Economy

Munga, wa Iria fight over water firm spills to Senate

munga iria

Businessman Peter Munga and Murang’a governor Mwangi wa Iria. FILE PHOTO | NMG

The fight between tycoon Peter Munga and Murang’a governor Mwangi wa Iria over control of a water company has shifted to Parliament after World Bank withdrew a Sh130 million loan.

The Senate wants Mr Wa Iria to explain why he issued an executive order asking residents not to pay water bills to Murang’a Water and Sanitation Company (Muwesco) that Mr Munga chairs.

The chairman has sought court protection over his ouster in a plan triggered by the governor.

The wrangles has caught the attention of the World Bank, which has stopped the funding of water infrastructure upgrades in Murang’a.

“As a committee, we want Mr wa Iria to appear before us and explain the genesis of the fight between his government and Muwesco. We will also meet Mr Munga as we endeavour to seek a lasting solution,” said Mwangi Githiomi, who chairs the Lands, Environment and Natural Resources committee.

The two have had a long-running feud over management of Muwasco, which has seen the governor reverse approved water tariffs and block the construction of a water institute.

The governor accused the tycoon of bankrolling his opponent Moses Mwangi’s campaigns ahead of the August 2017 general elections and interfering with local politics.

Dr Mwangi was chief executive of Equatorial Nut Processors —which is owned by Mr Munga

Mr Munga also has shares worth billions of shillings in Britam Holdings Ltd, a stake in Equity Bank and owns Meru Ginneries, Pioneer Group of Schools as well as Equatorial Nut Processors Limited.

Water Cabinet Samson Chelugui said the World Bank (WB) has withdrawn the Sh130 million following wrangles. “The project was to start in January 2018,” he said.

The committee heard that Murang’a county government has interfered with water services to the residents of Murang’a through various actions.

“This is due to the misunderstanding over the control and management of water services provision and water utility assets between the County government and the water companies in the county,” Mr Chelugui said.

He cited a sitting of Murang'a County Assembly on September 17, 2015 which suspended tariff adjustment approved by Water Services Regulatory Board (Wasreb) and asked resident to ignore the new prices.

Mr Chelugui said in September, 2018, the county government pursued illegal actions, including the attempt to fire Muwesco company directors and staff in breach of law.

Other actions included disruption of the company’s activities such as tampering with pipelines and other water infrastructure.

Mr Chelugui said governor Wa Iria has misled the consumers into believing that water can be provided for free. “This is not attainable,” he said.