Economy

Athi Water told to recover Sh2.6bn debt from Nairobi firm

Mr Adan Keynan, Public Investment Committee chairman. PHOTO | SALATON  NJAU
Mr Adan Keynan, Public Investment Committee chairman. PHOTO | SALATON NJAU 

Parliament has directed the Athi Water Services Board (AWSB) to take urgent steps to recover Sh2.6 billion debt from the Nairobi City Water and Sewerage Company (NCWSC).

The National Assembly’s Public Investment Committee (PIC) said the water agency has taken “inordinately long time” to pursue debts owed by the NCWSC.

“The committee recommends that the chief executive officer, AWSB aggressively pursues the recovery of Sh2,610,015,724 debt owed by the Nairobi City Water and Sewerage Company,” Adan Keynan said in the 21st report of PIC tabled in Parliament before the House went on an indefinite end-of term recess.

The committee scrutinised books of accounts for 41 State corporations tabled by Auditor-General Edward Ouko.

“The board has now entered into a Deed of Settlement (DoS) with the Nairobi City Water and Sewerage Company Limited. The DoS provides a plan to settle all the amounts outstanding to Athi Water Services Board,” said AWSB chief executive Malaquen Milgo.

Mr Ouko had raised the red flag on the board’s ability to recover long outstanding debts amounting to Sh3,665,312,331.

“Further, the financial position as at June 30, 2014 reflects debts amounting to Sh3,665,312,331 which includes an amount of Sh2,610,015,724 owing from the Nairobi City Water and Sewerage Company, an amount of Sh506,783 related to a long outstanding imprest from the Machakos District water officer and an amount of Sh600,000 owing from Umande Trust,” Mr Ouko said.

In his submissions to the committee, Mr Milgo said a letter had been written to the principal secretary, Ministry of Water and Irrigation to assist in the recovery of Sh506,783 issued to the former Machakos District water officer.

He said AWSB issued a demand note to Umande Trust who has since settled the Sh600,000 owed.