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The Ethics and Anti-Corruption Commission (EACC) has raised concern over malpractices in the management of water and sanitation companies.

EACC chief executive Twalib Mbarak said the malpractices had led to huge losses and negative working capital or insolvency.

He urged governors, in collaboration with water companies management, to put in place systems and procedures to streamline operations

“Water and sanitation companies are county governments investments charged with the responsibility of production and distribution of clean and safe drinking water. These companies are financed through revenue collected from water sales, other services and grants from the respective county governments,” said Mbarak, in a letter to governors dated June 22.

“The Commission requires you (Governors) to submit a mitigation plan for addressing the malpractices and thereafter provide quarterly implementation progress reports for review and monitoring by the Commission effective from the first quarter of 2023/2024 Financial Year,” he added.

Some of the malpractices that the EACC flagged included embezzlement of statutory deductions and customers metre deposits resulting in huge amounts of long pending bills.
He said there had been irregular payment of directors’ emoluments without supporting documents contrary to Regulation 104 (1) of the Public Finance Management Regulations (County Government) 2015.

Mbarak also faulted irregular recruitment of staff without involving the County Public Service Boards contrary to Section 63 of the County Government Act 2012.
Other issues that the EACC raised include lack of asset and liability management policy, risk management policy and fraud mechanisms as well as failure to comply with public procurement laws and regulations.
“There has been lack of oversight mechanisms such as internal audit functions and internal audit committees,” he said.
EACC also raised concern about high percentages of non-revenue water (NRW), some as high as 60 per cent above the allowable 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.