Kericho Water and Sanitation Company Limited (Kewasco) is currently under the watchful eye of the Ethics and Anti-Corruption Commission (EACC) as allegations of financial misappropriation cast a shadow over the company. A recent audit report for the 2020/21 financial year, conducted by the Auditor-General, revealed that the company had incurred a staggering deficit of over Sh122.3 million, purportedly due to mismanagement and suspected bribery. This unfolding situation has drawn considerable attention, and EACC CEO Twalib Mbarak has confirmed that the investigation is in an advanced stage.
The EACC Investigation:
Twalib Mbarak, the CEO of the Ethics and Anti-Corruption Commission, officially confirmed the ongoing investigation, stating that, “The EACC confirms that it is investigating the matter, and upon conclusion, the outcome will inform appropriate action.” The impetus for the investigation came from the Senate County Public Investment and Special Funds Committee, which recommended the dismissal of Kibii Siele from his role as Managing Director (MD) of Kewasco on March 14, 2023. The committee cited allegations of mismanagement and abuse of office that had resulted in the company reporting losses for three consecutive years.
Calls for Change and Accountability:
The Senate committee went further to call for the removal of Kewasco’s board members and the thorough investigation of staff implicated in the alleged financial irregularities. Vihiga Senator Godfrey Osotsi urged Kericho Governor Dr. Erick Mutai to take swift action, stating that, “The county chief should reconstitute the board of the company and the entire workforce if the water utility firm is to be saved from sinking and start to make profits.” The Governor was also tasked with collaborating with the County Assembly to establish a proper legal framework for the company’s operations, as it had been operating without one.
Siele’s Defense:
Kibii Siele, the embattled MD, defended himself during the Senate committee’s inquiry. He explained that during the takeover of Tililbei Water and Sanitation Company (Tilwasco) in 2018, Kewasco assumed both assets and liabilities. Among these liabilities were monthly electricity bills, bulk water costs, and salary harmonization expenses. According to Siele, Tilwasco’s liability amounted to Sh90,565,225, with Bomet Water Company responsible for paying Sh25,073,379 as a share of the liabilities during the split. The County Government of Kericho was expected to cover the remaining Sh65.49 million, which has yet to be paid. However, his explanation did not appease the committee, leading to their recommendation for his removal.
Audit Report Highlights Financial Woes:
The audit report for the financial year 2020-2021 painted a grim financial picture for Kewasco. It revealed a loss of Sh10.14 million for the year, pushing the company’s accumulated negative retained earnings to Sh117.22 million as of June 30, 2021. The report highlighted that the company’s liabilities amounted to Sh346.79 million, surpassing its asset balance of Sh224.48 million, resulting in a negative working capital of Sh122.31 million. Auditor General Nancy Gathungu expressed doubts about the company’s ability to continue operations without support from creditors and the county government.
Legal Battle and Verdict Awaited:
In response to the county government’s decision to place him on administrative leave, Kibii Siele took legal action. On July 14, 2023, he challenged the decision in court. The Kericho court ruled in his favor, allowing him to remain in office until his case is heard and concluded. The court is scheduled to deliver its verdict on September 27, 2023, adding another layer of complexity to the unfolding drama at Kewasco.