Corruption, high-level interventions impeding GPL's efforts to curb electricity theft
Board member, former member implicated in electricity tariff controversies
Stabroek News
April 20, 2007
Stabroek Business has been reliably informed of an incident in September 2006 in which business premises associated with a former member of the Board of Directors of the Guyana Power and Light Company (GPL) were found to be fitted with a meter that had been "fixed" to under - record electricity consumption. The discovery reportedly led to the former Board member being billed to the value of the amount of the electricity estimated to have been consumed during the period that the "fixed' meter was in use. No further action was taken in the matter.
This newspaper has also learnt of another case last year, this time involving a serving member of the GPL's Board who is believed to have "engineered" the transfer of the officer responsible for disconnections after an attempt had been made to disconnect electricity at his home for a bill totalling almost $200,000.00. The full amount of the bill owed by the Board member reportedly remains unpaid.
The two incidents, a source close to the GPL told the Stabroek Business, exemplify the difficulties confronting the company in its quest to arrest a widespread pattern of consumer fraud in which employees of the GPL have been implicated. This newspaper also understands that selective high level interventions from within the GPL to forestall action against some customers who steal electricity has created serious schisms among officials and departments within the company.
According to the GPL source the alleged meter "fixing" was discovered last September at a city business place which had had a new meter fitted in March 2006. A crew from the Company's Loss Reduction Unit visited the premises and discovered that the meter had been fitted with a device known as a "jumper" which has the effect of concealing the full amount of the electricity consumed. Stabroek Business understands that the wife of the former Board member who was on the business premises at the time was notified of the discovery and served with a "contravention letter." The source told Stabroek Business that the former Board member subsequently sent communication to GPL Chief Executive Officer Bharrat Dindyal implying that members of the crew from the Loss Reduction Unit who had made the discovery may have been seeking a bribe. However, a report on the discovery was submitted and processed and the former Board member was served with a bill to the estimated value of the electricity not registered through the meter and the bill was subsequently paid.
Stabroek Business understands that even after the report by the Loss Reduction Unit had been made and the payment effected by the former Board member functionaries within the GPL continued to advocate that members of the crew be "disciplined" for embarrassing the former Board member.
Raids by crews from the GPL's Loss Reduction Unit are usually carried out based on audits designed to detect sharp and unexplained reductions in electricity tariffs appearing in consumer records.
The case allegedly involving the serving member of the GPL's Board relates to an electricity disconnection order carried out at his home but which was subsequently rescinded on instructions from "higher authority" despite the Board member's failure to settle the outstanding amount. Stabroek Business understands that the Board member forestalled a second attempt to disconnect the service to his home for the same amount and that he subsequently intervened in a move that resulted in the internal transfer of the then Customer Services Controller. It is understood that the amount owing to the Corporation by its Board member is yet to be fully settled.
Stabroek Business has been informed that there were other cases in which prominent business houses have either been implicated in meter `fixing' scams or have sought to circumvent payment of large amounts in electricity bills owing to the GPL.
Last year the GPL made a public disclosure regarding millions of dollars in losses being incurred by the company as a result of various incidents of electricity theft estimated by the Corporation at around $3m but which this newspaper understands may actually amount to hundreds of millions of dollars. Last year's disclosure pointed to collusion between GPL officials and consumers. Following months of silence on the issue Dindyal told a press briefing that a decision had been taken to bill the offenders for the stolen electricity rather than take legal action against them. However, in the case of at least one substantial company where tens of millions of dollars were involved it is not known what action, if any, was taken.
Some departments within the GPL have come under public scrutiny in the wake of charges that strategically placed officers are in collusion with both domestic and commercial consumers to defraud the Company. This newspaper is in receipt of information attended by what appears to be persuasive evidence of collusion between GPL functionaries and a city restaurant in 2003 to circumvent electricity charges to the establishment. Stabroek Business understands that when representatives of the GPL's Loss Reduction Unit visited the restaurant in August 2003 it was discovered that the two meters serving the premises had been "cannibalized" and that the establishment was enjoying unmetered electricity. The meters on the premises were changed later that year. However, it is unclear as to whether or not an amount estimated at around $5m was ever paid by the delinquent establishment, and Stabroek Business was told that officers attached to the Corporation's Commercial Sevices may have misled a meeting at which the company's Chief Executive Officer was present regarding the settlement of the restaurant's electricity bill. Stabroek Business has also been notified that the corporation's records include credits totalling more than $7m that were applied to the restaurant's balances in February 2004. The credit adjustments were reportedly authorized by members of the Commercial Services Department. The Head of Commercial Services Department during the period of the multi-million dollar irregularities has since been promoted.
Meanwhile, concern has also been expressed over what Stabroek Business has been told is the role being played by the GPL's Internal Audit Unit in duplicating the work of the Loss Reduction Unit and making selective disconnections based on the discovery of irregularities. The GPL source told Stabroek Business that consumers have expressed concern over the heavy-handed approach of Internal Audit officials who are customarily accompanied by policemen during their raids and who have been accused of seeking bribes from delinquent consumers.