The Montserrat Office of the Auditor General releases its findings of a Performance Audit of Montserrat’s Utilities Limite

Damaged and aging water-networks & power-infrastructure and a high risk of major systemic failures were among the findings of a Performance Audit of Montserrat’s Utilities Limited (M.U.L.).

The audit was conducted by the Montserrat Office of the Auditor General.

The report highlighted that most of the distribution-network is old and many sections of the network are leaking or damaged.  

There are large annual losses of water at various points of the network, in addition to the losses at the spring-sources.  

The report says the above-ground power-network faces multiple risks for example extreme weather-events; environmental hazards), and the water-network is at risk from the climate-crisis, from human activities, and from the activities of various species of animals, especially at and around the water-sources. 

It says water-quality is at a very high risk.

Meantime, there was a drastic loss of over 38,950,000 gallons in water-supply at Killikrankie Springs during years 2020 to 2023.  

Since year 2020, the net output from every spring-source of M.U.L.’s water has declined rapidly.  

For example, Killikrankie Springs, the long-time major source of water-supply catchment area, urgently needs repairs.  

In December of 2020, the Killikrankie Spring recorded a catchment of about 150,000 gallons of water per day.   

In year 2023, this spring recorded a catchment of only 50,000 gallons of water per day, nearly a 70% loss!.

Meanwhile, groundwater is rapidly depleting through heavy use of wells at Belham.

According to the OAG, at the time of the audit, there were 7 engines or generators at M.U.L.

During the Fieldwork Stage, four of them were in operation (Numbers 3, 5B, 6, and 7); one was out of service for complete maintenance (No.4); and two were phased out (Numbers 1 and 2).

Of the 4 engines that were operating, two generators have major radiator issues.

The audit also noted that M.U.L. has been consistently operating at a net loss for the past 8 years. 

In recent years, the Company’s administrative and other operating costs continued to exceed the Divisions’ gross profits, leading to net losses since year 2016.  

Delays by suppliers, longer shipping and delivery times, and rising costs of imported fuels, vehicles, equipment, generators, spare parts, and other items, together affect every part of the Company’s operations and finances.

The Office of the Auditor General commended the long-serving technical officers that have helped to sustain the frontline operations despite severe financial constraints and supply-chain challenges.