RETIRING GENERAL MANAGER of the Barbados Water Authority (BWA), Denis Yearwood, at a farewell function in his honour last weekend spoke of the need for a new governance model for the institution he led for more than two decades.
Mr Yearwood’s viewpoint has merit and should be supported. We have a system of governing this monopoly enterprise which results in unnecessary encumbrances that cannot be the business model for this era.
The BWA evolved from being a department of central Government into a statutory corporation. The question is whether this move has made it any more transparent, accountable or efficient. The BWA has enjoyed much of its success due to external demands – meeting the requirements, especially since the early 1970s, of the ever expanding commercial and residential sectors.
Barbadians have also come to view their utilities differently with the privately-owned telephone and power companies expected to have operating profits, but the BWA as providing a type of social service.
The reality is that the BWA can be no different from the other utility operators. It must be driven by three critical factors: governance, financial and commercial management.
Decision making regarding the provision, management and regulation of our water services must go beyond its sole owner – Government, and while not suggesting privatization, it must now include a broader base.
Our National Insurance Board is a good example of governance.This vital utility provider cannot continue regulation by its direct owner with its officials determining pricing. There must be effective oversight and the BWA must be subjected to price regulation for both water and sewerage rates even if we agree not at marginal cost.
There must be appropriateness of its tariffs and revenue management systems, while its financial sustainability must address a range of issues from taxes to the said tariffs.
In the same way the BWA will strive to improve its communication with the political directorate and the funding agencies, it must also do the same with its customers.
Its annual reports must be timely and readily available so questions ranging from the adequacy of funding its pension plan to any findings by the external auditors should not be left to what is reported from the floor of the House of Assembly or from the Auditor General’s report.
Perhaps, now Mr Yearwood does not have to look over his shoulder, he should lead public discourse on what type of governance model may best fit the BWA. His forthright views can redound to the benefit of policymakers and moreso the wider public.
Public intervention at this stage can yet be his legacy.
