Audit report unearths massive irregularities, theft of cash in counties
Eric Wainaina @Ewainaina
The taxpayer may have lost billions of shillings sent to counties in the 2018/19 financial year after investigations by the Auditor General’s office exposed massive irregularities and possible theft.
Auditors, after perusing financial statements in the counties exposed possible theft or wastage of public money through unexplained and irregular expenditures, questionable pending bills, unbanked revenue, inflation of costs and payments of goods and services that were not delivered as well as undisclosed assets.
The Nancy Gathungu-led body has since forwarded the reports to the senate where respective governors are expected to appear before the House Public Accounts and Investments Committee to respond to the audit queries.
Reports from 20 counties have already been made public after being approved by Gathungu.
Nakuru has been fingered over a possible loss of over Sh600 million whereby receipts and payments reflected payments of Sh12 billion including Sh698 million, whose IFMIS details revealed was irregularly charged to the recurrent and development votes.
“In the circumstances, the accuracy and completeness of the expenditure amounting to Sh 698,872,859 for the year ended June 30, 2019 cannot be confirmed,” the audit report concluded.
Trans Nzoia failed to support expenditures on use of goods and services amounting to Sh1.55 billion since it was unable to provide supporting documents for some of the costs, undertook irregular purchase of machinery under the agriculture department at a cost of Sh18 million.
“The statements and receipts and payments for the years ended June 30, 2019 reflected expenditures on acquisition of assets totalling to Sh1, 518, 293, 601.
The balance includes Sh109, 755, 961 and Sh126, 870, 220 in respect of construction of buildings and civil works respectively.
However, procurement and other supporting documents for contracts costing Sh85,002,981 were not presented for audit,” says the report.
Tharaka Nithi is on the spot after it failed to provide financial records for its budget implementation, making it impossible for the auditors to confirm the accuracy of the financial statements for the Executive during the year under review.
Nyamira had its wage bill shoot by upto Sh1 billion following the questionable employment of 736 new employees.
The county also was unable to explain an expenditure of Sh34 million that was paid for the construction of the county headquarters, a project that had stalled, and no documents were availed to explain whey it had stalled.
Samburu, county government on the other hand paid Sh751 million for pending bills, including Sh147 million paid to the ministry of health and ministry of water but the bills were not disclosed in the financial statements on the year as required by the law.
Governor Francis Kimemia of Nyandarua will have to explain among other things, how the county paid Sh153 million to an engineer for gravelling and grading on roads.
Nyeri made unsupported transfers of Sh42 million to Youth Polytechnics which included Sh9.4 million to eight polytechnics but there were not documents to prove that the money was received and Sh9 million sent to facilitate refurbishment of old building in polytechnics yet there were n requisitions or bills of quantities from the respective institutions.
In Laikipia, Governor Nderitu Muriithi’s government spent Sh2.6 billion on staff compensation yet the approved amount was Sh2.4 billion and no explanation of the approximately Sh185 million excess amount was expenditure was not verified.
Homa Bay County was fingered over used on irregular of unbanked receipts whereby in their financial statement reflected that the county own generated receipt of Sh215 million, including Sh125 million from the health sector revenue which were not banked in the County Revenue Fund account, and was instead spent directly at the source.
Further, Governor Cyprian Awiti will also have to explain how his government undertook unsupported expenditure, unsupported construction of finance office at a cost of Sh44 million, unsupported maintenance of vehicles, and payment of security benefits amounting to millions
Elgeyo Marakwet has been fingered over unbanked over unconfirmed owned-generated revenue balance leading to unexplained Sh108 million, unbanked revenue, non-disclosure of temporary employees and their unreconciled compensation, unsupported domestic travel and subsistence, unsupported fuel and lubricant payments and unconfirmed fixed asset balances.
Bomet incurred Sh101 million under various vote heads which were not in the budget, did irregular legal payments of Sh59 million, compensation of fuel to private motor vehicles belong to the deputy governor at a cost of Sh6 million without authority, unsupported expenditure on air travel valued at Sh12 million as well as irregular procurement of drugs at sh3.7 million.
Machakos spent Sh37 million for installation of a substandard running track at Machakos Stadium which worn out in less that one year, and the auditors concluded that unless corrections are done, “the value for money will not be obtained on expenditure of the Sh37. 9 million incurred on the track.”
Kisumu spent Sh66 million to pay temporary but no documentary evidence was provided to show the need for the temporary employees and how they were identified while Governor Jackson Mandago’s Uasin Gishu spent Sh1.7 billion to acquire assets but explanation of payments records and audit verification were unsatisfactory.
