Governor Kiarie Badilisha is staring at a date with the anti-graft agency over questionable expenditure of at least Sh785 million incurred by the county government.
The development comes after a Senate watchdog committee flagged several financial malpractices at the county government in the financial years ended June 2020 and 2021.
With the county grappling with 69 grave audit queries raised by the Auditor-General Nancy Gathungu in the two fiscal years, the Senate County Public Accounts Committee has called on the Ethics and Anti-Corruption Commission (EACC) to investigate possible fraud, corruption and other financial improprieties.
The first query involves outstanding imprest amounting to Sh306.4 million issued during the financial year ended June 2021 but not cleared contrary to regulation 97(1) of the Public Finance Management Act, 2015.
There was also unsupported hospital transfers amounting to Sh275.9 million which was not supported by way of detailed expenditure returns from each medical facility, opening bank balances and certificate of bank balances.
The queries include a Covid-19 funds balance of Sh89.3 million, which was also not supported by payment vouchers, bank statement, or expenditure returns.
There was also the expenditure of Sh8.4 million in hospitality supplies and services that was not supported by way of imprest warrants, surrender vouchers, memorandum cash book for imprest, public participation minutes and approved work plans.
“We are giving the county government a week to provide the vouchers failure to which EACC is directed to investigate,” said the committee’s stand-in chairperson Isiolo Senator Fatuma Dullo.
The county government also paid Sh30 million to a construction company with the payment not supported by way of procurement records, contracts, certificates of works done and inspection and acceptance committee certificates.
Related to the query is another Sh27.2 million paid for projects not included in the approved budget, where the county also failed to provide respective project files for audit review
Another Sh31.5 million was spent on travel expenses without requisite documentation. The questionable expenditure saw officers paid per diem and travel allowances directly to their bank accounts without the use of imprest warrants.
“Although all journeys should be approved by the Officer-in-Charge prior to the occurrence of the activity, various activities were undertaken throughout the financial year without prior approvals. It was noted that approvals are done after the activities and journeys were undertaken,” said Ms Gathungu.
The county government was also on the spot over unsupported payment of Sh16.3 million to contract employees, casuals and interns that was not supported by employment letters, payroll details or approvals from the County Public Service Board.
The county government was also fingered for struggling with basic book-keeping with financial statements littered with reconciliation errors. It was also faulted for not correcting the anomalies on time even after they were pointed out.
Appearing before the committee, Governor Badilisha admitted to the errors, saying, the preparation of the financial statements was not up to standard. In his defence, he said the Finance Department had staffing challenges, which he was addressing.
“ The county didn’t have trained accountants. Money was spent properly but records weren’t kept,” he said, adding that a financial reporting unit was now in place. Finance and Economic Development Chief Officer Juvenalis Gitau Thiong’o found himself in trouble after his signature and Institute of Certified Public Accountants of Kenya (ICPAK) number was used to approve the financial statements.
The committee was told that Mr Thiong’o’s predecessor, who prepared the statements, was not even an ICPAK member and that is why the chief officer signed on his behalf. Nandi Senator Samson Cherargei accused Mr Thiong’o of impersonation for signing financial statements prepared by someone else.
“We need to call for your de-registration by ICPAK,” he said, sentiments that were echoed by Kisii Senator Richard Onyonka.
Mr Thiong’o was also on the spot for frustrating auditors by not providing required documents in time. Busia Senator Okiya Omtatah called on Governor Badilisha to take administrative action against the officer for his misconduct, citing section 62(2) of the Public Audit Act, which prescribes a Sh5 million fine or imprisonment for no more than three years, or to both for failing to produce audit documents.
