By Antynet Ford
Nairobi Water and Sewerage Company (NWSC) is on the spot over alleged financial irregularities, The Informer Media Group can authoritatively reveal.
Documents seen by Corporate Watch highlight several concerns over the water company.
They indicate that the company has accumulated a staggering Sh2.3 billion debt, primarily due to the non-remittance of pension statutory deductions to the Local Authorities Pensions Trust (LAPTRUST), the main pension fund for the company’s employees.
Kileleshwa Member of County Assembly Robert Alai has raised questions on why the reasons behind the company’s failure to remit these deductions and demanded accountability from the responsible officers calling the Directorate of Criminal Investigations (DCI) to conduct investigations.
According to Alai, NWSC has individuals who have been looting the county which resulted to LAPFUND taking over the water company assets.
“We have a gang of very greedy individuals who are out to loot Nairobi. LAPFUND took over the assets of Nairobi City County for a song.” Alai stated.
Alai noted that this proposal to have the matter investigated by the Nairobi City County Assembly has not received the necessary approval.
The legislator has since accused the authority of not caring to appear before the assembly and explain themselves.
The documents reveal that NWSC plans to borrow Sh 2.3 billion from the Co-operative Bank to settle the debts.
“LAPTRUST is also out for their kill, and they don’t care to explain themselves to the Nairobi City Country Assembly members. Sh2.3 billion is going to be borrowed from Cooperative Bank to satisfy the interests of an individual.” Alai to the Informer Media Group.
The vocal MCA sought clarification on the assets proposed to secure this loan and emphasized the need to protect public assets.
He claimed that the Assembly was being threatened and intimidated into approving the loan, which he believes is a criminal act against the people of Nairobi hence writing to the DCI for quick action.
Alai further alleged that the county government plans to use the revenue of the Nairobi Water and Sewerage Company to secure this loan, which he believes is illegal and a serious violation of due process.
“The Assembly is being threatened and intimidated into passing this proposal to borrow a loan to quickly pay LAPTRUST while using the revenue of the Nairobi Water Company to secure the loan. The Sakaja cabinet is committing crimes against Nairobians. This paper was almost being sneaked into the assembly sometime back without the due process.” He said.
The documents delved into the historical context of the debt, revealing that the debt originated from a brief transfer of the company’s retirement benefits scheme from LAPTRUST to the Nairobi Water Provident Scheme.
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“The debt was accruing a very high interest rate of 3% per month compounded, compared to the much lower annual interest rate that would be charged by a commercial bank. The terms of repayment of a bank loan would also be more reasonable compared to the current terms where NCWSC was required to remit at least Sh 3.5 million every working day.” The documents read in part.
The legislator wants the company probed over these issues and calls for accountability from responsible officers.
“These documents reveal something sinister, which seems like LAPTRUST wants to commit serious fraud in Nairobi City County.” Alai said.
The Corporate Watch contacted Nairobi Water and Sewerage Company Managing Director Nashon Muguna seeking a right of reply and shedding of more light but at the time of broadcast, he had not replied to us.
