Embu Governor Under Fire: Millions Gone Missing
On Monday, July 17, Embu Governor Cecily Mbarire came under intensified scrutiny for the misappropriation of Ksh184 million at Embu Water and Sanitation Company Limited.
The Senate Committee on County Public Investments and Special Funds convened the county administrator after Auditor General Nancy Gathungu raised concerns regarding the use of public funds by the water company during the fiscal year 2020/21.
Referring to the report, the senators brought up several issues, including mismatched cash balances, incorrectly classified trade receivables, inconsistencies in the VAT ledger, and discrepancies between the computerized system and the financial statement balances.
In addition, the legislators brought up several issues highlighted by the audit, such as underreported water and wastewater balances, inaccurate customer and direct deposits, and unsubstantiated trade payables and accruals.
Senators also objected to unsupported administration costs and staff allowances, questionable board expenditures, and the absence of ownership documents for assets worth Kshs.184 million.
Additionally, concerns were expressed regarding the company’s tax arrears. By this, Mbarire was given the responsibility of guaranteeing total remittance compliance during her tenure, and the Auditor General’s office was requested to submit a follow-up report.
“The company’s difficulties continued. Insufficient documentation supporting an invoicing software upgrade and trade receivables adjustments, a budget deficit, and unresolved audit issues,” the Senate said in a statement.
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High levels of non-revenue water, a lack of staff diversity, underpayment of employees, unpaid corporate taxes, and the absence of risk management and ICT policies were also included on the list of discrepancies.
After examining the report and listening to the governor’s responses, the committee headed by Senator William Kisang of Elgeyo-Marakwet instructed Governor Mbarire to submit vital documents regarding the board’s establishment within sixty days.
Additionally, the committee instructed Mbarire to ensure the competence of the accounting and finance department personnel. Staff development was identified as a critical requirement.
In a similar vein, the committee mandated that all water companies’ ownership and directorship processes conform to the 2016 Water Act within sixty days.
Additionaly, the committee instructed Governor Mbarire to guarantee stricter management of the water company in the future.
In addition, the first-term governor was tasked with addressing governance concerns such as asset management, risk management, and internal controls.
The committee acknowledged the high levels of non-revenue water and directed the Auditor General to evaluate the efficacy of proposed corrective measures.
If found guilty of any irregularities, the governor and the directors of the water company face a maximum sanction of Ksh5 million or three years in prison or both.
Embu Governor Under Fire: Millions Gone Missing
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