Water company sinking with Sh411 million debt

[Photo: Courtesy]

A debt collector has been appointed to help recover Sh411 million from the Taita Taveta Water and Sewerage Company Ltd.

Governor Granton Samboja said the firm, which is charged with the responsibility of supplying water to residents, had failed to clear the debt owed to the Coast Water Services Board (CWSB), prompting the board to take the action.

The debt collector was charged with helping CWSB recover its money, sources told The Standard yesterday. 

The fate of workers at the water firm remained unknown. Mr Samboja predicted tough times ahead for the company that is controlled by the county administration.

"As it is now, the company cannot operate on its own. It is sad it has been placed under a debt collector but there was no other way. The debt collector is supposed to recover the money in the next 21 days," said the governor.

"There are hard times ahead for the water company, its staff and the county government. We are working on the best way to solve this problem,” said Samboja in Voi town yesterday when he donated 67 water tanks to health and learning institutions.

Water shortages

The 10,000-litre tanks are supposed to help alleviate water shortages, especially in the lowlands. 

The county water and irrigation executive, Gasper Kabaka, said the water tanks cost Sh9 million. Another Sh10 million has been set aside to purchase more tanks.

Betica Company, in an audit report, said the water firm was on its deathbed because of huge pending bills.

The report, presented to the governor, noted that Taita Taveta Water and Sewerage Company Ltd (Tavevo) could not pay for water supplied by CWSB.

The audit showed that the firm did not have sufficient funds to meet its financial obligations, including operational costs.

Samboja said he had also ordered an independent forensic audit on the ailing water firm.

"The huge volumes of unaccounted for water is negatively impacting the county administration's profits and its long-term sustainability if not checked,” noted Samboja. 

The audit cited mismanagement and abuse of office by Tavevo officials as some of the causes of the company's problems.

The governor said the names of corrupt individuals and their associates who have run down the company would soon be made public.

“The sad part is Tavevo does not even know the people who owe it money. In some cases, they supplied water but money collected ended up in individuals' pockets,” said the governor.

Samboja has called on Tavevo staff to help explain what transpired at the company.