Kileleshwa MCA Robert Alai has sounded the alarm over alleged financial irregularities at the Nairobi Water and Sewerage Company, a firm owned by the Nairobi County government.
In a series of documents posted on his X account, Alai highlighted several concerning issues at the company.
Alai revealed that the company has accumulated a staggering Sh2.3 billion debt, primarily due to the non-remittance of pension statutory deductions to the Local Authorities Pensions Trust (LAPTRUST), the main pension fund for the company’s employees.
He questioned the reasons behind the company’s failure to remit these deductions and demanded accountability from the responsible officers.
“We have a gang of very greedy individuals who are out to loot Nairobi. LAPFUND took over the assets of Nairobi City County for a song,” Alai’s statement read in part.
Concerns Over Illegal Borrowing Plans
Additionally, the documents revealed plans to borrow Ksh2.3 billion from Cooperative Bank to settle the debt owed to LAPTRUST.
Also Read: Nairobi Water Begins Dismantling Estate Pipes in Ongoing Crackdown
However, he noted that this proposal has not received the necessary approval from the Nairobi City County Assembly.
“LAPTRUST is also out for their kill, and they don’t care to explain themselves to the Nairobi City Country Assembly members.”
“Ksh 2.3 billion is going to be borrowed from Cooperative Bank to satisfy the interests of an individual,” said Alai.
Alai sought clarification on the assets proposed to secure this loan and emphasized the need to protect public assets.
Allegations Levelled Against the Company
The MCA claimed that the Assembly was being threatened and intimidated into approving the loan, which he believes is a criminal act against the people of Nairobi.
He further alleged that the county government plans to use the revenue of the Nairobi Water and Sewerage Company to secure this loan, which he believes is illegal and a serious violation of due process.
“The Assembly is being threatened and intimidated into passing this proposal to borrow a loan to quickly pay LAPTRUST while using the revenue of the Nairobi Water Company to secure the loan.”
“The Sakaja cabinet is committing crime against Nairobians. This paper was almost being sneaked into the assembly sometime back without the due process.”
Details of the Debt
Furthermore, the documents delved into the historical context of the debt, revealing that the debt originated from a brief transfer of the company’s retirement benefits scheme from LAPTRUST to Nairobi Water Provident Scheme.
“The debt was accruing a very high interest rate of 3% per month compounded, compared to the much lower annual interest rate that would be charged by a commercial bank.”
Also Read: Alai Lifts Lid on Mysterious Owners of Nairobi Revenue Systems
“The terms of repayment of a bank loan would also be more reasonable compared to the current terms where NCWSC was required to remit at least Khs. 3.5 million every working day.”
“This was having an adverse effect on the company’s cash flow since it was draining much of the revenues meant for operations.”
The MCA wants the company probed over these issues and calls for accountability from responsible officers.
“These documents reveal something sinister, which seems like LAPTRUST wants to commit serious fraud in Nairobi City County,” said Alai.
Follow our WhatsApp Channel for real-time news updates:
https://whatsapp.com/channel/0029VaB3k54HltYFiQ1f2i2C
