Robert Alai wants Nairobi Water company probed over financial impropriety

Nairobi City water and sewerage company Board Chairman Arnold Karanja and CEO Nahashon Muguna during a past Nairobi City County Assembly Water Committee.[ Samson wire Standard]

Kileleshwa Member of County Assembly Robert Alai now wants an investigation launched into the financial management practice of the Nairobi Water Service company.

In a letter addressed to the Directorate of Criminal Investigation and county clerk  Edward Gichana, Alai sought answers for alleged malpractice in the water sector.

“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 the letter in parts.

Alai claimed that the Water Services Company had accumulated a substantial debt of Sh 2.3 billion. 

He noted that there is a need for investigations into financial mismanagement and a lack of adherence to statutory obligations to uphold the integrity of public financial management.

“It has come to my attention that there are covert plans to borrow money from a commercial bank to settle the debt to LAPTRUST without the approval of the Nairobi City County Assembly. What assets are proposed to secure this loan, and how will public assets be protected?” he posed.

The MCA questioned the period in which the arrears accumulated further seeking clarification on how the interest compounding was used.

Section 142 of the County Government Act outlines that the county government may borrow only if the county assembly approves the borrowing

Alai has therefore asked for legal action to be taken against the alleged corruption in the water company.

“Given the gravity of this matter, I urge your office to initiate a thorough investigation and take appropriate legal action against any individuals found responsible for financial mismanagement,” he added.
The Nairobi City water and sewerage company CEO is long-time Nahashon Muguna and the Board is headed by Arnold Karanja who is barely less than two years in office.

 Muguna has served in the position for over two decades.