13 Nov 2024 in Senate:
There was the matter of late submission of documents, which is guided by Section 62 of the Public Audit Act. This has become a problem, where certificates for audit reports are issued by the Office of the Auditor General (OAG). Then when they appear before Senate committees of County Public Investments and Special Funds Committee (CPISF) and County Public Accounts Committee (CPAC), they carry big files of evidence. Most of those documents are questionable. So, on the matter of late submission of documents, we have agreed that moving forward, we will not accept evidence in the form of documents which ...
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13 Nov 2024 in Senate:
There was also the issue of how to mitigate the high non-revenue, which in most counties is beyond 25 per cent. Members felt that there is a need to automate the metering system by having smart metres, and also the need to apply Geographic Information System (GIS) solutions in terms of managing water networks.
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13 Nov 2024 in Senate:
There was also the common problem of errors in financial statements, which are attributed to capacity issues and training within the Finance Department. We have the Public Sector Accounting Standards Board (PSASB) that prescribes the format in which the financial statements should be submitted. We have recommended that moving forward, all counties must align their financial statements to the PSASB.
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13 Nov 2024 in Senate:
There was also the common issue of non-remittance of statutory deductions by these companies. This is a compliance issue and an offence. We have directed the counties involved to make sure that they submit their financial statements on time. The matter of the transfer of assets and liabilities for these water companies was also a major issue. Inter-Governmental Relations Technical Committee (IGRTC)) has been handling this matter but it is taking too long. I think it is important for these water companies to have their assets in their name so that their financial statements are not overstated.
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13 Nov 2024 in Senate:
There was also the matter of declustering and clustering, which we reported that Bungoma and Trans Nzoia are now in the process of completing their declustering process so that they have separate water companies. The same applies to Kisii and Nyamira. The electronic version of the Senate Hansard Report is for information purposes only.A certified version of this Report can be obtained from the Director, Hansard and Audio Services,Senate.
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13 Nov 2024 in Senate:
The specific issues that came up, for example, for Bomet County, was the matter of a project by the name Kamureito Water Supply, which we referred to the Ethics and Anticorruption Commission (EACC) for investigation.
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13 Nov 2024 in Senate:
There was also a serious problem with unremitted statutory deductions amounting to about Kshs12.9 million. The issue of accuracy and recoverability of outstanding trade receivables amounting to Kshs219 million. This matter, again, has been referred to EACC for further investigation, because we cannot have this huge amount of money not recovered, and whose supporting documents are not available.
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13 Nov 2024 in Senate:
The matter of the stalled Chebunyo-Siongiroi Water Project, which has stalled for many years amounting to Kshs17.5 million, again, this matter was referred to EACC. Gusii Water and Sanitation Company Limited which serves Kisii and Nyamira counties had a whopping Kshs39.6 million as trade payables. Again, we recommended that these trade payables be reduced. Non-revenue water in this particular company is one of the highest at 46 per cent with a wage bill of 69 per cent. Mr. Speaker, Sir, Kisumu Water and Sanitation Company Limited is one of the most successful water companies. That aside, we had issues with ...
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13 Nov 2024 in Senate:
Before, these water companies were either owned by groups in our counties or people who were not in the county governments. Through the intervention of the committee, I am happy to report that most counties have now complied. I am also happy to note that one of the water companies that was being run by private individuals in Murang’a, that is Murang’a Water and Sanitation Company, which is one of the most successful water companies, has now been reverted fully to the county government of Murang’a. There are many other cases. I know there are cross-cutting issues that we identified. ...
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13 Nov 2024 in Senate:
You are asking me about Garissa County. That is in a different report which is coming.
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