure devised and approved by the Board.
All managers, except the head of Finance and Administration, Winston Barnett, have already taken up their posts.
PAST BEHIND US
"We have put the past behind us and are now moving forward with the people's agenda to provide affordable housing solutions to the nation," Minister Buchanan said.
An audit of the Rapid Response Programme had turned up two incidences of suspected fraud amounting to over $3 million. The two managers implicated were fired, and the matter is before the courts.
"This has pushed us to accelerate the implementation of the audit results," Minister Buchanan said.
A new management team, to start work November 1, was recruited consistent with the new structure recommended by KPMG Peat Marwick Audit. The team will implement new strategies such as a shift system to eliminate overtime payments, and seek more attractive rates to procure fuel.
