ttp:// nation.co.ke /news/politics/ Auditor-General- Counties-Defunc t-Councils-Fund s/-/1064/ 2483202/-/ h90wmt/-/ index.html The Auditor-General has faulted more than 35 county governments for flouting accounting procedures during their transition from the defunct local authorities in which officials could have pocketed public funds amounting to billions of shillings. The county governments spread across the country have been found guilty of gobbling billions of shillings through unwarranted procedures in the transfer of assets and liabilities of their former county councils to the devolved units. Counties have been cited to have breached orders by the transition authority to close the accounts formerly run by the councils. The report, compiled in February but released this week, stated that there was no authentic register of assets, and that, the auditors feared, could lead to massive pilferage. The audit raises concerns about the manner in which assets, debtors, creditors and staff were transferred to county governments. Auditor-General Edward Ouko said critical documents to back the actions of governors and their chief officers were missing. Mr Ouko stated that county governments also did not close accounts ran by municipal councils as directed by the Transition Authority. This, he said, was likely to provide room for theft since it became difficult to trace documents that supported transactions done through the accounts. “Some defunct councils continued operating all the accounts, some of them at the time of the audit without changing bank signatories,” Mr Ouko said. The counties under study failed to account for revenues collected during the transition from the local government to the counties as most of these were not banked in the required accounts. Nairobi was put on the spot following unbanked revenue of Sh252 million; cess collection deviation of Sh2.8 million. The county was also questioned over utilisation of Sh11 million collected from the city court against normal procedures where the monies are supposed to be deposited until cases at the court are heard and determined. In Makueni County, there was no record provided to show the assets which were handed over to the county government. The government of Makueni did not validate or consolidate its fixed assets especially those relating to the three defunct local authorities; the record for the same assets valued at Sh30million was lacking. The county further spent Sh3,676,000 in May last year for paying per diem to MCAs and technical staff and yet the hotels had been paid full accommodation. “This amount to double payment and the allowances should be recovered from the respective officers,” the audit directed. INCOMPLETE PROJECTS In Machakos, questions were raised regarding the accuracy of a debtors list amounting to Sh1,036,076 as well as the legitimacy of an undetermined land parcels and buildings valued at Sh961,451,472. These land parcels were found to lack title deeds and were prone to grabbing. Machakos also had issues with incomplete projects worth Sh12 million, which risk stalling; 16 vehicles purchased for the county executive at Sh32 million were also discovered to be second-hand therefore raising questions on ownership. The audit further faulted an expenditure of Sh2,880,160 during the funeral of the late senator Mutula Kilonzo and another Sh4,000,000 paid to MCAs irregularly for an induction course. “An expenditure amounting to Sh7.5million was incurred termed as ‘confidential expenditure’ by the governor, the whole amount was not accounted for to confirm whether it was lawful as a proper charge on the public funds,” the report stated. Sh70 million banked to accounts run by the councils due to delay in opening of the Kitui county government revenue account features in the report. A further Sh371 million on fixed assets by various councils could also not be traced. In Busia, questions were raised over payments made in a Sh7 million contract for the renovation of the governor’s offices and a perimeter fence. Some of the cash was transferred without authorisation. Almost Sh1 million collected between July 2012 and February 2013 could not be accounted for. In Homa Bay, Sh24 million was not handed over to the county government. The county was also put on the spot following irregularities in their payroll system, which was not valid. REGISTER OF ASSETS Kisumu was faulted for failing to keep records of assets worth Sh15 million bought during the transition. “There was no register of assets bought when the county government came on board. The same were not labelled for ease of tracing,” read the report. The county government was also accused of paying county executive committee members maximum salaries, contrary to the Salaries and Remuneration Commission circular dated May 27, 2013. The audit also revealed that Vihiga County paid more than Sh2 million for insurance premiums but the underwriting company had no evidence to confirm the monies were remitted. Kilifi County was notably out of order with its irregular procurement of a power generator, purchase of voting and Hansard equipment at Sh6 million and purchase of second hand vehicles from a local supplier at Sh12 million. “These motor vehicles have not been registered and it is therefore not clear whether they have been recognised as property of the County