Kileleshwa Member of County Assembly, Robert Alai, has called for a comprehensive investigation into alleged financial mismanagement practices at the Nairobi Water Service company. In a letter addressed to the Directorate of Criminal Investigation and county clerk Edward Gichana, Alai raised concerns regarding significant irregularities in the company’s financial operations.
“It has come to my attention that there are significant financial irregularities concerning the non-remittance of pension statutory deductions to the Local Authorities Pensions Trust (LAPTRUST), the principal pension fund for the company’s employees. I urge your office to initiate a thorough investigation and take appropriate legal action against any individuals responsible for financial mismanagement,” read excerpts from Alai’s letter.
Alai highlighted that the Water Services Company has reportedly accumulated a substantial debt of Sh 2.3 billion, emphasizing the need for an investigation into financial mismanagement and a lack of adherence to statutory obligations to uphold public financial integrity.
Further concerns were raised regarding purported plans to borrow money from a commercial bank to settle the debt to LAPTRUST without the approval of the Nairobi City County Assembly. Alai sought clarification on the proposed assets to secure this loan and measures to safeguard public assets.
Questioning the timeline of the arrears accumulation and the compounding of interest, Alai referred to Section 142 of the County Government Act, which stipulates that borrowing by the county government requires approval from the county assembly.
Alai urged for decisive legal action against alleged corruption within the water company, emphasizing the gravity of the matter and the necessity to hold accountable any individuals found responsible for financial mismanagement.
The Nairobi City Water and Sewerage Company is currently led by long-serving CEO Nahashon Muguna, with Arnold Karanja heading the Board for nearly two years. Muguna has held the position for over two decades.
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