Auditor General Nancy Gathungu has revealed widespread misuse of public funds by ward representatives, through weak financial controls and failure to properly account for spent funds in county assemblies.
The latest audit has revealed how MCAs continue to splurge billions of shillings on non essentials such as travel, hospitality, salaries and allowances.
The affected county assemblies include Kisumu, Homa Bay, Nyandarua, Tharaka Nithi, Nyamira, Nakuru and Baringo among others.
In Kisumu for instance, Sh12.1 million was paid as honoraria allowances to MCAs and staff involved in budget preparations — an activity that is part of their day-to-day responsibilities — thereby occasioning wastage of public funds.
The officers also received salaries as compensation for their services during the year under review.
In another incident of wastage of taxpayers’ money, Kisumu County Assembly leased additional offices at a private building in preparations for the renovations to the currently occupied premises.
The assembly entered into a lease agreement on May 9, 2018 for a monthly rent and service charge of Sh962,490 and Sh237,510 respectively per month.
However, the assembly did not occupy the leased premises for 16 months since the lease agreement was signed.
As a result, the premises continued to attract rent which amounted to Sh19.2 million as at June 30,2019.
Shockingly, the Sh19.2 million was not disclosed in the financial statements submitted for audit.
The body’s primary mandate is to promote networking and synergy among the 47 assemblies, coordinate inter-governmental relations and enhance good practice in legislative development.
During the year under review, a number of county assemblies including Nyandarua, Tharaka Nithi and Nakuru made unlawful annual subscription fees to the CAF.
Nyandarua County Assembly, for instance, made unlawful annual subscription fees of Sh5million to CAF.
“The county assembly made the contributions as annual subscription fees to CAF. The payment was illegal and contrary to the Public Finance Management Act, 2012,” reads the Auditor-General’s report.
The Nyandarua assembly also made unsupported ward expenses of Sh9.9 million to 25 MCAs’ ward offices.
However, the expenses were not supported by the electronic tax register (ETR) receipts, casting doubts on their authenticity.
The county assembly operates 25 accounts in commercial banks through which standing imprest for the operations of ward offices are paid.
The bank accounts were, however, not disclosed in the financial statements submitted for audit.
Consequently, about Sh29 million may have been misappropriated.
The first Speaker of the Nyandarua County Assembly declined to swear in a nominated member on grounds of suitability in 2013.
The aggrieved member sought redress in court, which ruled in his favor by way of award.
According to the ruling, the unpaid amount attracts interest at the rate of 14 per cent per annum effective July 30, 2017.
By June 30, 2019, the county assembly had settled an amount of Sh1.6 million, leaving a balance of Sh12.2 million. There was no budget provision to settle the obligation.
In Nakuru, the assembly made unauthorised expenditures amounting to Sh4 million as subscriptions to CAF and membership fees for other bodies.
“Nakuru County paid Sh3.3 million as part of payment of Sh5 million annual subscription fees to the County Assemblies Forum. The funds were not budgeted for and the move was contrary to the Intergovernmental Relations Act, 2012, which says the national government should cater for such expenses,” reads the audit report.
Nakuru County Assembly also made irregular expenditure on domestic travel and subsistence amounting to Sh117.2 million.
Part of the amount was Sh70.6 million paid for committee meetings held outside the assembly precincts, without the necessary approvals and justifications.
The report further revealed, that Nakuru’s expenditure on foreign travel increased from Sh17.5 million in 2017/2018 to Sh40 million in the 2018/2019 financial year.
However, analysis of the payroll, which records actual payments made by the county assembly, indicated an amount of Sh81.1 million, while the clocking sitting allowance management system reflected an amount of Sh55.2 million.
In Nyamira, the county assembly made illegal payments of Sh2.5 million to various hotels for the provision of hospitality services.
However, examination of records indicated that the expenditure was committed in the 2017/2018 financial year, but was not disclosed in that year’s list of pending bills.
The audit revealed that each of the 20 wards had four members of staff, contrary to the ceiling of three set by the Commission on Revenue Allocation.
Further in Nyamira, the assembly awarded a contract of Sh367 million for construction of a six-floor office block.
The contract was to run for a period of 156 weeks up to June 13, 2021.
The budgetary allocations for the year under review was Sh117 million. However, the audit revealed that at least Sh44 million had been paid but the building was behind schedule by six months.
In Baringo County, the assembly used Sh2.3 million as expenditure on routine maintenance of vehicles and other transport equipment.
However, reports from the mechanical and transport department show the repairs and maintenance work done were not presented for audit.
Four MCAs in Baringo County were paid Sh1.5 million in mileage claims for 10 months from September 2017 to June 2018 after they reportedly transferred their respective ward offices to new locations.
However, there was no evidence to show the MCAs incurred any costs in lease agreements for new offices. Therefore, it was not clear if indeed they had transferred their offices.
The latest reports by the Auditor-General reveal that many county assemblies are grappling with stalled projects, mainly debating chambers, with skewed employment replicated in most of them.
In Tharaka Nithi, the county assembly made irregular procurement of furniture for ward offices. The assembly paid a firm Sh4.2 million for the supply and delivery of furniture to MCAs ward offices.
However, scrutiny of available tender documents revealed that a firm which had procedurally bid for the supply had quoted a price of Sh3.9 million, an amount lower than that of the company that was awarded the contract.
The audit revealed that the county assembly may have unlawfully disqualified the Sh3.9 million bidder on false grounds.
A review of the Tharaka County Assembly payroll revealed that an employee who resigned on June 4, 2019 and opted to leave immediately did not pay the House one month’s salary in lieu of notice as per the employment laws.
Instead the employee was paid a salary of Sh162,310 for the month despite not having worked.
The county assembly also irregularly paid subscription fees of Sh5.3 million to CAF and Society of Clerks at the Table (Socat)
In Homa Bay County, MCAs were unlawfully paid Sh242 million as sitting allowances. The audit reveals that out of the amount, Sh5.3 million was paid as special committee allowances to 60 MCAs but no records were provided to show if there was a gazette notice calling for the meeting.
Further, the attendance register revealed that 28 MCAs were paid allowances though they were absent.
