Puran Brothers Waste Disposal Inc and Cevons Waste Management are standing by their ultimatum to the Mayor and City Council (M&CC) to suspend their collection services from next week if they are not paid a substantial portion of the over $300 million owed to them.
The companies, which are the two largest garbage disposal companies contracted by the city, wrote the M&CC last week indicating that they would halt garbage collection from November 14.
When Stabroek News contacted Puran Brothers’ General Manager, Kaleshwar Puran and Chief Executive Officer of Cevons, Morse Archer, they both said they have not received any response from the city administration.
Town Clerk Royston King had reported that more than $300 million is owed to the companies and both Puran and Archer said they are unable to operate with the large amounts still outstanding.
Puran explained to this publication that his company is owed approximately $140 million, while Archer said his company is owed a total of $201 million from August last year.
Archer told Stabroek News that because of the debt, the company has been “digging a deeper credit line.” “We have been struggling to pay staff. We have given a lot of extension and had negotiations since August (2015). I don’t think we can continue this way,” Archer said.
He stated that at this point they would have to draw the line on the service provided if they are not paid a substantial amount.
Meanwhile, Puran said his company is also hoping for a large portion of the money owed to be paid before it resumes any service. He stated that the last payment made by the council was “very insignificant” compared to what was owed.
He pointed out that attempts to contact the City Treasurer Ron McCalman were unsuccessful and that they were not invited to any meeting with any city official and as a result he was uncertain if any payment would be made.
Stabroek News was told the M&CC does not have the necessary financial resources to meet the debts. The city continues to rack up debt as its recorded expenditure continuously outstrips its recorded income. In September, it spent $161,683,750, which is more than double its recorded income.
In an invited comment, Mayor Patricia Chase-Green said since they have been served with notices, they have engaged the Ministry of Communities but they are awaiting a response.
However, she called on citizens to make use of the amnesty that is currently ongoing to make payments on their property taxes.
On Monday night, City Hall announced the amnesty as a mean of gathering “urgently needed” funds.
This amnesty, which will begin on November 15 and end on November 30, 2016, is intended to recover a substantial portion of $22 billion in property rates owed to the city in order to pay the city’s creditors, including its waste disposal contractors.
