Senators now want the Ethics and Anti-Corruption Commission (EACC) to widen its investigations in Trans Nzoia County to include revenue collection, amid revelation of systemic “looting” of revenue in the devolved unit.
The development comes after Governor George Natembeya admitted to revenue leakages and theft of revenue in the devolved unit.
The EACC is already investigating several questionable multi-million-shilling projects being rolled out by the county government.
Appearing before the Senate County Public Accounts Committee on Tuesday, Governor Natembeya confessed to the possibility of money being collected and pocketed in the county government.
This is after the devolved unit reported a collection of Sh261 million from revenue streams, excluding hospital fees, against a target of Sh643 million.
According to the Commission on Revenue Allocation (CRA), the county’s own source revenue potential is at least Sh2 billion.
Despite changing its revenue collection system, the committee, chaired by Homa Bay Senator Moses Kajwang’, was told that the county government still posted an under-collection of revenue of Sh22.7 million in the financial year ending June 30, 2024.
During the period under review, 11 revenue streams registered a drop in collection despite the county government procuring the new revenue system at a cost of Sh26 million.
In one instance, the county government reported to have collected Sh38,000 from slaughterhouses during the period under review. With the governor saying it costs Sh40 to slaughter a cow, this means that only 950 cows were slaughtered across all slaughterhouses in the county that year.
“It appears people were collecting money and pocketing it. This is symptomatic of theft. There appears to be more than Sh20 million stolen from Trans Nzoia people. We want to know who EACC should go after. Is it the system vendor, the receiver of revenue or the governor?” asked Senator Kajwang’.
“The EACC must investigate revenue collection in Trans Nzoia and tell us whether money was being collected and being pocketed. In the event that money was collected and not deposited, then culpable officers should be prosecuted.”
Senator Kajwang’ said the committee wants to know where the problem is—whether it is the revenue collectors or the new system—in what he described as “systemic looting”.
“There is no way Trans Nzoia is only collecting Sh261 million in revenue, excluding revenue from hospital fees, with all its wealth and revenue potential. You (Natembeya) must make sure money paid by mama mbogas in Trans Nzoia is accounted for. If it cannot be accounted for, then kick out the crooks,” he said.
Hard-pressed, Governor Natembeya told the committee he is trying to cure the problem of revenue leakages. He said Trans Nzoia’s revenue potential is Sh800 million and they have been sealing loopholes in the revenue department to realise the potential.
“Yes that possibility of money being collected and pocketed is there. People fight to be posted to the revenue department. That tells a lot; that there is theft,” he said.
However, the governor said the Sh22.7 million reduction in revenue collection was occasioned in part by a change of the revenue collection system. He argued that the change happened during the peak period for revenue collection and his administration could not collect revenue outside the system.
The first-term county boss said the vendor of the previous system, ZIZI revenue system, left with everything, forcing the county to begin afresh.
“I don’t see any link between the change of revenue collection system and the under collection. Was revenue not being collected during the change?” asked Mr Kajwang’.
Nandi Senator Samson Cherargei questioned whether the change in system was deliberate in order to allow for revenue leakage and inefficiency.
“Are there officers who have been fired or suspended since you have admitted to theft of revenue collected? It seems you are aware but you have decided to take a back seat. Have you reported people to the EACC or taken any administrative action?” he asked.
In his response, Governor Natembeya said his administration has replaced casuals and volunteer revenue collectors with new officers, changed the revenue collection system, and is mapping all revenue streams.
