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{
    "id": 1490811,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1490811/?format=api",
    "text_counter": 126,
    "type": "speech",
    "speaker_name": "Sen. Osotsi",
    "speaker_title": "",
    "speaker": {
        "id": 13588,
        "legal_name": "Osotsi Godfrey Otieno",
        "slug": "osotsi-godfrey-otieno"
    },
    "content": "There are various reasons why we would have non-revenue water. One is the dilapidated infrastructure. Most of the water companies in the counties are relying on the old infrastructure. For example, in Nairobi City County, the water infrastructure that we have was set up by the colonial government many years back in 1905 and 1910. Surprisingly, successful governments have not taken the initiative to try and revamp this water infrastructure. This is why we have high non-revenue water in our counties. The other reasons are inaccurate metre reading and billing, illegal connections, and corruption. Though we are not discussing Nairobi City County, I will give an example of Nairobi water. The high non-revenue water is largely due to corruption. We have people who have been licensed to do that business, and they end up selling the same water that the residents are supposed to get. These have resulted in many water companies recording non-negative working capital. If you cannot account for a large percentage of your water, your balance sheet will be affected. This is why we have high negative working capital in this water company. Therefore, it raises concerns about the sustainability of these companies. In fact, most of these companies have a query about growing concern, meaning that the companies are basically insolvent, and there is no guarantee that they will exist going forward. Additionally, many of the water companies fail to fully transfer all their assets and liabilities from defunct county councils or local authorities, as well as regional water development agencies. You will find that the assets that these water companies are relying on are owned by defunct municipalities or local authorities. Others are actually in the hands of the regional Waterworks Development Agency. The Intergovernmental Relations Technical Committee (IGRTC) has been trying to make this arrangement, but it is taking too long. We have a number of properties, vehicles, land, and buildings, that are still in the hands of regional water works and the defunct local authorities. This is one area that we want to ask the Committee on Devolution and Intergovernmental Relations to move into and speed up the transfer of these assets to the water companies. The Committee further noted that the majority of the water companies had a challenge in the provision of documents to the Office of the Auditor General during the audit period. Mr. Temporary Speaker, Sir, this does not just affect water companies; it also affects other entities, including the executive arm of the county government. Where an audit process is concluded, an exit report is provided, the audit report is published, a certificate is issued, and then documents are generated just before they appear in the Senate. Moving forward, the County Public Investments and Special Funds Committee and County Public Accounts Committee will not allow documents that have not been examined by the Auditor General to be presented before us. We are not auditors. We cannot reopen audit at the point where we have invited the governors to appear before us and then they bring evidence after the conclusion of the audit process. We will be giving direction on this matter as a committee. This indicates a challenge. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
}