Three public utilities in US $25 million loss

Corruption and mismanagement over the last two years in the water, electricity and telephone public utilities in the Central African Republic resulted in a 15-billion-franc CFA (US $27.3 million) loss for the government, the state inspector-general, Gen Gabriel Ngaindiro, said on Thursday. Water supply, generation of electric power and the telecommunications sector were greatly affected as a result, Ngaindiro told a news conference in the capital, Bangui. He said the water utility, the Societe de Distribution d’Eau en Centrafrique (SODECA), the Energie Centrafricaine (ENECRA) - dealing with electric power - and the Societe Centrafricaine des Telecommunications (SOCATEL), had paid their senior staff "excessive and unjustified" salaries and allowances, which contributed to the loss. Instead of distributing water at lower cost as provided for in an agreement signed with a German company, he said, it was SODECA officials who benefited from the programme. Despite Bangui's proximity to River Oubangui, the city lacks access to safe drinking water, with residents relying mainly on wells. They risk catching waterborne diseases, especially during the dry season. Ngaindiro said the ENERCA managing director's salary and allowances constituted 40 percent of the power utility's monthly income, and that allowances for the chairman of the administrative council had been trebled without explanation. Regarding SOCATEL, he said many subscribers had acquired telephone connection but there were no records of the transactions. This had caused a loss of three billion francs ($5.4 million) in 2002. He added that unpaid telephone bills in the same year amounted 500 million francs ($909,273). Hospitals and other public facilities in the north of the country have continued to suffer water and electricity shortages. Fighting between government troops and fighters loyal to Bozize between October 2002 and March 2003 worsened the situation. Fighting ended in March with Bozize's coup but insecurity has persisted in most parts of the country.