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A Senate watchdog panel has criticised Governor Kawira Mwangaza for presiding over an ‘incompetent’ staff and ordered a forensic audit of the financial books of Meru Water and Sewerage Services.
The Senate County Public Investments and Special Funds committee read riot act to the county chief for incompetent staff who cannot prepare financial statements.
This emerged when Mwangaza appeared before the panel for questioning over the damning report for the water company for the financial year ended June 2021.
While asking the governor to put her house in order, the committee chaired by Vihiga Senator Godfrey Osotsi directed Auditor General Nancy Gathungu to further scrutinise the accounts of the firm.
The report revealed that the water utility firm is reeling in a debt of Sh80.1 million, with Sh71.4 million having fallen due between 1992 and 2005.
However, the firm said they can only recover Sh14 million, but has failed to provide evidence of efforts to recover or write off the overdue debts.
This is despite the managing director of the water firm saying they have a debt policy to take care of the debts.
“You cannot explain the recovery strategy for your non-doubtful debts,” Migori Senator Eddy Oketch said.
“From the documents presented, it seems the financial statement was prepared from a desktop. You cannot just input numbers to balance your books.”
Osotsi said, “I have noted issues of incompetence, too. Inaccuracies in audit matters and vouchers not complying with requirements are just some of them. Go clean your house.”
Elgeyo Marakwet Senator William Kisang called for the governor to carry out a serious audit of her staff to weed the firm of incompetent staff.
During the period under review, the water utility firm recorded a decline in turnover of Sh6.6 million as compared to the previous financial year, from Sh188.4 million to Sh181.8 million.
The water billed to the consumers during the period amounted to Sh141 million. However, this was outstripped by an expense of Sh193 million.
To remain afloat, the company received an injection of Sh28.3 million from the Water Sector Trust Fund for operations and Sh4.6 million for chemicals.
“The same debt issue has been recurring and has been raised as an audit query even in the financial year ended June 2020,” said the committee chairperson.
Mwangaza admitted to having incompetent staff but said her attempts to address it has drawn legal challenges.
“I agree we need to clean the house but such an attempt has seen 810 cases before court by county staff, who have sued us because of trying to clean the county government,” she said.
Kiambu Senator Karungo wa Thang’wa raised concerns over the water company still being registered under trustee shareholders with no representation from the county government.
“We need to make sure water companies revert to the counties. They have been operating in isolation, although water is a fully devolved function,” he said.
The committee directed the governor to dissolve the board of directors of the entity in line with the law and the county take ownership of the water company. BY THE STAR