GPL: Accounting firm was not stealing or tampering with electricity
-billing problem/faulty meter had been reported since Dec 2001
Stabroek News
November 12, 2003
The Guyana Power and Light (GPL) yesterday refuted allegations in sections of the media that accounting firm Jack A. Alli and Sons had been either stealing electricity or tampering with its supply.
The company in a separate statement said that over the past two years it had made several reports of a billing oversight and then a faulty meter.
In a strongly-worded statement following the company's explanation of its electricity dealings, GPL said "contrary to reports appearing in the media, at no time did any of the checks reveal that the consumer had either tampered with the supply or had been stealing electricity."
The GPL release signed by Chief Executive Officer Rabindranauth Singh, explained that as part of the company's routine activities in handling consumer's accounts, a decision was made by the commercial staff to check the installation of a consumer that was being estimated for a period of more than nine months. This account was in the name of Jack Alli and Sons, the private firm of the GPL Chairman Ronald Alli.
Jack A. Alli, Sons and Co. said the recent reports which surfaced late last week have caused great concern to its partners and staff, raising doubts about the integrity of the firm, specifically in relation to the electricity charges incurred for the office.
The release said the firm, which has always operated out of its current location, always maintained the policy of settling all invoice charges for services rendered, including utility services. It said GPL employees installed the current electricity meter in August 2001, but that afterwards, they noted that no billings were received for the period up to December 2001.
"Our firm, please note our firm, then wrote to GPL on December 6, 2001 advising of this situation of non-billing and requesting urgent attention. We wrote again on January 17, 2002 advising of the continuing problem as no response had been received. On January 25, 2002 we received a response from the company advising that their database was now updated to include the new meter installed on our premises in August 2001. Estimated back charges were then billed to us for the period of the new meter when no billings were received and the period of a previous faulty meter. This was based on readings from the new meter. We subsequently settled all outstanding back charges with the company by April 17, 2002," the company stated.
It said fluctuating readings of the new meter were observed in the latter half of 2002 and that this led GPL to deem the meter faulty. Jack Alli, Sons and Co. said in December 2002, GPL commenced estimating its billings "in keeping with its normal practice".
"This position was established by our firm in discussion with management of GPL in March 2003 when continued estimated billings were being received. On making a request for a replacement meter our firm was informed that there were no meters in stock. On April 21, 2003 we wrote, please note we wrote, to the company formally requesting that our meter be replaced urgently. We were again made to understand that no new meters were immediately available. To date, no new meter has been installed and charges continue to be on an estimated basis and therefore subject to change."
GPL confirmed that further investigation revealed that the consumer had brought the matter of the malfunctioning meter to the attention of GPL's management on more than one occasion, the last occasion in April 2003, to the then CEO.
Jack Alli, Sons and Co. said it was made to understand that confirmation of the charges would be done once the new meter is installed and a fair estimation of usage is carried out. It said in the latter part of October 2003, they understood that GPL imported a small amount of meters to replace faulty units in the system.
GPL in its statement said there is no clear or documented reason why the meter was not replaced at the time the reports were made, but that the current management's initial focus earlier this year was to address a significant number of outstanding applications for new services.
"At that time in early May, there were no meters in stock and an urgent order was placed to deal mainly with the backlog of new applicants. The initial stock source was exhausted and recently a number of meters have been received from a second order. This will allow the company to address the meter problem with Jack Alli and Sons and other meter-related problems that other consumers currently face. In addition, the company will ensure that the meter removed is checked as thoroughly as possible to ascertain the possible cause of failure," the power company stated.
Meanwhile, Jack Alli, Sons and Co. said it was pleased to understand in the first week of November 2003 that GPL had identified the faulty meter at its location for replacement from the small stock now available and it is in the process of executing this assignment. The company said that it was during the corrective process that the incomplete information was placed before the media in an apparent attempt to damage the integrity of the firm.
It said in a visit during the week that ended November 7, 2003, GPL staff confirmed the fact that the meter was faulty. The company said it wishes to point out, too, that its offices are located in an area of Georgetown, which operates at 50Hz from a primary voltage of 4KV with a 100 amps meter thereby restricting the quality of electricity that it can consume. It said that at no point were any identified employees of GPL prevented from inspecting the property and, more specifically, the meter and wiring of the building.
"We are conscious, and GPL is aware, that the meter at our location is faulty...Our firm will continue to settle its utility billings as invoiced and will continue to work with GPL to correct deficiencies in our billings, as the events of the past two years have shown," the company stated.
Meanwhile, GPL said it would seek to recover, from Jack Alli, Sons and Co., the estimated amount that was under-billed.