The Auditor-General, Nancy Gathungu, has asked the Ethics and Anti-Corruption Commission (EACC) to investigate suspected financial malpractices in the Busia County Government amounting to millions of shillings.
This follows a damning letter from Busia Senator Okiya Omtatah who alleged suspicious procurement in the county government since September 2022.
Ms Gathungu said the issues raised by the lawmaker are being audited and will be captured in the final audit report for the fiscal year 2023/24 to the Senate.
The Auditor-General said that she has copied her response to the EACC for the agency to investigate the operations of the Busia County Executive.
“Issues raised in your letter are serious and require adequate follow up including investigations, where necessary, by relevant investigative agencies,” said Ms Gathungu in a November 5, 2024 letter.
Senator Omtatah alleged that the county awarded Walji Construction Company Limited a Sh29.9 million contract for the renovation of the Governor’s Lounge on June 30, 2023.
He said this was contrary to government policy that all procurement commitments should be done latest by May 31 of every year.
The lawmaker further claimed that the previous administration had awarded a contract for the same works to Makokha Busia General Works Limited in 2015 at a contract sum of Sh5.67 million.
Mr Omtatah said the previous contractor had not handed over when the new contract was awarded. The senator said he requested the procurement documents for the projects but has not been given.
Ms Gathungu said that her office had also made a similar request but had not received the documents during the last audit review for the fiscal year ended June 2023.
He alleged that the tender for the project was awarded secretively without competitive bidding and the scope of the work is unknown. He also said that there is not value for money because the town is still dirty.
“On the issue of beautification of Busia town, the transaction took place in the financial year 2023/24 and therefore is being covered during the current audit,” said Ms Gathungu.
Mr Omtatah also alleged that the purchase of a refrigerated truck and construction of a modern fish filleting room were done irregularly.
He said that the county government allegedly bought a dilapidated refrigerated truck at Sh10 million yet his investigations revealed that a similar new vehicle costs Sh5.5 million.
The senator also claimed that taxpayers did not get value for their money in the Sh40 million plan to upgrade Bunyala Fishermen Cooperative Society.
In her response, Ms Gathungu said information available indicates that the county government awarded a local company a Sh5.8 million tender on August 26, 2014 for supply of a refrigerated truck.
He noted that documentary evidence on the method of procurement used and the requisition by the user department were not provided for audit verification.
Interestingly, the vendor sued the county government in 2017 for delayed payment and the court would order the county government to pay the Sh5.8 million, interest accrued over the years of Sh3.6 million and cost of the suit of Sh341,980 for a total amount of Sh9.753 million.
“The county government has to date paid the company a total of Sh9.378 million in two batches of Sh4.5 million in December 2023 and Sh5.238 million in February 2024,” said the auditor.
Nonetheless, Ms Gathungu said that a site visit, during the current audit process, in September 2024 revealed that indeed the vehicle was parked at the County Commissioner’s office in Busia Town and was not in use and was in a dilapidated condition.
Further, the truck bears a private registration number KCA 299X and has not been transferred to the county government.
“Given that the payment transactions took place in the financial year 2023/2024, the issue is being covered during the current audit and exceptions will be reported in the final audit report to the Senate,” said Ms Gathungu.
There was also the issue of hiring a dredger from Uasin Gishu County in the 2022/2023 fiscal year to open waterways along Lake Victoria shoreline in Budalangi Constituency.
According to Mr Omtatah, the dredger worked for only two weeks and allegedly raked in millions of shillings before being returned to Eldoret.
Mr Omtatah also raised issues over the alleged creation of ineligible pending bills, diversion of funds, irregular or selective payment and non-payment of pending bills
He alleged the existence of inflated pending bills balances of Sh740.6 million for the financial year ending June 2021 and Sh1.77 billion in the following fiscal year with no reason given by the Executive for non-payment although the county government has been budgeting for the same over the years.
The MP had also indicated that funds meant for settling pending bills have sometimes been diverted to other votes and that supplies have been received from suppliers through nepotism, favouritism and other improper motives or corrupt practices in settling the bills.
Ms Gathungu said their audit revealed that the county has a pending bills portfolio of Sh1.94 billion as of June 30, 2023.
“On issues pertaining to nepotism, favouritism in payments of pending bills, I would appreciate it if you wish to share more information or evidence with my office for a follow-up through a special audit or submission to the EACC for investigations,” she said.
