Sh445m lost in CDF scandal

Taxpayers have lost Sh445 million through theft and mismanagement of constituency funds.

According to a report released on Tuesday by the lobby group, National Taxpayers Association, the cash that could not be accounted for, is feared to have either been pocketed by individuals or mismanaged by various Constituency Development Funds (CDF) boards in the financial years 2006/07 and 2007/08.

Treasury initially released Sh1.26 billion to the CDF, which was established in 2003, and has been touted as the cornerstone for devolution.

The amount was gradually raised to about Sh18 billion in the current financial year.

It comprises an annual budgetary allocation, equivalent to 2.5 per cent of the government’s ordinary revenue, and is managed through four committees.

The study, which used both primary and secondary methods in data collection, exposes the misuse of taxpayers’ money in funding ghost projects or those poorly conceptualized or designed.

Also lost or mismanaged is Sh78,898,544, money allocated to five local authorities as Local Authority Transfer Funds in the financial year 2007/08.

“Last year we were talking about Sh276 million that was lost. This year, we are talking about an additional Sh167 million. This figure is quite astronomical,” said Mr Michael Otieno, National coordinator, National Taxpayers Association during the launch of the report at a Nairobi hotel.

In Nairobi, the study says that in Embakasi, for example, Sh37,863,560 of taxpayers’ money cannot be accounted, while Sh4,973739 is listed as ‘wasted’ to badly implemented projects, in the financial years 2006/07 and 20007/08.

Embakasi, which is one of the biggest and most populous constituencies, according to the report, has so far received a total of Sh144,626,409 as CDF funds from financial year 2003/04 to 2007/08.

One of the ghost projects in Embakasi is the non-existent Ruai Hospital, which has gobbled Sh1 million, “with nothing to show for” according to the report.

Another non-existent project in the constituency is the Mukuru foot bridge, which though the local status report says Sh1 million has been spent, “the work is stated to have not started”.

“Whereas it is alleged that the money was transferred to Reuben Primary School, there is no proof of reallocation,” the Embakasi report card adds.

The other one is the Dandora/Mailisaba foot bridge, which by the time of the study, no CDF amount had been spent on it, despite allocations amounting to Sh1.3m in the two financial years under study.

“It is alleged that the funds were reallocated to Tena Secondary School but there is no proof of reallocation,” it adds.

Makadara, listed as the worst of the 17 constituencies surveyed in the financial year 206/07, cannot account for Sh30million, while Sh5.7m already spent is listed as ‘wasted’ on badly constructed projects in the two financial years under study.