Last week, we commenced reviewing the operations of the Guyana Power and Light (GPL) in the light of its disastrous performance over the years, despite the massive subsidies and capital contributions from the Treasury. To this must be added the continued funding from the Inter-American Development Bank since the early 1990s to assist in upgrading GPL’s operations.
In addition to the high salaries being paid to senior management personnel, GPL recorded massive losses totaling $12.282 billion for the last seven years. It also converted $7.5 billion ($1.5 billion in 2011 and $6 billion in 2012) in fuel subsidies from the Treasury towards an increase in its share capital but there was no evidence that Parliament gave the necessary approval for this change in arrangement. Had the subsidies been accounted for as revenue, GPL would have shown a reduced loss of $2.935 billion for 2011 and a surplus of $1.127 billion for 2012.
Today, we continue our analysis of
