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Two thousand to lose jobs at Ghana Water Company

Mon, 15 Oct 2001 Source: --

The 4,200 workers of the Ghana Water Company are bracing themselves for a massive retrenchment exercise under which nearly half the workforce might lose their positions in a restructured company.

The Public Agenda revealing the story says officials are putting a gloss over potential loss of 2,000 jobs, by painting a picture that the company was assisting redundant workers to set themselves up as private business entrepreneurs. The paper however recalled the history of retrenchment exercises in Ghana saying they are replete with unfulfilled promises which has left workers apprehensive about the exercise.

According to Deputy Managing Director; S.O. Lamptey, only about 60-80 workers would be retained by the restructured company, which would only supervise the assets of the company. Between 2,000 and 2,400 would be absorbed by the private companies, which will be involved in the new exercise.

"Those who are technicians," according to Lamptey, "will be assisted to set up on their own and registered with the new water company to undertake laying of pipes and repairs." The rest, likely to be of non-technical nature, would have to fend for themselves.

The Deputy Managing Director told this paper, though, that the situation was still fluid. "Nothing is concrete yet. We are still working out the modalities."

Meanwhile, authorities are busily defending their choice of foreign companies listed to participate in the restructuring exercise against accusations that their mother companies are facing crisis of solvency and competence in their home countries.

"If they are guilty, prove it." That is how the Water Restructuring Secretariat of the Ministry of Works and Housing challenged the Integrated Social Development Centre (ISODEC), about claims by the Non-Governmental Organisation that some of the multinational companies short-listed to run the water systems under the private sector participation have corrupt backgrounds.

ISODEC has alleged that some of the multinational companies short-listed to operate Ghana Water Company Limited's water systems have backgrounds tinted with corruption in their operation in other parts of the world. "No one has brought to us any court judgement," an official of the Secretariat David Amoah said of the allegations.

The ISODEC has countered, saying that it is not up to them to show the evidence, they argued that the Secretariat should use the State's machinery to check on the companies in the countries they are alleged to have operated.

Nine international companies were short listed after going through the pre-qualification stage. They include: N.V. Nuon/Biwater PLC, Compagnie Generale, Eax/hilliburton Brown, Saur International/Skanska International, United Utilities Overseas Holding Ltd and Suez Lyonnaise Dex Eaux for the Business Unit A.

The country's urban water systems have been divided into two business units. Another three companies; Saur International (France), Vivendi and Brown & Root (ltd), Northumbrian Water/Taylor Woodrow Construction have been short-listed for the Business Unit A.

The ISODEC maintains that Saur is alleged to have made as many as 12 corrupt and political payoffs in the World Bank-funded Lesotho Highlands Water Project.

Also Bouygues, the parent company of Saur and Suez Lyonnaise Des Eaux, is alleged to be under investigation for corruption and the operation of cartels in other parts of the world. In 1996 the former vice-president of Bouygues was charges with corrupt practices and imprisoned for invoice forgeries amounting to FFR. 3.2 million.

Bi-water, the British led consortium of companies specialising in water and sewage treatment is also under investigation for corruption in the Panama Privitisation Project, according to the Aganda.

Source: --