By SANCHESKA BROWN
Tribune Staff Reporter
sbrown@tribunemedia.net
THE Bahamas Electricity Corporation is projected to lose $16.3 million this year, according to chairman Leslie Miller –who said the corporation is on the brink of collapse and must make drastic changes immediately.
He said if BEC does not find a way to become self-sufficient, it will end up being run by foreigners.
According to Mr Miller, in the 2011/2012 fiscal year, BEC paid out $41.8 million in salaries, $11.8 million in overtime costs, $1.5 million because of sick leave and absenteeism, $3.7 million in medical costs, $3.1 million in bonuses and allowances, $348 million in fuel costs and $5.1 million in vacation time.
He said the corporation must tighten its belt as the government is not in a position to provide bailout funding to BEC.
“There are three options: reduce cost by decreasing wastage, reducing absenteeism and overtime by 80 per cent, reduce the cost BEC pays for medical coverage and employee pension benefits or reduce staffing by 200 to 400 persons or sell the organization to a private entity where there will be no guarantee of any jobs,” he said.
“The board has chosen number one, we do not wish to see anyone lose their jobs. We must improve productivity, reduce wastage on every level, improve the process in the supply chain. reduce overtime costs through the implementation of flexible work schedules and introduce a system tied to productivity that will hold each employee accountable for their own bonuses and their own increments.”
In 2010 BEC made of profit of $201,000. In 2011 saw a loss of $706,000.
Mr Miller said the objective of the corporation is to break even in three years and on the road to recovery and in five years turn a modest profit and be a strong, viable financially stable organization.
Comments
TalRussell 11 years, 4 months ago
Comrade Leslie if da light done off half the time why the need pay out millions in overtime pay, unless ya paying BEC workers to spend the extra time running half the light peoples homes and businesses.
Many moon years ago during the early 1960's when the now long time dead TV personality Arthur Godfrey was visiting to MC a party for Paradise Island owner Huntington Hartford, the A&P supermarket heir, when Hartford used the Island as his private playground, Comrade Arthur gave a press conference where he heaved high praise about the modern Nassau airport he landed at, the cleanliness of the Island and the friendliness of the natives and the well paved roads he was driven along , but he couldn't get over that when it was time to take his shower the water pressure was unbelievable weak and during the show he was Master of Ceremonies at, the power went off for the night and they had to revert to standby generators
Comrade Arthur been singing the BEC's bad management song, from the way back days of the original FNM Bay Street Boys. Comrade Leslie how many more consecutive UBP, FNM and PLP governments spending Billions will it take to fix "lites out," going on since Arthur Godfrey and Huntington Hartford was young men partying over on Paradise Island during the early 1960's?
For damn sure BEC is no sales booster for Christmas Lites? Thanks be God, for we old standby Christmas lights, we 'Eveready' red and green Candles.
http://www.youtube.com/watch?v=Wee44H...">http://www.youtube.com/watch?v=Wee44H...
by TalRussell
by TalRussell
dacy 11 years, 4 months ago
DO ;YALL THINK IF SOMEONE PAY $300,000.00 + IT WOULD HELP, IF ONLY A LITTLE??
joey 11 years, 4 months ago
The Chairman makes almost $100,000 thousand dollars a year from BEC,he owes BEC over $150,000 in electricity bills, is having a christmas party for BEC staff at his establishment where the company have to pay out thousands of dollars to him.Now please you see why BEC broke? The politicians for years has use BEC for their own advantage.
concernedcitizen 11 years, 4 months ago
our birth rate has been outpacing our GDP for decades and we have been absorbing it with goverment jobs . it is a formula that can,t go on mathmatically with taxes in creases and our standard of life decreaseing ,,simple ,we don,t need any more single mothers of six and 30 year old men bragging they have 10 children ..if we do continue like this there will be large ghettos of poor, no middle glass and the politicall elite ,,i,e jamaica and haiti ,,the choice is ours ,,,
shortpants 11 years, 4 months ago
This comment was removed by the site staff for violation of the usage agreement.
audleymitchell 11 years, 4 months ago
Colonial brainwashing and management by intimidation are alive and well. How would a foreign entity be better able to run BEC? The market is the same, the clients are the same, the equipment is the same, the circumstances would be the same. The measures a foreign entity would need to implement to come to profitability are the same measures the current management and board (or new management and board) need to implement. If political interference is removed (which can be done through restructuring the corporation) then management may be better able to proceed. I guess politicians are professional talkers. Sometimes, however, they should say something worth paying for.
spoitier 11 years, 4 months ago
You're partly right, but the point of a foreign entity is the fact that any government in power don't want to layoff people which is really needed to turn a profit, also the few Bahamians that have the money wouldn't touch BEC with a 1000 feet poll because they don't have the experience to run it and bring it back to profitability, and those who may have the ability to run it doesn't have the money to buy it. So that only left a foreign company that have the experience and the know how to run it and doesn't have to worry about an election if they lay people off.
ctlockhart 11 years, 4 months ago
How can you pay out 3.1 million dollars in bonuses and allowances if you are not turning a profit. Pure stupidity.
TalRussell 11 years, 4 months ago
Comrades how can you fix some'in if the man making the statement that it broke was himself appointed by a useless political patronage system?
It's hard not have a disregard for taxpayers money when that's how you get ya $100,000, plus expenses, paychecks.
A useless system generates useless people. Let's turn BEC into Nassau's best Museum?
by TalRussell
akbar 11 years, 4 months ago
From an inside source the good Chairman fail to mention the allegations of the Corporation's xmas party now being held at a bowling and entertainment emporium. A million dollar parking lot. Employees who have been dismissed for various offences hired again. Foreign contracts with alleged million dollar kickbacks being signed. And consumers with huge amount owing to the Corp still being uncollected. THE CORRUPT PLP IS BACK AND FULL SWING. This some of these fellas last stand and they taking every copper with em.
John 11 years, 4 months ago
B E C( bring enough cash) wow..this compny must set out a strategic plan with long term, intermediate and short term goals. BEC must find a way to wean itself off fossil fuels and manage its human and other resources more efficiently. Projected revenue must be matched with projected expenses. If BEC continues to walk blindly into the future (lights out) then it will go the way of the dinasaur
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