System loss due to leaks: VIWAD lost P1.82-M in 2017 due to leaks
posted 27-Nov-2018  ·  
4,333 views  ·   0 comments  ·  

The Commission on Audit has urged the management of the Virac Water District (VIWAD)  to adopt measures to lower its system loss and reduce “unaccounted water” to a minimum, following a finding that it lost P1.82 million worth of water last year.

In turn, the VIWAD management put the blame on its old water system as well as road widening projects of the Department of Public Works and Highways (DPWH).

In its audit of the 2017 transactions of the water firm, the government watchdog found out that last year, VIWAD had a total production of 3,219,108 cubic meters of water from gravity and pumped sources.

Of the amount, only 2,423,434 cubic meters were metered and billed, with the difference of 795,674 cubic meters described as “Non-Revenue Water” or considered lost in the distribution system.

The difference of 24.72 percent pertaining to the NRW is considered high when compared to the policy of the Local Water Utilities Administration (LWUA), resulting in VIWAD sustaining foregone sales of P1.82 million.

In 2009, the agency had adopted a maximum acceptable non-revenue water of 20% in order to further improve the efficiency level of water districts.

To put the NRW of 795,764 cubic meters of ‘lost’ water in another perspective, the quantity can fill up 318 Olympic-size swimming pools like the one at the Catanduanes Athletic Complex.

The estimated loss of P1.82 million refers only to the difference between the actual NRW and the allowable NRW of 643,822 cubic meters. The actual volume of “non-revenue” water alone is worth P9.5 million, using the COA calculations.

The production manager explained to the audit team that the road widening projects of the DPWH largely contributed to the high NRW and added that the water being rationed to residential areas inadequately supplied with water.

In the same audit finding, the COA commended the water district for accomplishing a satisfactory collection efficiency for its 2017 receivables but recommended that it improve its collection efficiency as far as prior years’ accounts are concerned.

For its 2017 billings for water, the VIWAD had a commendable collection efficiency of 97.36 percent, however, it managed to collect only P0.71 million, 23.85 percent of its uncollected receivables of P2.97 million.

“This is not in conformity with the aforementioned sections of Presidential Decree No. 198 as amended and consequently deprived the water district of additional funds to finance its various programs, projects and activities for its effective operation,” the COA stated.

The Commission also disclosed that the water district was not able to submit its Water Safety Plan (WSP) for 2017 to LWUA, although it was regular in its submission of water samples for bacteriology tests to ensure that that water it supplied to its concessionaires are of safe quality.

The management, however, assured that the plan has already been prepared while results of the microbiological tests showed the samples “passed” the laboratory examination.

The same audit report showed that while the water district has unsettled disallowances of P2.47 milliobn as of Dec. 31, 2017, with P636,000.00 incurred by a former general manager for extraordinary miscellaneous expenses in 2009. Another P1.982 million was released as Cost of Living Allowance (COLE) from November 2004 to October 2008 to VIWAD officials and employees, with the allowance subsequently disallowed in audit. Only P147,617.08 was settled in the last four months of 2017, the report bared.

new to
connect with us to leave a comment.
connect thru
home home album photo album blogs blogs