The Ethics and Anti-Corruption Commission (EACC) and the Office of the Auditor General have issued a joint cautionary notice to county governors against mismanagement of water and sanitation companies involving corrupt individuals who are not employees of the devolved units.
According to the 2010 Constitution, these water and sanitation companies are to be managed by county governments, but a report arising from investigation by EACC and the Office of the Auditor General reveals a significant number of these entities were under the control of private individuals who were exploiting them for personal gain.
In a joint cautionary statement, the EACC and the Auditor General, claimed that county governments were employing proxies to engage in financial irregularities.
According to the cited investigations, cartels had exploited the introduction of devolution in 2013 to establish their influence and systematically penetrate county governments, resulting in the establishment of a well-organized network of corruption.
Murang’a county is said to bear the brunt of this pervasive corruption, enduring the most substantial repercussions.
The Eacc cautioned the county administration, led by Governor Irungu Kang’ata, to exercise utmost vigilance in order to prevent the loss of public funds and safeguard the interests of taxpayers.
“Highlights of the identified malpractices included that some water companies have never been transited from local authorities to the county governments.
“For instance, four out of five water and sanitation companies in Murang’a County are under the control of private persons despite these being county investments.” Read the statement in part.
Other malpractices identified in the counties were the award of contracts to unqualified firms and embezzlement of staff statutory deductions payable to agencies such as the National Social Security Fund (NSSF) and the National Health Insurance Fund (NHIF).
Irregular write-offs of debts without County Assemblies’ approval and the overpricing of goods and services were also identified as corruption loopholes within the water companies.
“High percentages of Non-Revenue Water (NRW), some as high as 60 per cent above the allowable NRW ratio of less than 25 per cent as per the Water Service Regulatory Board (WASREB) Guidelines. This is attributable to illegal connections, water theft, bribery and corruption. Weak and ineffective enforcement leads to huge amounts of long outstanding uncollectable receivables as a result of corrupt practices.” Read the circular.
Consequently, governors have been directed to develop measures to address the loopholes with reports expected on the goals achieved.
“The Commission requires you 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 the 2023/2024 financial year.” Eacc directed.
