The struggling Malindi Water and Sewerage Company has plunged further in the deep waters of financial malaise after directors abused irregularly awarded themselves huge sitting allowances.
According to the latest audit report on the water company’s financial status in the year ending June 30 2017 the directors received Sh5.9 million as emoluments, including Sh2.3 million in sitting allowances.
Four of the directors, payment register and vouchers availed to the Auditor General show, were irregularly paid Sh1,672,000 as purported sitting allowances for attending board meetings even after their terms had lapsed.
“According to the company memorandum and article of association section 58(1) (I) and (ii), one third of the directors are supposed to retire annually in every annual general meeting of the board and new ones appointed,” says the report in part.
The report pointed out that the directors, led by the board’s chair Christine Karani, had already served the company for more than two terms and as such were in office illegally and irregularly paid allowances. Others indicted were Stanley Chai, Felix Charo and Benjamin Shollo
The audit report further pinpoints two other directors Ben Kai and Samuel Kombe, appointed to the board by the Kilifi county government, of having been irregularly paid Sh620,000 as sitting allowance for attending board meetings yet they were employees of the county government.
The Auditor General found that payments were made in cash instead of cheque or bank transfer.
The debt riddled company allocated Sh99,361,040 including the directors’ emoluments amounting Sh5,974,373 as operational costs.
The company has been facing debts running into millions of shillings including Sh376,374,074 owed to Coast Water Services Board for water supplied.
When reached for comment, managing director Gerald Mwambire could not explain the Auditor General’s queries