Chester’s state-appointed receiver, Michael Doweary, and his chief of staff, Vijay Kepoor, have a plan to bring the city out of bankruptcy by monetizing the Chester Water Authority, provided it is sold to a public entity.
Now, Chester’s Official Committee of Retired Employees is suing the receiver’s office, seeking a change in the sale conditions to include private entities, writes Kenny Cooper for WHYY.
Retired city firefighters, police officers, and office workers argue they would receive much more money for the CWA if it was sold to a private company.
“By preventing private-sector entities from making stand-alone bids for the Water Assets and inviting the loss of potentially hundreds of millions of dollars in sale proceeds, the Receiver is failing to pursue a value-maximizing transaction that would immensely benefit the City and the Retirees and is thus breaching this fundamental duty,” the complaint reads.
Aqua Pennsylvania has previously made a $410 million offer for the CWA, which serves more than 200,000 people in 37 municipalities in Delaware and Chester Counties.
Opponents of water utility privatization argue it would lead to higher bills for customers.
The deadline to submit bids on the CWA is Sept. 2.
Find out more about the CWA and its relationship to Chester at WHYY.
