Oloolaiser in a mess, unable to supply water

While the company collects less than Ksh8 million per month, ironically the wage bill has shot up from Ksh5 million to over Ksh8 million after new staff were recruited in July 2021.

The high inflation rate has taken a toll on people’s livelihoods since most of them cannot even afford to buy basic commodities. The rock bottom economy has pushed everyone over the precipice as they fail to feed their families.

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By our reporter

Oloolaiser Water and Sewerage Company Limited (OWSC), the company mandated to supply clean water for consumption to Kajiado North residents, is on the verge of collapse due to appallingly poor management.

So irredeemable is the company that supplies water to Ngong, Ongata Rongai and Kiserian townships that insiders say staff have not been paid salaries for three months now. Pensions have not been paid since 2017 as debts pile ominously running into millions of shillings accumulated since 2018.

Acting Managing Director (MD) Peter Juma Ariero, who took over on July 1, 2022, has struggled to reduce the Kenya Power Limited Company (KPLC) bill from Ksh27 million to less than Ksh14 million.

P. O. Box 1234 -00511, Ongata Rongai.

While the company collects less than Ksh8 million per month, ironically the wage bill has shot up from Ksh5 million to over Ksh8 million after new staff were recruited in July 2021.

The Board’s plan to recruit a new MD was stopped by the courts pending hearing of a petition against the process that was used to shortlist candidates.

The financial report for the year ending June 30, 2019 presented to Parliament on February 23, 2022 revealed that the company was making losses.

Auditor General Nancy Gathungu pointed out that the financial position reflected current liabilities standing at Ksh160,990,067 against assets of Ksh56,262,137, resulting in a negative working capital of minus Ksh104,727,930. That’s a clear indication that the company is experiencing financial difficulties and is edging towards bankruptcy.

The statement of comprehensive income reflects a loss of Ksh25 million, which had increased by Ksh10 million from Ksh15 million as at 1 July 2018. The management did not disclose notes supporting the financial statements.

In the circumstances, the auditor general pointed out that the continued existence of the company is dependent on the support of donors and creditors.

She said the management did not disclose details of the donor account held at KCB with a balance of Ksh411,899, further adding that the deposit account reflected unreconciled balances.

The management had also made a cash withdrawal of Ksh1.8 million for repair and relocation of various pipes contrary to a resolution of Risk and Audit Committee that capped it at Ksh150,000.

The auditor also pointed out that the company had missing payment vouchers amounting to Ksh19 million and unsupported petty cash payment vouchers amounting to Ksh2 million.

Consequently, the accuracy, completeness and validity of expenditure totaling to Ksh21 million for the year ended June 30, 2019 could not be confirmed.

The statement of comparison of budget and actual amounts reflected final income budget and actual on comparable basis of Ksh197 million and Ksh156 million respectively, resulting in an under-collection of Ksh41 million, or 21per cent of the budget.

The Auditor General said the company failed to resolve issues raised under the 2019 financial report statements on lawfulness and effectiveness in use of public