Murang’a assembly wants operations of water firm separated from subsidiary

Murang’a, Thursday, May 4, 2023

KNA by Bernard Munyao

Murang’a county assembly has adopted a report recommending that Murang’a Water and Sanitation Company (Muwasco) separates its water provision responsibility from that of their subsidiary, Fort Beverages Industries Limited (FBIL) that deals with bottled water.

In a report tabled by the chairperson of the assembly’s committee for public investment and accounts Alex Ndunda, the MCAs approved separation of functions between the two entities within 60 days.

The resolutions by the assembly were informed by an audit report, done by the Office of Auditor General on the water firm during the 2018/2019 financial year.

The audit report had raised queries that were not responded to by the water company management, prompting the county assembly to take up the matter and conduct their own investigations.

In its investigations, the committee discovered FBIL suffered from insufficient internal controls, poor book keeping, risk management and governance, weak human resource management and flagrant noncompliance.

“The subsidiary company that deals with bottling of water continues to operate without a human resource policy as the staff welfare is not guaranteed,” said Ndunda when he moved a motion at the assembly.

The report revealed that in 2018, FBIL paid salaries amounting to Sh3.5 million to permanent employees, while another Sh. 135,000 was paid to casual workers.

In the previous year, it had paid salaries to a tune of Sh. 4.1 million, while casuals got Sh. 55,800.

The assembly’s committee demanded a documented staff with an organization structure, and human resource policy of the FBIL

In terms of sales in the year under review, the firm made sales worth Sh. 8.9 million, compared to Sh. 5.2 million in 2017/2018 financial year, with operation expenses of Sh.12 million against the previous of Sh10.9.

The assembly compelled the county executive committee member (CEC) for water Engineer Mary Magochi to liaise with the county secretary and county attorney to expedite the separation of the companies within 60 days.

“The office of the county secretary, should ensure security of both the movable and immovable assets owned by Fort Beverage Industries limited,” said the investment committee chairman.  

The assembly also called on the county executive committee Member for finance Prof. Kiarie Mwaura to conduct further investigations into all the financial operations of the water bottling plant.

On the employees seconded to FBIL from Muwasco, the assembly ordered the county secretary to establish the actual number and salary scales to ensure compliance with the Salaries and Remuneration Commission (SRC) circulars and Public Finance Management (PFM) guidelines.

“Further the county secretary should furnish the assembly with a staff establishment for all the five water companies operating in the county and their subsidiaries,” the report recommended.

 Courtesy; K.N.A