Government of Kilifi,” the auditor stated. In Mombasa, the auditors raised the red flag over 15 accounts operated by the defunct council that were not disclosed to have been handed over; only five accounts were recorded yet the county had overdrawn Sh1.1 billion. “The County Government did not open bank accounts at the sub county level for banking of the revenue collected at the sub county. Failure to close bank accounts implied that revenue collections continued to be banked in these accounts, and expenditure incurred, contrary to the law,” the Mombasa report reads. Other counties that had similar issues include Siaya, Trans Nzoia, Samburu, Kiambu, Murang’a, Nyeri, Kajiado, Laikipia, Nandi, Bungoma, Elgeyo/Marakwet, Uasin Gishu with the list of claims of misappropriation of funds endless. SENATE POWER PLAY But governors dismissed the alarming nature of these reports stating that they are being addressed. Through their council, the governors said they have no problem with accountability only that there were indications of power play behind the summonses to appear before the senate in person to respond. Chairman Isaac Ruto told theSunday Nationthat facing the senate was a breach of the law. He said the county assemblies were already doing enough oversight on the county executive and therefore going to the senate is ‘a waste of time’. The governor explained that it was an abuse of the devolution principles to subject the county governments to appear before the house. “We have no problem with accountability; what we have a problem with is the insubordination of county assemblies which are already doing a good job,” he said. He said counties require to be checked by MCAs just like MPs check excesses of the national government. “The senate doesn’t need to waste governors time yet there are several issues in the county that require our attention,” he said. The chairman of the council of governors added that county officers sent to the committee were better placed to respond to the matters the legislators are raising. “Let them instead call President Uhuru Kenyatta and his deputy William Ruto to explain where monies getting lost at the Office of the President are. That is the job Kenyans elected senators to do,” he added. “Must I go to explain why we banked Sh185 million into an account run by the county council of Bomet? Did they want us to stop working just because the county did not have an account? Are these not just attempts to tarnish my name as we are pushing for Pesa Mashinani?” he asked. He spoke even as Kisumu governor Jack Ranguma accepted the summons and appeared before the Dr Bonny Khalwale-led committee to clear his name. But Dr Khalwale said his insistence that governors appear in person before the committee has nothing to do with usurping the powers of governors. He said: “Article 179 (4) stipulates that governors are the chief executive officers of their counties and have, as such, no alternative but to personally be accountable for funds under their watch.” Dr Khalwale said no public office(r) was exempted from responding to issues that touch on accountability of public funds. SIAYA During the year under review, the defunct Municipal Council of Siaya collected revenue totaling Sh5.9million out of the revenue collection only Sh2.8 million was banked intact, resulting to a difference of Sh3.1 million. TRANS NZOIA The County Government did not open a County Revenue Account immediately after its inauguration as required by the Transition to Devolved Government Act, 2012, neither did the defunct local authorities close the bank accounts on February 28 and transfer any outstanding balances in to the revenue account. SAMBURU Review of expenditure controls at the County revealed that payment totaling Sh29,176,562 were not subjected to examination and vote book certification contrary to the financial controls stipulated under Section 104 (i) of the Public Finance Management Act, 2012. KIAMBU During the period under review, the County procured 9 motor vehicles for its County Executive Officers at Sh47.7 million. These vehicles were however fitted with private number plates instead of county number plates. MURANG’A At the time of the audit, all the staff of the seven defunct local authorities were transferred to the County Government but have not been subjected to the County Public Service Board for confirmation and redeployment as employees of the County Government. TANA RIVER The County Government of Tana River did not regularly update the cashbook. A comparison of the bank certificates and the cashbooks as at June 30, 2013 revealed a difference of Sh127,718,916. Bank reconciliation statements were also not prepared for these bank accounts. BOMET The County Government executive opened three bank accounts into which a total of Sh1,663,876 was transferred on 27 June, 2013 when the bank accounts of the former councils were closed. However, the bank accounts were not closed and balances transferred to the County Revenue Account. WAJIR The county was put on the spot following an irregular single sourcing of goods and works. A total of Sh5.3 million was incurred on procurement of office stationeries at Sh2,449,750 and food stuffs at Sh2,902,000. However, the goods were allegedly single sourced.
Posted on: Sun, 12 Oct 2014 06:04:36 +0000
Trending Topics
Recently Viewed Topics
© 2015