John Ngirachu
6 November 2008
Nairobi — The Nairobi City Water and Sewerage Company board of directors is expected to hold a meeting on Friday to discuss a debt that has caused a major clash between it and the council.
The debt, amounting to more than Sh1 billion, has been the subject of a court case that has spanned four years and seen an exchange of angry letters between Town Clerk John Gakuo and Mr Francis Mugo, the water company's managing director.
The council insists that the money should be paid by the company, which was incorporated in December 2003 to oversee all water and sanitation issues, previously under the council's Water Department.
Friday's meeting has been convened by the council's director of legal affairs, Ms Mary Ng'ethe, due to what she terms a refusal by the company secretary to call one in spite of repeated requests from Ms Ng'ethe.
Matters between the two might come to a head over the debt owed to a consultant hired in 1998 to carry out a survey for the second and third phase of the Nairobi Water Supply project.
A ruling made at the Milimani Commercial courts on July 28 said the council should pay Mr Wilfred Githua, of Githua and Associates, the amount, which was Sh50 million in 2004, and has now accumulated more than Sh859 million in interest.
The council appealed and enjoined the water company as a defendant.
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