Under the chairmanship of Vihiga Senator, Godfrey Osotsi, the Senate Committee on County Public Investments and Special Funds convened a meeting with the Governor of Mandera County, Mohamed Adan Khalif. The purpose of this meeting was to scrutinise the Auditor General's Report on the Financial Statement of Mandera Water and Sewerage Company Limited (MANDAWASCO) for the Financial Years 2018-2021, with the base year being 2020/2021.

During the meeting, it came to light that MANDWASCO is grappling with a myriad of challenges that have been adversely affecting both its revenue generation and service delivery. Among these challenges are recurring droughts, the lingering impacts of the COVID-19 pandemic, prevailing insecurity issues, and subpar infrastructure.

MANDAWASCO candidly acknowledged several financial discrepancies, including inaccuracies in their financial statements, a shortfall in revenue collection, and inadequate expense absorption. The company also cited difficulties in procuring fuel and experiencing delays in remittances. Another concerning issue that came to light was the employment of casual workers in violation of relevant employment regulations. Furthermore, MANDWASCO openly acknowledged the absence of an Audit Committee, raising questions about their governance practices.

Upon examination of the issues raised by the Office of the Auditor General concerning the Financial Statements of MANDAWASCO during the reviewed Financial Years, the Committee issued the following directives:

The Governor must take a keen interest in overseeing the operations of the water company within the county, in strict accordance with Article 179 of the Constitution.

Within 60 days from the date of the meeting, the Governor is mandated to ensure MANDAWASCO's compliance with the WASREB advisory dated 6th April 2023, directed to all Governors. Furthermore, the full ownership of the water company must be transferred to the County Government in line with the law, specifically the Water Act of 2016. The Committee expects the Governor to submit a copy of the CR-12 to validate this transfer.

To bolster the operations of MANDAWASCO, the County Government, in collaboration with the County Assembly, is urged to expedite the enactment of a County Water Act.

The Committee noted instances where the management of the water company submitted audit-related documents outside the prescribed timelines, contravening the provisions of section 31 of the Public Audit Act of 2015. Going forward, the Water company must ensure total compliance with these provisions of the law.

In the pursuit of good governance, sound accountability, protection of public resources, and enhanced service delivery, the management of MANDAWASCO is required to implement customer metering.

Within 60 days from the date of the meeting, the management of MANDAWASCO must maintain an updated asset register as prescribed by the National Treasury and the provisions of section 136 (1) of the Public Finance Management (County Government) regulations of 2015. A copy of the updated register should be submitted to the Committee for review.

The Committee took note of the water company's failure to establish an internal audit function and an audit committee, a violation of section 167 (1) of the Public Finance Management (County Government) regulations of 2015. The management is now obligated to set up both an internal audit function and an audit committee within 60 days from the date of the meeting. Additionally, the County Government must ensure that the internal audit function is adequately resourced.

The Committee observed that certain assets of the water company have not been transferred from the defunct local authorities, particularly the Mandera County Council. To address this, the County Government, in consultation with the Intergovernmental Relations Technical Committee (IGRTC), must ensure the transfer of all assets to the County Government within 60 days from the date of the meeting.

Joining Senator Osotsi at the meeting were other committee members including Vice Chair Prof. Tom Ojienda, and Senators Hamida Kibwana, William Kisang, Tabitha Mutinda, and Miraj Abdillahi. Senator Mohamed Chute also attended as a friend of the Committee.