23 March 2012

Kenya: Gusii Water Revenue Drops By 50 Per Cent

Gusii Water and Sanitation Company revenue decreased from Sh10 million per month in the 2010/2011 financial year to Sh5 million, an audit report has revealed. The audit by the Kenya National Audit Office noted that monthly billing decreased from over Sh8 million to Sh5 million. During the audit it was further revealed that the company violated procurement rules and regulations.

The report dated February 29, 2012 and signed by David S Nyagaka for Auditor General said that the company failed to follow recruitment procedures because there was no advertisement and no interviews conducted in the recruitment done between June 30 and December last year. "Recruitments for the category of contracted labour on a one-year contract were done and 29 employees were recruited during the year as at June 30, 2011 and 22 others were recruited in the period 2011/2012 by December 2011 however procedures of the same were not clear since they were done without advertisement and interviews for the vacancies," the report said in part.

The audit report also discloses that travel and accommodation expenses for the managing director Engineer John Mogoba amounting to Sh295,400 had no supporting documents. It was established that four employees were paid Sh25,000, Sh23,500, Sh13,000 and Sh13,000 respectively for training and accommodation which either took a day or had no supporting documents.

The report reveals that some employees with higher qualifications, such as diplomas, received lower pay than less qualified colleagues with certificates. The report recommends that the company institute measures to recover money paid in contravention of government policy and develop a training policy. Engineer Mogoba was given seven days to respond to the issues raised in the audit report.

Copyright © 2012 The Star. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.