A report released by the Auditor General has blown the lid on massive corruption, malpractice and poor management in water and sanitation companies across various counties.
The report which has been adopted by the Senate Public Investment Committee revealed that despite it being a devolved function, water and sanitation companies across most counties remain in the hands of private entities denying the majority of the population in those counties access to affordable water.
The report shows that the private companies in collaboration with corrupt county officials have been engaging in malpractices and embezzling the 47 counties in excess of Ksh.47 billion in lost revenue.
Some of the counties that have been flagged for malpractice and embezzlement include Wajir, Murang’a, Nairobi and Taita Taveta Counties.
Wajir Water and Sewerage Company Limited was cited for flouting hiring protocols and irregularly hiring 521 employees without following due procedure.
The committee has asked the Ethics and Anti-Corruption Commission to initiate investigations into the possible loss of funds from Wajir Water and Sewerage Company Limited (WAJWASCO) through irregular employment of over 500 staff and abuse of office.
Murang’a County is one of the counties where ownership and management of water services is in the hands of private investors.
Ownership of 4 out of 5 water and sanitation companies in Murang’a is in private hands despite the county sinking huge investments into the infrastructure. The revenue generated does not go to counties.
The private companies reaping from county investments include; Murang’a Water and Sanitation Company (MUWASCO); Murang’a South Water and Sanitation Company (MUSWASCO); Murang’a West Water and Sanitation Company (MWESCO) and Gatamathi Water and Sanitation Company.
The only County-owned company is Gatanga Water and Sanitation Company.
The committee established that the four companies were established and funded through public funds by the defunct local authorities but have not been transferred to the county yet.
Another County water body cited for malpractices is Nairobi City Water and Sewerage Company. The report indicates that the county cannot account for revenue amounting to Ksh. 39.2 million pointing to the loss of public funds through embezzlement.
The missing money is from the licensing of 657 or 85% of licensed private water bowsers.
Taita Taveta County is also implicated of malpractice and mismanagement of public funds through the Tavevo Water and Sewerage Company Limited.
The county has been cited for irregular payments of directors’ emolument, allowances and night-out claims amounting to Ksh.1.2 million.
To stop the losses, the senate committee has invited EACC to take over the investigation and already EACC has launched a probe into irregular payment of emoluments and allowances, and blatant disregard of public procurement laws and regulations resulting in loss of public funds through collusion.
The anti-graft body will also be looking into the non-remittance of revenue and irregular recruitment of staff without involving the County Public Service Boards.
The failure to submit statutory deductions payable to KRA, NHIF, and NSSF and also pension, failure to submit this money despite deducting it from employees continues to cause long-standing pending bills.
EACC has also asked the Governors put in place systems and procedures to address the identified malpractices in accordance with the applicable laws.
“As a preventive measure aimed at averting more losses and wastage while investigations continue, EACC has written to all 47 Governors requiring them to take reform actions pursuant to their constitutional responsibility as Chief Executive Officers under Article 179(4) of the Constitution,” says EACC.
Governors have been asked to submit a mitigation plan for addressing the above malpractices and thereafter provide quarterly implementation progress reports for review and monitoring by the Commission effective from the first quarter of 2023/2024 financial year.
