By Emma Black

The Guma Valley Water Company (GVWC) has strongly denied recent allegations of financial mismanagement, dismissing claims of an NLe 258 million shortfall as false and misleading. The company’s defense follows accusations aired on Radio Democracy 98.1 FM’s Daddy Wakabot program and published in Hope Times Newspaper between April 16 and 17, 2025.

In a detailed statement, GVWC clarified that the disputed figure represents outstanding debts owed to the company, not missing or misappropriated funds, this is a debt recovery issue, not corruption, GVWC management said, explaining that the NLe 258 million reflects accounts receivable. Of that amount, NLe 32.6 million is owed by various Ministries, Departments, and Agencies (MDAs), with the remainder due from private and institutional customers. These debts, they said, have accumulated over several years.

The company further pointed to its 2023 draft financial statements, which were submitted to the Sierra Leone Audit Service and reviewed as part of standard oversight processes, our books are open and transparent, GVWC emphasized, stating that their finances are consistently monitored by relevant government bodies.

GVWC did acknowledge certain tax obligations, including NLe 1.6 million in Withholding Tax and NLe 18.8 million in Pay-As-You-Earn (PAYE) deductions, as disclosed in their recent audits. However, they attributed delays in payment to significant financial strain.

Key contributors to these challenges include stagnant water tariffs which have remained unchanged since 2021 despite a 12% inflation rate, according to 2024 data from the Bank of Sierra Leone. The company also cited water theft as a major issue, with an estimated 30% of its supply lost to illegal connections and leaks, based on its 2024 audit findings.

Despite these obstacles, GVWC has committed to paying NLe 50,000 monthly toward its tax arrears under a repayment plan endorsed by the Parliamentary Public Accounts Committee (PAC). GVWC emphasized that it continues to use revenue from water sales to sustain essential operations, including staff salaries, chemical purchases, maintenance, and fuel costs. In 2024, the company recorded a daily supply of 75,000 cubic meters of water its highest to date, according to internal logs.

The utility also reported significant infrastructure improvements, including the expansion of Freetown’s pipe network, rapid response to leak repairs, and the continued provision of subsidized community services such as water tanks and kiosks. These services currently support around 10,000 low-income households each month.

These achievements align with the goals outlined in the 2022 Freetown Water Supply Master Plan, which forms part of Sierra Leone’s national strategy to ensure universal access to clean water by 2030.

GVWC is now advocating for a proposed debt swap arrangement, which would allow it to offset outstanding debts owed by MDAs against its own tax liabilities. The proposal has been endorsed by the Public Accounts Committee, and if implemented, could significantly improve GVWC’s cash flow, there’s no corruption here,” GVWC reiterated, underscoring ongoing accountability mechanisms such as annual audits and parliamentary reviews.

Looking ahead, the company is pursuing funding for several major infrastructure projects. These include the construction of new dams at River No. 2, Hamilton, Kongo, and Toothpick—projects designed to triple the company’s water storage capacity by 2030.

The public has responded with a mix of scepticism and support, they’re trying, but debts shouldn’t excuse delays, said Mohamed Kamara, a Freetown street vendor whose post on social media platform X received over 500 likes.

Fatmata Sesay, a community leader in Goderich, acknowledged the company’s efforts. Water kiosks help us daily, she said. Others, such as public policy analyst Aminata Conteh, stressed the urgency of reform. they must update tariffs or risk deeper losses, she warned.

GVWC has also appealed for responsible media reporting, noting that misinformation undermines public trust. According to a 2024 public perception survey, 60% of Freetown residents say accurate news is crucial to maintaining confidence in public institutions.

The Sierra Leone Times reached out to the Ministry of Finance for comments on the proposed debt swap but had received no response by press time, as the debate continues, GVWC maintains that its record of resilience marked by service expansion, loss reduction, and ambitious future plans speaks louder than accusations.