Water Crisis in Mississippi Exposes Costly Deals by Big Companies

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ICARO Media Group
Politics
05/02/2024 21h22

In a devastating blow to small towns across Mississippi, a recent investigation by The New York Times has revealed a series of failed promises and crippling debt caused by major corporations capitalizing on the state's water resources. The deals made by these companies, including the giant German corporation Siemens, resulted in exorbitant fees and lost revenue, leaving many towns worse off than before.

The water crisis in Jackson, the state capital, serves as a stark example of the consequences faced by communities when big corporations fail to deliver on their grand promises. In winter 2021, over 150,000 residents were left without running water, with faucets running dry or dispensing muddy brown liquid. The city faced weeks of water scarcity, impacting daily activities such as drinking, cooking, and bathing. Some desperate parents even sent their children into the woods to relieve themselves. The situation repeated itself in August 2022, further deepening the water crisis.

While local and state leaders engaged in finger-pointing, blaming each other for the water woes, Siemens emerged as a major culprit. The corporation had swooped into Jackson in 2010, vowing to install modern water meters that would boost revenues and rejuvenate the city's crumbling water infrastructure. However, Siemens failed to deliver on its promises, leaving Jackson with malfunctioning meters and inaccurate water bills that couldn't be collected.

Siemens did return the $90 million it had received for the project, but the damage was already done. Jackson found itself in a financial abyss, burdened with over $450 million in fees and lost revenue. The city was left unable to repair its failing equipment and aging pipes, resulting in unsafe drinking water and the eventual federal takeover of the water system in December 2022.

However, Jackson was not the only Mississippi city to fall victim to these ill-fated deals. The investigation uncovered how Siemens and other corporations targeted cash-strapped towns, making grand promises to modernize water systems and generate revenue. Municipal leaders, lacking expertise in water management, were enticed by the promise of cost-saving algorithms, cash-back guarantees, and the allure of installing high-tech meters at no cost to taxpayers.

Siemens, McNeil Rhoads (started by a former Siemens salesman), and Mueller, a North Carolina water meter manufacturer, crisscrossed the state, signing multimillion-dollar contracts in desperate towns. However, problems quickly emerged, with meters being installed incorrectly and failing to accurately measure water usage. Numerous cities experienced financial distress, leading to lawsuits in an attempt to recoup lost funds.

The role of the Mississippi Development Authority, tasked with vetting these contracts, also came under scrutiny. City officials relied on the agency's approval as a critical assurance, yet it failed to address ongoing problems or provide necessary support when issues arose.

Additionally, Mueller, the meter manufacturer, faced similar issues in other states such as California and Missouri, with faulty parts and high failure rates reported. Despite these problems, the company continued to tout its smart meters as a solution for water utilities, while failing to address customer complaints and financial burdens placed on cities.

The consequences for these cash-strapped towns, many of which are predominantly Black communities, have been devastating. Residents faced skyrocketing water bills, constant boil-water notices, and crumbling infrastructure, all while these companies continued to make grand promises and evade responsibility.

As the federal government stepped in to take control of the water systems, repairs have slowly begun, but the financial burden and distrust left behind by these failed deals remain. It is clear that accountability and transparency are necessary to prevent further exploitation of small towns and to ensure the provision of safe, reliable water resources for all communities.

The investigation serves as a cautionary tale, shedding light on the high cost paid by small towns when big companies prioritize profit over the well-being of communities. The need for comprehensive oversight and responsible partnerships in critical infrastructure projects is more evident than ever, as Mississippi and other states work to address the long-lasting repercussions of these failed deals.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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