A leadership row is simmering at the Nairobi City Water and Sewerage Company (NCWSC) after the board of directors controversially extended the tenure of Managing Director Engineer Nahashon Muguna’s tenure despite having attained the mandatory retirement age of 60 years.
Consequently, workers’ body, the Kenya Union of Water and Sewerage Employees (Kuwase) have threatened to down tools over the new development.
Kuwase said that the board approved Muguna’s contract extension during a meeting on November 6, 2024, in violation of the Public Service Act, which mandates the retirement of government employees over 60 years old.
They also cited claims of mismanagement and embezzlement of funds at the company.
The workers have now demanded the intervention of the Nairobi County Assembly and Head of Public Service, Felix Koskei to have Muguna’s term extension revoked.
Muguna was appointed as the substantive MD by the NCWSC board in May 2020.
Also, he served as the acting MD of the Nairobi City Water and Sewerage Company for three years since 2017 until 2020 May when he was confirmed.
His tenure was initially set to expire in nine months, but he sought an extension.
Previously, Muguna served as the NCWSC Technical Director.
Kuwase, through their General Secretary Elijah Awach said the union has formally raised its concerns with several authorities, including the Ethics and Anti-Corruption Commission (Eacc), Nairobi Governor Johnson Sakaja, and the County Assembly.
“As a partner and key stakeholder, and on behalf of all workers at the company, we are opposed to the extension of contracts as there are many qualified people within and outside the company who can steer NCWSC to greater heights.” Awach said.
The union’s Branch Secretary, Wycliffe Onditi, further criticised the Nairobi water board’s decision to extend Muguna’s term, claiming that the board lacks the authority to make such a decision as none of its members are permanent employees of the water company.
“The MD has already attained the age of 60 years and he should proceed on terminal leave. Why should he be in office when other people can take over the management of the company? The board is saying he is the only one with institutional memory to run the company. We are not going to tolerate this and he should hand over and leave.” Onditi said.
The union has warned that it will resist any efforts by Muguna to remain in the position.
According to the Public Service Act, the CEO or managing director of a state corporation seeking reappointment must express their interest in writing at least six months before the end of their term.
The board must then evaluate their performance and submit a report to the appointing authority with a recommendation on whether to renew or terminate the contract.
In cases where a renewal is not recommended, the CEO is required to go on terminal leave six months before their term ends to allow for the recruitment of a new leader.
Last week, both Kuwase leadership and Muguna appeared before the County Assembly’s Water Committee to discuss the issue.
However, the session was adjourned as the committee requested more time to review documents provided by the MD.
The Nairobi County Assembly Water Committee chairperson Kennedy Oyugi noted that the committee needed additional time to go through the materials.
Nairobi County Assembly Majority Leader Peter Imwatok has also voiced concerns, asserting that Muguna should retire to avoid promoting corruption.
“We are nurturing corruption when we allow our employees not to proceed on leave. Muguna has stayed in the position for too long and should do the honourable thing and retire.” Imwatok said.
However, Muguna’s tenure has been marred by controversy ranging from claims of corruption and embezzlement of taxpayers’ money.
Last year, the Senate launched probe against NCWSC over unaccounted Sh2.48billion that it lost water valued at Sh2.48billion during the Covid-19 period.
A report by Auditor General Nancy Gathungu disclosed that the company supplied water valued at Sh2.5billion but only declared Sh16million.
Further, in 2021 while Muguna was in office as a substantive MD, NCWSC came to the limelight over alleged blatant embezzlement of public funds through manipulation of financial IT systems.
The company’s management could also not provide work tickets to show how the water was supplied to the informal settlements.
According to the report, there were 22 water bowsers from the defunct Nairobi Metropolitan Services (NMS) which were supplying water at a cost of Sh2,500 and Sh5,000 for 8,000 and 16,000 litres truck capacity, respectively.
However, even when Nairobi governor Johnson Sakaja and the firm’s Managing Director Nahashon Muguna appeared before the Senate County Public Investment and Special Funds Committee last year, no substantial clarity was provided over the matter.
Through a stealth scheme to evade possible detection, the officer attached to the Databases Administration Manager’s (DBM) office is reportedly said to fleece in excess of sh250,000-every time gratuity payments are advanced from the public coffers.
In what points to an organised grand theft, the added “foreign” figure is not reflected in the pay slip despite glaring discrepancies of Gross Pay variations.
However, auditors have been able to flag the erased files.
“This is not new. It is something that he has been doing especially for the last two years. At least Sh10million has been swindled through this scheme.” Our source in the know intimated to The Informer Media Group.
Further, NCWSC is not new to controversy.
The water company has been dogged by financial scandals ranging from exaggerated water billings, stealing of company assets, cooking of books of accounts and poor maintainace of sewer system.
There are fears that 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.
For instance, NCWSC has been dogged by claims of poor meter readings, exaggerated water bills, 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 defunct City Council of Nairobi were not documented and revenue reserve balance of Sh199.4 million including Sh697million transferred from the capital reserves in 2007/2008.
Also, there reports that at least 10 acres of the firm’s land in Karen has been hive off with only an office sitting in less an acre.
The current board of directors of NCWSC is chaired by lawyer Arnold Karanja.
Last year, the Nairobi County Assembly Sectoral Committee on Water and Sanitation questioned the criteria used to pick the current directors.
Karanja was reportedly elected the chairman of NCWSC new management Board of directors at the inaugural meeting of the members who were named by governor Sakaja in April 2023.
The other members of the board of management are the Vice Chairperson, Beryl Okumu, Emmah Mukuhi Muthoni (Finance Committee), Cedric Alaro (Technical, Commercial and ICT Committee), Rose Esther Wamuiya (Audit, Risk and Governance), Johnstone Mukabwa (Human Resource, Administration and Communication) and Robow Mohamed Hassan.
