SIBOWASCO permanent, contractual and temporary staff have gone three months without salaries, and counting, with no notification, circular or explanation from Human Resources.
Worse, SACCO, NSSF, SHA and PAYE deductions have not been remitted for over one year. Deductions are made from staff payslips, but the money never reaches the SACCO. As a result, staff cannot access loans or medical cover, are listed as defaulters on loans they are repaying, and have their savings frozen.
The financial control system has collapsed. The Finance Manager has resigned, sensing the exposure, leaving Managing Director Isaiah Adipo directly accountable.
Instead of a recovery plan, staff report silence from management, no salary schedule, no proof of remittances, and a climate of fear in which complaints are monitored rather than addressed.
Staff further report that their constitutional right to assembly and peaceful protest under Article 37 has been thwarted. Attempts to convene meetings to raise grievances over salaries and remittances have reportedly been met with intimidation and the presence of hired individuals. Staff allege that the group was led by an individual identified as Farouk. Staff are now calling for protection from the County Labour Office, the NPS and the Board to allow them to assemble peacefully without fear of intimidation.
Morale is at its lowest, while production is below 25 per cent of potential/installed capacity and non-revenue water (NRW) is over 60 per cent.
This is not just an HR issue. It is a legal breach:
1. Employment Act, 2007
- Section 2: Casual employment is limited to a maximum engagement of 24 hours.
- Section 37: Any casual employee working continuously for more than three months is deemed to be employed on a monthly basis. Such an employee gains the right to notice, leave, NSSF and SHA.
- Sections 18 and 17(4): Salaries must be paid by the due date. Delays beyond 30 days attract a 25 per cent penalty. Three months of unpaid salaries constitute a criminal offence.
2. Public Finance Management Act, 2012, Section 107(2)(b)
- Personnel emoluments are capped at 35 per cent. Prolonged engagement of casual employees without SRC approval is an audit query.
3. WASREB Guidelines, 2016
- Fair labour practices are a licence condition.
4. Constitution, Article 37, and Labour Relations Act
- Every person has the right to assemble, demonstrate and picket peacefully. Intimidation of staff seeking to raise lawful labour grievances is unconstitutional and constitutes an unfair labour practice.
THE RISKS NOW
- Legal: Labour Office compliance orders, ELRC claims, KRA/NSSF/SHA penalties, SACCO litigation and a constitutional petition under Article 37.
- Financial: Three months of salary arrears, 12 months of remittance arrears, 25 per cent penalties and interest could result in a massive liability.
- Operational: Low morale and high staff turnover. The response has collapsed, with some staff allegedly neglecting their duties deliberately while others have joined illegal activities.
- Governance: Engaging casual employees outside the approved establishment violates the State Corporations Act. The use of intimidation to block assembly exposes the Board to further sanctions.
WHAT MUST HAPPEN NOW
1. Immediate payroll audit — The OAG and/or an external auditor should quantify three months of salary arrears, 12 months of SACCO/NSSF/SHA/PAYE arrears, plus penalties, and identify casual employees who have worked for more than 90 days and are deemed to have been converted to monthly employment.
2. Immediate remittance — Pay three months of outstanding salaries and remit all deductions, with proof, within seven days.
3. Protect the right to assembly — The County Labour Officer, Sub-County Security Committee and Board must guarantee Article 37 rights. Any alleged intimidation by hired individuals must be investigated by the NPS and the Labour Office. No staff member should be victimised for raising lawful grievances.
4. Regularise casual employment — Absorb employees performing permanent work into the SRC-approved structure and lawfully terminate non-core roles in accordance with Section 35.
5. Board-approved HR Manual — Set a maximum of 89 days for casual employment, a 30-day break, salary payment by the fifth day of the month, and remittance within seven days.
6. Controls — Automatically flag payroll records at 85 days of casual employment and salary delays beyond the fifth day of the month. Submit monthly reports to the Board Audit and Risk Committee, and invite the OAG, WASREB and the Labour Office to verify compliance.
SIBOWASCO cannot achieve 100 per cent coverage, reduce NRW below the current 60 per cent, or achieve 100 per cent water quality compliance while staff remain unpaid for three months, SACCO deductions are allegedly diverted for over a year, and their right to assemble peacefully is allegedly thwarted.
Staff demand immediate payment, immediate remittance with proof, protection of their right to assembly, and an independent audit.
