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In an attempt to tackle the issues raised by the Office of the Auditor General in various counties, the Senate Committee on County Public Investments and Special Funds, under the stewardship of Vihiga County Senator Godfrey Osotsi, held a meeting with the Governors of Makueni, Homa Bay, and Marsabit. The discussions, revolved around the affairs of Water and Sanitation companies, included the review of the Auditor General's Reports on the Financial Statements for the years 2018/19, 2019/20, and 2020/21.
Appearing before the committee was the Governor of Makueni County, Mutula Kilonzo Junior. The reports on three Water and Sanitation companies - Mbooni Water and Sanitation Company Limited, Wote Water and Sewerage Company Limited, and Kibwezi-Makindu Water and Sanitation Company Limited were thoroughly examined. The Committee identified crosscutting issues including unclear ownership, non-revenue water, and negative working capital.
The Committee asked the Governor to address these matters promptly. He was directed to take full ownership of the water companies within 90 days, in accordance with the Water Act, 2016. Further, a comprehensive plan to manage the high Non-Revenue water issue was requested to be submitted within 14 days. Moreover, strategic intervention measures are expected within 60 days to revive the water companies.
Specific directions were also given concerning individual companies. For Mbooni Water and Sanitation Company Limited, a complete restructuring of the Board of Directors within 60 days was recommended, along with the total reformation of the management staff, emphasising the finance and accounting department. Regarding Wote Water and Sewerage Company Limited, the Governor was directed to renegotiate an agreement with Tana Athi concerning a base revenue payment.
Meanwhile, the Governor of Homabay County, Gladys Wanga, on her part addressed issues with the Homabay County Water and Sanitation Company Limited and Alcoholic Drink Fund. After reviewing the problems noted by the Auditor General, the Committee directed Wanga to take keen interest in the Management and Operations of the Water Company and fast track the ownership transfer to Homabay County Government within sixty days. Additionally, a comprehensive plan to address the high Non-Revenue water issue, which currently stands at 45%, is expected within 14 days. Wanga is also expected to address other matters such as Asset management, Risk management, and Internal controls.
The Governor of Marsabit County, Mohamud Mohammed Ali, too, appeared before the Committee to discuss the state of Marsabit Water and Sewerage Company Limited. Here, the Committee discovered a failure in the preparation of financial statements for the respective years, thereby breaching the provisions of the Public Finance Management Act. As a result, the Auditor General could not perform an audit, leaving no reports for the Committee to examine. Recognising recent changes in management, the Committee directed the newly appointed Board of Directors and Managing Director to prepare and submit the financial statements to the Office of the Auditor General within 60 days. The Governor was also instructed to submit the company's CR-12 within 30 days.