MDAs` Doom For National Water: NWSC Struggles with UGX355 Billion in Unpaid Water Bills as Government Agencies Debts Soar Beyond

KAMPALA, Uganda: The National Water and Sewerage Corporation (NWSC) is facing a severe financial strain due to an overwhelming Shs355 billion in unpaid water bills. Among the largest defaulters are government Ministries, Departments, and Agencies (MDAs), which collectively owe the corporation a staggering UGX111.2Bn. This prolonged financial burden threatens to disrupt essential water services, potentially leading to dry taps at various government institutions.

According to the latest report by Auditor General Edward Akol, government entities have failed to clear their arrears for more than two years, posing a significant challenge to the state-run utility provider. The increasing debt has strained NWSC’s ability to maintain infrastructure, supply clean water, and ensure proper sewerage services for millions of Ugandans.

Government’s Unfulfilled Commitments

Despite acknowledging the gravity of the situation, the Ministry of Finance, under the stewardship of Permanent Secretary and Secretary to the Treasury Ramadhan Ggoobi, has yet to offer a concrete solution. While there have been pledges to verify the outstanding bills and clear them in a phased manner, the implementation remains slow and unreliable.

In a proposed repayment plan, the government committed to settling Shs43.1 billion, beginning with Shs12.8 billion in the 2023/24 financial year. The remaining balance was to be cleared over the next four years. However, these commitments have not materialized as expected, leaving NWSC in a precarious financial situation.

Risk of Service Disruptions

The continued failure to honor these obligations risks serious repercussions. If the outstanding debts are not settled soon, NWSC may be forced to cut water supply to government institutions. Such disruptions could affect hospitals, schools, and other essential services that depend on a steady water supply for daily operations.

Additionally, the financial distress hampers NWSC’s ability to expand access to clean water and sewerage services across the country. At a time when Uganda is striving to improve public health and sanitation, these unpaid bills threaten to roll back progress in ensuring safe and sustainable water access for all citizens.

Urgent Call for Government Intervention

Without swift government intervention, NWSC’s operational challenges may deepen, jeopardizing not only its ability to serve current customers but also its future expansion plans. Public confidence in the corporation’s efficiency is at risk, as continued financial instability could lead to service delays, infrastructure deterioration, and an overall decline in water quality.

The government must take immediate steps to fulfill its financial commitments and prevent a crisis that could have widespread social and economic consequences. Ensuring timely payments will not only sustain NWSC’s operations but also secure the provision of a critical resource that millions of Ugandans rely on daily.

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Daniels N Tatya: Mr. Daniels N. Tatya is an affluent Sports Writer, Commentator and Editor. His over 15 years of covering almost major sporting events makes him a revered and an authority on investigative Sports journalism in Uganda. He can also be reached via [email protected] +256(0)758268315