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HomeLifestyleBusinessMCAs pile pressure on Kacwasco over whereabouts of Sh38.97 million

MCAs pile pressure on Kacwasco over whereabouts of Sh38.97 million

By Aclan Agesa, Kakamega

Kakamega County Assembly Public Accounts Committee (PAC) has demanded for responses to audit queries in relation to the Auditor General’s report for the financial year 2020/2021 by the Kakamega County Water and Sanitation Company (KACWASCO) management board.

Speaking during a consultative meeting between the committee and the company’s accounts department led by CPA William Barasa on Thursday, the Chairperson to the PAC, Mr Kevin Mahelo acknowledged the fact that the committee has had challenges with KACWASCO on issues raised and that some of them have been recurring in preceding financial years.

“We have had challenges with KACWASCO and there are key issues in 2020/2021 that have recurred,” noted Mahelo

According to the County Assembly Internal Auditor CPA Nelphat Mbati, the report from the Office of Auditor General for the year under review has highlighted audit issues that have been recurring.

Absorption rate for the company was reported to be at 113 per cent in the said financial year with a budgetary allocation of Sh333.66 million and actual expenditure being at Sh372.63 million.

The report further reveals that expenditure reports on the Board’s expenses were conflicting.

The Statement of Profit and Loss and other comprehensive income for instance reported that Sh3.63 had been expensed, while Expenditure schedules recorded Sh2.52 Million and Payment Vouchers had Sh1.02 Million.

PAC Committe chair Kevin Mahelo (right)

Under Trade and Other Receivables, Sh55.41 million had been written off as bad debts yet there were no supporting documents such as approvals, names and nature of debts. More so, other trade receivables were said not to been clearly explained.

The Committee noted this with a big concern and demanded for a clear information documentation that informed the waiving.

The Company’s budgeted revenue for the year under review had nose-dived from the budgeted target of Sh300 Million to Sh248.08 Million giving a shortfall of Sh51.92 million.

These together with other audit queries have prompted PAC to demand for answers from the Company’s Board.

 

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