Audit report reveals massive rip-off in ministries

Millions of shillings meant for various projects in Nyanza and Western provinces have been misappropriated, according to a report by the Controller and Auditor General.

The latest audit report indicates the money was siphoned off through irregular cheque encashments, irregular cash withdrawals, unsupported expenditures and unaccounted purchases.

The ministries affected include Roads, Agriculture, Health and that of State in charge of Provincial Administration. The report indicates that records at the Masaba District treasury revealed that four cheques amounting to Sh276,100 purportedly payable to three suppliers between January and April 2008 were prepared and entered in the cash book.

However, examination of relevant bank statements revealed that all the four cheques were cashed at the bank by ‘self’ under some unclear circumstances.

At the Masaba District road engineer’s office, examination of records with respect to a bank account held at the Kenya Commercial Bank, Kisii branch, revealed that various cheques in amounts totalling Sh4,899,310.40 payable to a number of suppliers and to the Commissioner of Value-Added Tax (VAT) were posted in the cash book during the year.

“These cheques were, however, encashed at the bank with remarks “self” on the bank statements, implying that an officer at the Road Engineer’s office or District Treasury received the cash,” it adds.

No evidence has been provided to confirm that the sum of Sh4,899,310.40 was eventually paid over to and signed for by the respective payees, and indications are, therefore, that the amount may have been misappropriated.

Examination of expenditure records at the Rachuonyo District Commissioner’s office revealed that the DC was paid Sh675,000 for security operations and related activities during the year.

The report, however, says no supporting documents or other records were availed to indicate the nature of expenditure and operations or activities against which the amount was spent.

An audit conducted at the Rachuonyo District Hospital on the Healthcare Facility Improvement Fund in March 2008 and reviewed in August 2008 disclosed that revenue collections totalling Sh2,281,052 in respect of the Improvement Fund at the district hospital had not been surrendered or accounted for as at June 30, 2008.

According to information available, the revenue balance of Sh2,281,052 was represented in the books of account by IOUs, cash sales and cash shortages.

In Gucha, examination of records at the DC’s office revealed that various goods totalling Sh784,411.50 were purchased during the year 2007/2008.

Related records

However, the goods do not appear to have been taken on charge in the respective stock ledgers and other related records. As a result, it has not been possible to confirm whether the goods were received, recorded and properly accounted for.

Examination of records maintained at the Gucha District Works office in respect of an account held at Kenya Commercial Bank, Kisii branch, revealed that one cheque for Sh1,317,333 payable to the Commissioner of VAT and another for Sh500,000 payable to a supplier were in June 2007 posted to the cash book.