The government is working along with Montserrat Utilities Limited (MUL) to make sure that there is consistency in its utilities service provision, according to Premier Joseph E Farrell.
During a press conference on 11 January, he explained that problems with the supply of electricity and water over the past several months led to the decision to intervene.
“We are working along with the company now, we have in place a small new board and we are working along with them,” the premier said in response to a media question.
Farrell said the government-owned but privately-operated company was struggling with capacity, which is needed to streamline services and making utilities provision resilient.
He explained he is aware that water and electricity are “critical for the survival of our peoples and our business in Montserrat”.
During the UK’s Foreign, Commonwealth and Development Office week-long budget support mission, he said they had discussed building capacity.
He added that they had spoken about bringing in somebody to help the government to stabilise services and to offer further advice and information.
Examination of accounts
The premier stressed that the FCDO has been aware of issues and “since day one” and has been included in discussions, which is why they provided funds for critical equipment.
The government has been looking at MUL’s accounts, he said, so that it can justify any future infusion of funds.
In December last year, in light of the ongoing financial difficulties, the government asked the MUL board to resign immediately.
The new board now includes the government’s financial secretary, the permanent secretary in the Ministry of Communication, Works, Labour and Energy, and MUL’s chief engineer.
“The new board will be expected to restructure the company and explore ways of addressing the financial problems,” a government press release said at the time.
Around the same time, Cabinet agreed to further government intervention, including funding an additional engineer for the MUL.