Senate committee orders probe into books of Wajir water firm

 

A senate committee has directed the Ethics and Anti-Corruption Commission to carry out investigations into the operations of Wajir Water and Sewerage Company from 2018 to 2020.

The interim recommendation of the County Public Investment and Special Funds Committee further said EACC should file a preliminary report within 60 days.

Committee chair Godfrey Osotsi further directed that the Office of the Auditor General undertakes a special audit into the operations of the company during the 2020/2021 Financial Year and file a report within 60 days.

“We also want the governor of Wajir County to conduct a human resource audit of the company and give us a report of the measures being taken to have a lean and effective staff at the firm,” he stated.

Osotsi also asked Governor Ahmed Abdullahi to conduct a mapping of all assets of the water company.

Abdullahi, who had appeared before the committee, said he was comfortable with all the recommendations by the senators.

“The recommendations point to what we were intending to do to address the woes facing the company,” he added.

Auditor General Nancy Gathungu rendered an adverse opinion on the financial statements of Wajir Water and Sewerage Company Limited in her report for the 2020-2021 financial year.

The auditor was unable to obtain sufficient information to warrant an opinion.

The committee further directed the county to provide evidence of the closure of all bank accounts of the company within 14 days.

“The company should also provide information on grants received by the company within 14 days,” Osotsi added.

He directed the governor to finalise the constitution of the board of directors within 30 days.

In her report, Gathungu said a review of records revealed that the company was incorporated in 2013.

“However, management had not submitted for audit the financial statements for the financial years ended 30 June 2016, 2017, 2018, 2019 and 2020,” she said.

This was in contravention of Article 229(4) of the Constitution of Kenya, and Section 68(2)(k) of the Public Finance Management Act, 2012.

She further noted financial statements for the year ended June 30, 2021, were submitted to the Auditor-General on December 16, 2021 (two and half months after the deadline).

Wajir Water and Sewerage Company was incorporated in 2013 under the Companies Act 2002 (Cap. 486).

The principal activities of the entity is to provide quality, affordable water, and sanitation services to the residents of Wajir County.    BY THE STAR