For the last ten years the Nairobi City Water and Sewerage Company (NCWSC) has not remitted over Sh2 billion to the taxman.
Investigations by The Informer also revealed that NCWSC debt stands at Sh7billion as at June 30 2012.
He is also said to employ his cronies without subjecting them to the requisite procedure.
According to insiders, Gichuki oversees fabrication of books of accounts every financial year.
The institution’s book of accounts did not reflect the true financial position and are inaccurate as they do not include property, plant, land and equipment. NCWSC has been dogged by claims of poor meter readings, exaggerated water bills and poor maintainace of sewer system.
Erroneous water billings for 2011 and 2012 was reordered as Sh1.1 billion. “out of Sh7.8 billion billed by the company for 2012 Sh5.5 billion was provided for as bad and doubtful debt.
Further, assets and liabilities inherited from CCN were not documented and revenue reserve balance of Sh199.4 million including Sh697million transferred from the capital reserves in 2007/2008.
According to internal correspondences seen by The Informer, Gichuki is unable to give a satisfactory explanation to the revenue reserves reduction from an opening balance of Sh1. billion to Sh199million closing balance for the year 2012.
Land Grabbing From the report 10 acres of the firm’s land in Karen has been hive off with only an office sitting in less an acre.
Previously, Gichuki scuttled new management takeover after the Nairobi County Government advertised for the positions of nine new directors. The move coincided with increment of water leveies that saw NCWSC control in excess of Sh2billion as income generated.
The change of management was in line with the court ruling delivered in November 2014 directing a new board be constituted afresh after the previous was declared to be in office illegally.
The High court disbanded Nairobi Water’s 11 member baord after it ruled that the members were in office illegally.
In a judgment delivered by High court judge Justice Mumbi Ngugi, the members of the board were ordered to vacate office and the vacancies advertised for fresh competitive recruitment.
A forensic audit against NCWSC was instituted to probe claims of massive of graft, financial misappropriation, poor maintainance of human resource register and flawed procurement procedures.
Ernst and Young audit firm launched the yet to be released report in on October 6 2014 after Nairobi County wrote to Athi Water Services Board on September 15 last year to carry out fresh forensic audit to verify the claims.
Consequently, Athi Water and Services Board commissioned Ernst and Young, an international audit firm to carry out the probe in order to verify the fraudulent claims.
The probe will either incriminate or clear Gichuki of alleged graft as a major management takeover is in the offing.
The investigation is expected to unravel the manner in which multi-million tendering system and warding was done, alleged diversion of finances from other line agencies, exaggerated human resource register and water billing systems.