Senate Grills Governor Ayacko over Migori financial Malpractice

The Senate County Public Investments and Special Funds Committee has taken a firm stance against Migori Governor Ochilo Ayacko.

The senators examined the operations of the Migori County Water and Sanitation Company (MIWASCO) and addressed ongoing challenges facing the water supply schemes in Awendo, Kehancha, and Kegonga, which have been plagued by frequent technical breakdowns.

The audit disclosed a concerning 43.2 percent non-revenue water loss, amounting to an estimated Sh.16,562,004 in lost revenue for the county.

Addressing the audit queries by the OAG regarding the 2024/2025 financial year, it revealed a troubling pattern of technical insolvency and improper expenditure of customer funds.

In MIWASCO, the auditor general declared it technically insolvent due to a negative working capital of Sh. 33,393,761.

Additionally, Sh.10,454,246 in customer deposits were irregularly used to meet urgent financial obligations, leaving the deposit account with a mere Sh.50,986.

“You are effectively running a bankrupt utility on the backs of your customers,” Sessional Chair William Kisang stated.

“To dip into customer deposits to fund operations is not just poor management; it is a criminal breach of trust that must be met with full restitution.”

Committee Vice Chair and Migori Senator Eddy Oketch pressed the governor on the systematic underdevelopment of municipalities, noting that Kehancha Municipality suffered a 48 percent budget underfunding.

Senator Oketch also spoke painfully about MIWASCO staff who have been working without pay, appealing to the Governor to halt the “big plans” for projects and address the Sh.25,128,492 shillings in salary arrears that have been outstanding for over a year.

“Governor, you are suffocating these municipalities by withholding their development grants,” Senator Eddy Oketch noted.

Oketch continued, “You cannot claim to support devolution while the County Executive continues to carry out municipal functions and oversee their budgets from your office.”

According to Senator Peris Tobiko, employees would never show up for work if they knew they wouldn’t be compensated.

“Unless they are paying themselves, you are effectively encouraging them to steal from the company,” Senator Tobiko observed.

Governor Ayacko defended the administration, citing late exchequer releases as the cause of budget underperformance. Regarding MIWASCO, he claimed the irregular spending was a temporary measure.

“We have put in place a cloud-based collection system to reduce commercial losses and are progressively rehabilitating pipelines to curb physical losses,” Ayacko told the committee.