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Ngilu, Wambua clash over 'loss of millions' in Kitui textile project

Eastern

By Edwin Nyarangi | Nov 15, 2024

**Former Kitu Governor Charity Ngilu with current Governor Julius Malombe** **after they appeared before the Senate County Public Investments and Special Funds Committee over audit queries at Bunge Tower on November 14, 2024,** [Boniface Okendo, Standard]

Kitui Senator Enock Wambua and former Kitui Governor Charity Ngilu clashed yesterday over the management of the Kitui County Textile Centre (KICOTEC) during a Senate Committee session.

Ngilu was summoned to respond to allegations of financial mismanagement during her tenure as governor.

Ngilu, who appeared before the Senate County Public Investment and Special Funds Committee after previously missing two invitations, accused Wambua of politicising the KICOTEC project.

Wambua argued that substantial funds had been misappropriated through KICOTEC, claiming a company named Kitui County EPZ Limited was set up to seize public land.

“This issue isn’t about Governor Julius Malombe or former Governor Charity Ngilu; it concerns the future of Kitui’s youth. KICOTEC has been a conduit for misusing public funds, and the former Governor should address these facts rather than distort them,” he said.

Keep Reading business

Ngilu fired back, accusing Wambua of engaging in “cheap politics” and urged the Committee, led by Vihiga Senator Godfrey Osotsi, to visit Kitui and inspect KICOTEC.

She explained that KICOTEC was one of the first county parastatals established under her administration and had received contracts from various government bodies and counties to manufacture staff uniforms, proving it was a viable enterprise that deserved support.

Politics

Addressing rumours that KICOTEC land might be under threat, Ngilu defended the project as a long-term job creation initiative for local youth.

“When we launched this project, it was driven by a commitment to do what is right. Any irregularities should be corrected, but it’s disappointing to see someone discrediting a project that benefits Kitui people. If this is about politics, I can play politics too,” the former Governor said.

However, current Kitui Governor Julius Malombe told the Senate Committee that KICOTEC was financially unviable, having posted a Sh90 million loss while making modest profits of Sh4 million in 2020 and Sh6 million in 2021.

He argued that county governments should refrain from engaging in business ventures.

“There is a lot of politics around this, but I am committed to making lawful decisions. I question why the Auditor General was not provided with essential documentation to clarify the centre’s operations,” said Malombe.

According to an Auditor General report for the financial year ending June 2022, KICOTEC’s wage bill showed significant discrepancies, with Sh49.1 million paid to casual employees and Sh56.7 million in irregular wages flagged the previous year.

Casual workers had reportedly signed no contracts, and their wages did not match rates set by the Salaries and Remuneration Commission.

Additionally, some casual workers were employed for over three months, breaching Section 37 of the Employment Act, 2007.

The report also revealed that KICOTEC’s liabilities rose from Sh68 million in the previous year to Sh90.7 million, while revenue dropped sharply from Sh203 million in 2021 to Sh78.6 million in 2022.

Penalty lifted

Payment processes were found lacking, with vouchers missing details.

Audit queries surfaced around Board operations, including missing personal files for Board members, insufficient meeting notice periods, and unsigned minutes.

Ngilu requested the committee to lift a Sh500,000 fine imposed on her for previous absences, arguing she had only received the summons via a WhatsApp message from an unknown number.

She stated that her physical addresses in Nairobi and Kitui were public knowledge and suggested that physical documents or postal communication would have ensured she received the invitation.

Committee Chair Osotsi acknowledged Ngilu’s explanation and announced the fine’s suspension, but noted that WhatsApp is now accepted as an official communication tool. She urged Ngilu to monitor such communications in future.