Senior Busia County officials sent packing in Sh100 million probe

The Busia County Assembly has sent two senior officers on a 90-day compulsory leave to pay way for investigations into a Sh100 million that cannot be accounted for.

The two senior officers are being accused of alleged massive mismanagement of money belonging to the County Assembly Revolving Fund Scheme.

The County Assembly Clerk Allan Mabuka and the Director of Finance and Accounts Gabriel Erambo were sent packing by the County Assembly Service Board chaired by Speaker Frederick Odilo to allow for investigation.

In a letter dated March 10, and separately addressed to the two, the Assembly Service Board advised them to proceed on a fully paid leave to allow a special team to undertake an audit of the accounts.

Ninety days audit

 The exercise to take 90 days may be extended in case the audit is not complete when the time elapses.

 “In view of the adverse opinion of the Auditor General that public resources have been not been applied lawfully and effectively; and the Financial Statements for the year do not present fairly; the financial position of Busia County Assembly Revolving Fund as at June 2022 and its financial performance and cash flows do not comply with the Finance Management Act 2012 and Busia County Assembly (Revolving Fund Scheme) Regulations 2014, the Board resolves that you proceed on leave with effect from the date of this letter,” a letter signed by Odilo says.

 The decision by the Assembly Service Board follows a damning report by the Busia County Public Investment and Accounts Committee report that was table on March, 7 and   debated and unanimously passed by the house on Thursday last week.

 In the report tabled by the committee chairperson Dr Bonface Erute, the management of the Revolving Fund cannot account for over Sh100 million as per the Auditor General’s report ending June 2021.

 The Auditor exposed many glaring discrepancies with current loan repayment financial statement indicating Sh36,948,932 while supporting schedule indicated Sh85,493’828, a variance of Sh48,544,896.

 Under the long term long repayment, financial statement indicated an amount of Sh302,832,133 while supporting schedule had Sh352,310,071, a  disparity of Sh49,47,938

 The Fund management is also accused of failing to provide reconciliation statements for the audit review for cash and cash equivalent amounting to Sh106,357,870.