Millions lost at Water ministry

The Water Ministry may have lost millions of shillings through unclear payments to contractors, a report by the Efficiency Monitoring Unit reveals.

Fresh details show that the ministry incurred unexplained debts, and the cash is suspected to have been lost at the National Water Conservation and Pipeline Corporation (NWCPC).

Confidential documents seen by the Daily Nation show that the parastatal paid two companies owned by a single person some Sh2.9 million for the ongoing construction of the Maruba Dam in Machakos District.

NWCPC came to the limelight late last year after it was reported to have incurred “mounting debts” that exceeded Sh750 million.

A fire at the corporation’s administration block on Dunga Road in Industrial Area on September 24 destroyed crucial documents, including payment vouchers and staff files. The fire was initially blamed on an electrical fault.

The two companies, Hardi and Kerim, were paid Sh1.25 million and Sh1.65 million respectively for the rehabilitation of Maruba Dam on two diverse dates.

On December 15, 2008, Hardi was paid to deliver a D8 Caterpillar to rehabilitate the dam, but some three days later, Kerim was paid to deliver the same machine for the same job.

The dam, which is due for completion this year, will cost Sh350 million and will have a capacity of 2.45 billion litres.

When contacted over the matter, Water and Irrigation assistant minister Mwangi Kiunjuri said investigations were still going on.

Despite the problems at the corporation, the ministry was going ahead with the construction of five dams countrywide at a cost of Sh9.4 billion.

“Investigations are still going on and those found to have embezzled the funds will be arrested,” Mr Kiunjuri told the Nation over the phone. “The new board is carrying on with investigations, but we have established that several millions have been lost at the parastatal.”

Mr Kiunjuri said a report by the Efficiency Monitoring Unit (EMU) in the Office of the Prime Minister that investigated the matter accuses the board of supervising the near-collapse of the corporation due to unexplained debts.

“This is proof that money has been lost here,” he said, adding: “In October last year, two employees of the corporation were suspended and three others asked by the board to step aside to pave the way for investigations on recommendations of the board. We are still carrying out more investigations.”

The EMU report recommended disciplinary action against the former managing director J.K. Muchemi; the head of procurement Ferdinand Musakhala; the head of finance Stanley Mombo Amuti and the head of internal audit Onguso.

Mr Muchemi and Mr Musakhala are accused of unilaterally awarding transport tenders without local purchase orders to companies belonging to directors of the corporation.