How officials are minting millions in bursary cash through ghost students
Auditor General Nancy Gathungu at Inn Paradise, Mombasa,
on September 16, 2022.
Bursaries worth millions of shillings were awarded to students whose records could not be traced and their application had no names of their learning institutions.
Latest audit reports of the National Government Constituency Development Fund (NG-CDF) tabled in Parliament indicate a pattern where millions of shillings were recorded to have been sent to students, but when Auditor General Nancy Gathungu asked for verification documents, they were not available.
Some constituencies spent millions to take students to private technical institutions but could neither provide the list of beneficiaries nor show evidence of training. In some, bursaries were disbursed without the NG-CDF committee sitting to assess applicants’ neediness as required by law. This means the money meant to assist needy students went to non-existent or undeserving cases.
Breach of law
In Turkana West, in a report of the year ended June 2021, Sh29 million was disbursed as bursaries to secondary schools and tertiary institutions in total disregard for the law and regulations.
“There was no evidence to confirm that vetting, identification and categorising of needy students was done by the bursary subcommittee. This is contrary to the NG-CDF board circular, which requires formation of a subcommittee to manage the bursary scheme,” reads the report.
The report adds that there was no database of secondary schools, colleges and universities, as registered by the Ministry of Education, to ascertain whether the beneficiaries study in registered institutions.
A similar trend was noted in Embakasi South, in a 2010-20 report, where the auditor questioned the Sh17.5 million paid to tertiary institutions for various training programmes.
Documents acknowledging receipt of the money and confirming beneficiaries’ training and whether they gained the required skills were not provided. Ms Gathungu, therefore, says the validity and regularity of the disbursements could not be confirmed.
The trend is replicated in Lungalunga, in a 2019-20 report, where Sh24.9 million was disbursed to students in secondary and tertiary institutions, but there was no evidence that the bursary committee vetted the applicants.
“In addition, application forms were not supported with evidence of enrolment in the learning institutions. In the circumstances, the accuracy and completeness of the bursary disbursements amounting to Sh24,946,078 could not be confirmed,” reads the audit report.
The constituency is also on the spot over a number of irregularities amounting to Sh19 million in procurement in various projects undertaken during the year under review. The report says there was no proof that the tenders were advertised, no appointment letters to contractors and no signed tender documents.
In Eldama Ravine, in the report for the year ended June 2019, the disbursement of Sh27 million has been questioned as it was not supported by a list of beneficiaries per school and the sums disbursed.
“Further, the bursary policy and evidence of bursary committee’s work were not made available for audit. The authenticity of the bursary beneficiaries could not be established,” it reads.
For Ndaragwa, in the audit report for the year ended June 2019, the Auditor General has questioned bursaries amounting to Sh27,662,646, saying the list of beneficiaries was not provided, hence the validity of the payments could not be established
Ms Gathungu also noted a number of deficiencies in 10 Ndaragwa projects worth Sh26,058,794 that were sampled for audit.
The deficiencies noted include non-completion of the projects, non-submission of expenditure of returns and non-retention of cash from the contractor, which is contrary to section 26 (1) of the standard tender document for procurement of works.
“Consequently, the constituents of Ndaragwa might not realise value for money from the unsatisfactorily implemented projects,” reads the report.
In Kacheliba, Ms Gathungu has raised questions about Sh2.74 million used to build two classrooms and completion of a dormitory, as no documents were made available for the audit.
According to the report for the year ended June 2019, Sh980,000 was used to build a classroom at Mistin Primary School and a similar amount used to build another classroom at Tarakit Primary School, while Sh780,000 was used to finish construction of a dormitory from lintel to roofing.
Stalled projects
Ms Gathungu has also noted in her report that in Chepalungu, 21 projects worth Sh11.2 million were not completed but the contractor has already moved out of site, while others have been abandoned as contractors cited delayed funding.
She adds in her report for the financial year ended June 2020 that the projects were characterised by poor workmanship as cracks had started developing in them.
In Baringo Central, the auditor, in her report for the year ended June 2021, has faulted the CDF committee for spending Sh3.4 million to inspect projects.
The Auditor General says the expenditure was not supported by payment vouchers, minutes of committee meetings, list of projects visited, work tickets and monitoring and evaluation reports.
Ms Gathungu also questioned the Sh1.5 million that was used to purchase uniform kits, balls and trophies for distribution to competing sports teams as there was no evidence to confirm that the teams received the items.
During Christmas and long school holidays, MPs usually organise sporting activities in their constituencies to keep the youth busy and foster unity.
On Thursday, the National Treasury agreed to disburse Sh2 billion weekly tranches of NG-CDF after months of contention with MPs following a Supreme Court decision that declared the fund illegal.
Constituencies will now get Sh44.289 billion in 23 weeks, with the first disbursement set for Friday next week. The Supreme Court had, in a case filed by Wanjiru Gikonyo and other activists, ruled that the CDF Act, before its amendment to form the NG-CDF, was unconstitutional.
Although MPs do not sit in the CDF committees, they play a bigger role in the selection of members of the team that manage the fund. This gives them room to appoint their cronies, including spouses and relatives, and misuse the funds. Constituencies receive about Sh140 million annually and there is a legislative proposal to double the amount.
