Nairobi Metropolis Water and Sewerage Firm continues to lose tens of millions of shillings attributable to a defective water billing system regardless of guarantees for an improve.
The utility agency misplaced a whopping Sh13.6 million in solely a yr within the monetary yr ending June 30, 2018 because of the defective system.
In accordance with a report by Nairobi County Meeting Public Investments Committee (PIC), Nairobi Water misplaced the tens of millions within the interval between July, 2017 and June, 2018 by way of the corporate’s buyer administration system ‘Oracle Database Programme’ often known as ‘sequence’.
The committee chaired by Higher Savanna MCA Stazo Omung’ala additionally revealed that there have been a number of gaps within the income assortment database, that means the water agency couldn’t account for data and the income collected within the yr beneath evaluation.
The report revealed that in 2017, the system couldn’t account for Sh1.three million in income for the month of July, August (Sh845,199), September (Sh1.02 million), October (Sh978,736), November (Sh951,760) and Sh1.22 million within the month of December.
In 2018, Sh1.three million couldn’t be accounted for in January, February (Sh1.17 million), March (Sh1.three million), April (Sh1.14 million), May (Sh1.5 million), and June (Sh1.06 million) bringing the entire to Sh13.67 million for the 2017/18 fiscal yr.
“The company is losing huge financial resources and the committee had noted that is a deliberate act. The use of the program, also known as sequence, was seen as the prime cause for variance in results as explained by the management,” learn the report partly.
The committee was contemplating the report of the Auditor-Basic on the monetary statements for the corporate for the yr ended June 2018.
Nevertheless, Nairobi Water Firm managing director Nahashon Muguna, whereas showing earlier than the committee, mentioned that the disparities or gaps within the billing system have been brought on when a number of cashiers tried to generate cost receipts from the system all of sudden.
Mr Muguna defined that the one method for the billing system to be correct was if one cashier was producing a receipt at a time whereas all the opposite customers of the system look forward to the transaction to finish earlier than they will generate a brand new receipt to keep away from interfering with the receipt course of.
Nonetheless, the committee now desires the corporate to improve its billing system. In 2018, the agency mentioned plans have been underway to obtain a software program to assist it detect overpayments and underpayments in water payments.
This was after it was revealed that the agency loses over Sh3.2 billion attributable to defective metering and billing techniques.
The water agency admitted to having challenges arising from billing errors, meter tampering by clients and overpayments resulting in the corporate having clients with credit score balances to the tune of over Sh152 million in 2017.
This having risen from Sh88.eight million in June 2016 with the agency blamed for having accounts that proceed to replicate credit score balances regardless of being lively.