Govt Releases K115.5 Million For Water Utilities’ Retiree Benefits

Retired employees of commercial water utility companies are set to receive part of their outstanding terminal benefits following the release of K115.5 million by Government.

The funds will benefit Retirees from all 11 commercial water utilities, with seven companies expected to have their arrears fully settled.

Ministry of Water Development and Sanitation Permanent Secretary, Romas Kamanga, says the release of the funds is also aimed at easing the financial strain affecting the utilities.

Mr. Kamanga says the water companies have accumulated significant liabilities over the years, partly due to unpaid water and sanitation bills owed by government institutions.

He says the funds will be channelled specifically towards terminal benefits through a debt-swap arrangement, which will also help reduce Government’s outstanding obligations to the utilities.

The Permanent Secretary, says the remaining four utilities will receive substantial partial payments, with additional resources expected to be mobilised in subsequent phases to clear the outstanding balances.

He has directed all beneficiary utilities to ensure the funds are used strictly for terminal benefits and to submit audited expenditure reports in line with the Public Finance Management Act.

By Esther Munanga.