Guma Valley Water Company Refutes Allegations of Financial Mmismanagement
The Management of Guma Valley Water Company (GVWC) has strongly denied allegations of financial mismanagement following recent media reports and radio commentary suggesting over NLe 258 million was unaccounted for.
The company labeled the claims aired by Radio Democracy 98.1 FM’s “Daddy Wakabot” segment and published in the Hope Times Newspaper on April 16th and 17th as “false and misleading.”
The headlines in question — “GUMA VALLEY: OVER NLE 258 MILLION UNACCOUNTED FOR” and “GUMA VALLEY IN CORRUPTION SCANDAL” — have prompted GVWC to set the record straight.
Guma Valley Water Company clarified that the referenced NLe 258 million is not missing or misappropriated, but rather reflects accounts receivable — money owed to the company by Ministries, Departments, and Agencies (MDAs) (NLe 32.6 million) and other customers over several years. The company emphasized that this is a debt recovery challenge, not a corruption issue.
Addressing its tax position, the company acknowledged long-standing Withholding Tax (NLe 1.6 million) and PAYE (NLe 18.8 million) obligations. These liabilities, the company stressed, were fully disclosed in its 2023 draft financial statements and confirmed by the Sierra Leone Audit Service.
Management attributed delays in payment to financial constraints caused by outdated water tariffs (unchanged since 2021), high inflation, and widespread water theft.
Nonetheless, GVWC is actively making monthly payments on both current dues and arrears. Following recent discussions with the Parliamentary Public Accounts Committee, the company has committed to paying NLe 50,000 monthly toward clearing tax arrears.
The company underscored that revenues from water sales fund essential operations, including staff salaries, maintenance, chemical procurement, and fuel costs; and reaffirmed its commitment to delivering clean water and expanding access throughout the Western Area, even amid financial challenges.
Guma Valley Water Company revealed that it is in active discussions with the government to implement a debt swap initiative. Under this plan, debts owed by MDAs would be used to offset the company’s tax liabilities — a strategy strongly supported by the Public Accounts Committee. The initiative is expected to enhance cash flow, support tax compliance, and ensure service continuity.
In response to the corruption allegations, GVWC firmly stated: “There is no corruption involved.” The management highlighted its ongoing commitment to transparency, accountability, and institutional strengthening.
The company went on to categorize some of its accomplishments despite limited external support, such as:
75,000 m³/day of daily water supply—unprecedented for this time of year.
Expansion of the pipe network to underserved communities in Freetown.
Sustained community-based water services through tanks, kiosks, and water trucking at subsidized rates.
Reduced water losses through prompt pipe replacement and repairs.
Protection of infrastructure and improved institutional capacity.
Launched the Freetown Water Supply Master Plan in December 2022, aligned with national targets for universal water access.
Guma Valley Water Company disclosed that it is currently seeking major investments to construct new dams at the River No. 2 Community, Hamilton, Kongo, and Toothik to significantly boost raw water storage capacity. These projects are central to the company’s vision of achieving universal access to clean water in the Western Area by 2030.
The company urged the media to report responsibly, emphasizing the importance of accuracy and balance in public communication. “A truthful portrayal of Guma’s progress is crucial to building public confidence and attracting the investment necessary to secure the Western Area’s water future,” the company stated.
