Senators order probe into ownership of Murang'a water firms
Murang'a Governor Irungu Kang'ata while appearing before the Senate County Public Accounts (CPA) Committee on March 21, 2023, over queries in the Auditor General report for Muranga County County Executive.
A Senate watchdog committee has directed the anti-graft agency to launch investigations into the controversy surrounding the ownership and operations of water companies in Murang'a County.
This comes after it emerged that four out of five of the utility firms are in private hands rather than owned by the county government as required by law.
Consequently, the Senate County Public Investments and Special Funds Committee has directed the Ethics and Ant-corruption Commission (EACC) to start investigations into the ownership and operations of the water firms and make a report to the committee within 30 days.
Further, the Vihiga Senator Godfrey Osotsi-led committee directed that the county government should ensure ownership of the contentious firms are fully reverted to the county within a month.
Appearing before the committee, Murang’a Governor Irungu Kang’ata said that, of the five water companies operating in Murang’a County, only one is under the ownership of the county government. He said the county has 4,997 shares in Gatanga Water and Sanitation Company with the remaining three distributed to three directors of the firm.
The other four are Gatamathi Water and Sanitation Company, Murang’a Water and Sanitation Company (Muwasco), Murang’a South Water and Sanitation Company (Muswasco) and Murang’a West Water and Sanitation Company (MUWWSCO).
The committee was told that, out of 5,000 shares available at Muswasco, the county government owns only one share while 4,999 shares are in the hands of private individuals. Muwasco, however, has no shares but is registered by guarantee with the guarantors being the different directors represented there.
The same obtains for MUWWSCO, which is also registered by guarantee and is controlled by private stakeholders and not the county government.
Governor Kang’ata said the four water firms have been reluctant to transfer their ownership to the county government even after writing a letter to their managing directors.
The administration, the governor said, wrote to the four firms on April 11 to ensure they complete the transfer of ownership on or before June 30, 2023 but the response has been lukewarm.
90-day timeline
The Water Services Regulatory Board (Wasreb) had on April 6 also given all water service providers 90 days to ensure county governments are the owners and shareholders of the firms.
The county chief told the committee that his predecessor, Mr Mwangi wa Iria, also faced the same frustrations when he tried to have the companies revert to the county government. He said the matter has been raised with President William Ruto, his deputy Rigathi Gachagua and the Water principal secretary.
“There is a lot of impunity going on. People have been sponsored to go to court to stay the Wasreb circular. Even the orders given now will be resisted by the same people to stop the process,” he said.
Murang’a Senator Joe Nyutu said the MDs are reluctant to transfer the companies’ ownership to the county government.
“They have held meetings and the stakeholders have been adamant that they will not transfer the ownership to the county government,” he added.
“We need justice for Murang’a people. We cannot have one person holding a county at ransom,” said Kiambu Senator Karungo Thang’wa.
Migori Senator Eddy Oketch called on Mr Kang’ata to fire the four MDs and then implement the transfer of ownership.
MUWWSCO boss Ephantus Maina said they have communicated a roadmap to Wasreb to comply with their guidelines.
Muswasco MD Mary Nyaga said they have written to Tana Water Works Development Agency to give authority to transfer the shares to the county government but are yet to receive a response. Gatanga Water MD John Kiarie said the process of transition was completed on March 28, 2023.
Kisumu Senator Prof Tom Ojienda said the governor has an obligation to establish who runs the companies.
“We want to know who controls Muwasco. The law is quite clear and we want to know why they are operating outside the law,” he said.
Asked by Mr Osotsi the steps he has taken to ensure the ownership of the company is transferred to the county government, Muwasco MD Daniel Ng’ang’a said they are in the process of compliance.
“The issue of transfer of ownership is vested with the water works agency and it is ongoing. It is not in our scope as water service providers,” he said.
