Today, the Senate Committee on County Public Investments and Special Funds, led by Vihiga Senator Godfrey Osotsi, delved into the issues highlighted in the Auditor General regarding the financial statements of the Lamu Water and Sewerage Company (LAWASCO) for the fiscal years 2018-2021. Lamu County Governor, Issa Timamy, attended the meeting to provide responses to the concerns raised.

Upon thorough consideration of the findings laid out in the Auditor General's Report, the Committee issued specific directives to the Governor for timely implementation. The instructions include the Governor's active involvement in managing and operating the water company.

The Committee underlined instances of mismanagement within LAWASCO, prompting the Governor to disclose the name of the Managing Director during the review period. Additionally, the Committee called upon the Ethics and Anti-Corruption Commission to initiate investigations into the company's prior financial operations, demanding a preliminary report within 14 days.

Notably, the Committee observed that the company had exceeded the recommended benchmark of 25% for Non-Revenue Water. The Committee directed the Governor to formulate comprehensive strategies to tackle this issue and demanded clear plans for addressing both physical and commercial losses. The effectiveness of these measures will be examined in the subsequent audit cycle, and verified by the Auditor General's office.

Concerns were also raised about the company's trend of financial losses and negative working capital. The Committee directed the Governor to devise innovative measures to restore financial health and self-sustainability. Additionally, the Committee emphasized adherence to financial management laws and closer monitoring of the company's performance by the County Executive Members responsible.

To address high trade receivables, the Committee instructed the County Government to establish a debt recovery plan, subject to Auditor General verification. The company's management was directed to produce a debt-aging analysis within the next 14 days for the same purpose.

Internal control systems, including debt management and risk control policies, were highlighted as necessary for guiding the company's operations. The Committee issued a 60-day deadline for their implementation.

Further scrutiny revealed that certain assets had yet to be fully transferred to Lamu Water and Sewerage Company's ownership. The Committee urged the County Government to expedite the process, providing legal ownership documents for relevant assets and submitting an updated asset register for verification.

The Auditor General's office was tasked with assessing the status of stalled company projects and advising the Committee within 14 days.

Accompanying Senator Osotsi were Senators William Kisang, Karungo Thangwa, and Miraj Abdillahi. Senator Edwin Sifuna attended the session as a friend of the Committee.