Tag: Procurement Manager

  • Dark Past Haunts Nairobi Water Manager As He Fights Transfer

    Dark Past Haunts Nairobi Water Manager As He Fights Transfer

    The dark past of Benedict Kiema Kavua the Procurement Manager of Nairobi City Water and Sewerage Company has caught up with him. He was recently transferred to a different department but rushed to the employment court to reverse the decision making many wonder as to why he would put such a spirited fight against the move yet his new station is not that far.

    Word is Kiema is buying time to to coverup suspected corrupt dealings that he allegedly got into while in office. City Hall insiders also claim that the besieged manager has been in the radar of investigative agencies including Directorate of Criminal Investigations (DCI) and the Ethics and Anti-Corruption Commission (EACC).

    In a quick rejoinder, Nahashon Muguna, the city water company’s managing director moved to court to stop Kiema’s application saying he had obtained the order blocking his transfer last month by concealing material facts from the court.

    Mr Muguna said due to the nature of the company’s mandate and as a matter of policy, it is expected that employees may be transferred or reassigned roles in order to achieve efficiency and optimum performance.

    “It is therefore clear that he (Mr Kavua) did not come to court with clean hands and in a bid to obtain the orders he sought, deliberately failed to disclose this aspect which is material to the matters in question,” Mr Muguna said in a statement filed in court.

    Speaking to Kenya Insights, an insider says Kiema’s fears are based on his past questionable deals and that an audit of the accounting books and records would expose him and also the irregular procurement practices he oversaw as supply chain manager.

    “Kiema is literally in trouble since a report on all requests for quotations is required on RFQ register (where bidders sign as they pick), appointments by the MD for opening and evaluation committee, opening minutes, evaluation minutes’ copies of LPOs and professional opinions.” said the source.

    Auditor Report

    In the auditor general’s report released last year, Nairobi Water lost over Sh10 billion in the financial year ended June 2022 due to faulty water meters, unreconciled financial statements and allowances paid to its staff.

    Auditor-General Nancy Gathungu said the utility firm, which supplies the commodity to city residents, sold a total of 96,404,533 cubic meters of water during the year under review.

    This translated to Sh5.63 billion of income using the rate of Sh58.5 per cubic meter. However, the water firm declared an operating income of Sh4.79 billion leading to an undeclared income of Sh848 million.

    Ms Gathungu also observed in the report that the water firm failed to declare an extra Sh200 million that was obtained as levy water and sewerage services levy to the customers.

    During the year under review, the water firm produced 192,787, 851 cubic meters of treated water but its records understated the volume of water produced by indicating it was 178,526, 912 cubic meters.

    This, the auditor general observed, led to a loss of Sh834 million as projected revenue. The report also indicates that the water firm lost up to 50 percent of its projected water sales, which is way above the 25 percent of the non-revenue water threshold that is allowed by the Water Services Regulatory Board.

    Although the official company records indicate the firm produced 178,526, 912 cubic meters of water only 96,404, 533 cubic meters were billed meaning that it lost a Sh9.8 billion according to the auditor general.

    The report notes that the volumes lost are inclusive of the water and sewer charges at the rate of Sh102.375 per cubic meter.

    Desperation

    Word is the embattled manager is disparately asking for money from his friendly suppliers to ‘fight cartels hell bent to oust me from City Hall’ the money he says is needed to ‘handle’ the big case he’s having in court, how he plans to handle it remains unknown.

    In his objection, Mr Muguna told the court company has the power to reorganize the company to improve productivity.

    He said Mr Kavua had been in the said management position since 2012 and therefore had 12 years of management experience.

    “It is therefore appropriate that his experience in the company should indeed be utilised in other departments and this is in line with best practices where movement of people has yielded better results and eradicated complacency,” he said.

    The Managing Director said that there was no arbitrariness or malice in the changes made. Furthermore, there is no major change of location that would cause prejudice if Mr Kavua reported to his new position immediately.

    Mr Muguna said in the contract signed in September 2010, it was clear to Mr Kavua that he would be required to serve the company in any part of the county.

    The managing director said Mr Kavua did not protest two years ago when he was transferred from his previous post and place of work to the head office to serve as supply chain manager.

    He said Mr Kavua did not protest but reported to the new post and reported on the same day he signed the letter.

    “So I am very surprised to see in his application before this court that he is complaining that he was not given adequate notice when in this case he is not even moving from the head office yet when he moved from the Western Region to the head office he did not protest and in fact reported on the same day the letter was given to him,” he said.

    Mr Muguna revealed that the company currently has 33 management positions, of which 28 are substantively filled and another five are in acting capacity. “This shows that it is important to make transfers when deemed necessary,” he said.

  • Court Freezes Properties Worth Sh93M Belonging To KeRRA Manager And Others Suspected To Be Proceeds Of Crime

    Court Freezes Properties Worth Sh93M Belonging To KeRRA Manager And Others Suspected To Be Proceeds Of Crime

    The High Court has frozen more than 30 properties and over Sh93 million belonging to five woman and a company, which a state agency suspects are proceeds of crime.

    The money in three accounts belong to Esther Wagio Njunge, Kenya Rural Roads Authority (KeRRA) Procurement Manager Margaret Wanja Muthui and Light House Trading Company Ltd suspected to be proceeds of crime.

    The funds include Sh74. 7 million deposited in a fixed deposit account of Wagio at Cooperative bank, a further Sh13.9 million in the name of Muthui’s account and Sh4.8 million deposited in an account registered in the name of Light House Trading Company Ltd.

    Justice James Wakiaga barred the two woman and the company from transferring the funds, pending the determination of a case filed by Assets Recovery Agency (ARA).

    The judge also barred the two women, the company and three other woman from selling or transferring 11 apartments in Kileleshwa, two flats holding 11 units each in Ruaka, a house in Nairobi and a parcel of land in Riruta in Dagoretti sub-county.

    “An order of preservation be and is hereby granted prohibiting the Respondents or their employees, agents, servants or any other persons acting on their behalf from selling, transferring, charging or dealing in any manner with the following apartments erected on L.R NO. 209/21878(Origina1 No. 209/7752), Kileleshwa, Nairobi (Signature Apartments), ” ordered Judge Wakiaga.

    According to ARA, most of the apartments were purchased in 2019, when Central Bank of Kenya announcement demonitisation process and unveiled new notes. The apartments were purchased in cash for Sh264 million, on different dates in a period of three months between June and September 2019.

    Other than Wagio and Muthui, some of the apartments are registered in the names of Mercy Wambui Nyambura, Cynthia Wanjiku Nyambura and Grace Nyambura Ndiritu.

    The court directed the rental income, benefit, profit accruing from the targeted properties be deposited in the ARA’s Account held at Kenya Commercial Bank, pending the hearing and determination of intended forfeiture application.

    Justice Wakiaga ordered Chief Land Registrar to register caveats against the records of each of the apartments and properties specified in order.

    The women were directed to surrender to the ARA the original land titles documents, leases or registration documents for the following assets within seven days.

    In the petition certified as urgent, ARA said investigations revealed that the three accounts had received suspicious funds through a scheme of money laundering which funds are believed to be illicit or proceeds of crime.

    It is alleged that Muthui used the illicit money to buy eleven apartments in cash from Ceytun East Africa Limited which were then registered in the names of Light House Trading Company Ltd, Mercy Nyambura and Cynthia Nyambura.

    Investigations established that paid a total of Sh264, 500.000 million in cash for the eleven apartments which were registered under the names Light House Trading Company Ltd, Mercy Nyambura and Cynthia Nyambura in a scheme of concealing ownership.