LWB’s 2.8 billion profit is unreasonable – commentator

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A local social commentator has described the Lilongwe Water Board (LWB) annual profit of K2.8 billion as unreasonable.

LWB disclosed to have made K2.8 billion despite failing to provide enough water to residents. According to a report, LWB production was at 33,730,394 cubic meters against a target of 36,600,000 cubic meters in the financial year.

The sales production was at 20,950,329 cubic meters against 23,919,000 for the 2015/16 financial year.

Lilongwe Water Board slammed.

Lilongwe residents were affected as the board resorted to water rationing.

Commenting on the development, a commentator on human rights and social welfare Dr. Pearson Nkhoma argued that the profit does not reflect the mandate of the board.

“The sole purpose of LWB is to provide and distribute water to the people of Lilongwe not to make unreasonable profits. The fact LWB is competing and making more profits than other nationwide private financial businesses should worry the public. It is more disturbing to note that this profit was made when the body failed to meet its targeted annual production volume. Other areas had dry taps day-in-day-out. Yet, it is within that unbearable situation that the body made people to endure that it made close to 3 billion after tax profits. Quite unacceptable, I would say.

“The reaction this profit should generate from the public should be similar to what people could say if it were Queen Elizabeth Central Hospital, KCH or ADMARC reporting such profits. These bodies are not for-profit making.

“The profit, claimed to be a reflection on price adjustment among commercial and institutional customers, should have been used to significantly subsidise household customers, which could then have taken its after tax profit down. Accessing water is a right that all Malawians should join hands to safeguard,” said Nkhoma.

Earlier, Consumers Association of Malawi (Cama) faulted LWB for failing to supply enough portable water despite huge bills being given to customers.

However, the board blamed deforestation on catchment areas, poor rains in the 2015/16 rainy season and climate change to have fuelled water shortages to the residents.

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One Comment

  1. Lilongwe Water Board should have known better that by celebrating the making of this huge profit, they are actually celebrating that they have squeezed the poor Malawian harder with exorbitant water bills. Its is common knowledge that Malawians are spending sleepless nights high water and electricity bill and it doesn’t make sense for this utility service provider to celebrate the suffering of the poor Malawian citizen.