Auditor says Migori MCAs, staff paid Sh4.8 million illegally

The office of the Auditor General wants Migori County Assembly members and a section of the staff to be surcharged for Sh4.8 million illegally paid as allowances.

In his latest report on the financial operations of the county as well as the defunct local authorities, Auditor General Edward Ouko said the officials were paid the money in 2013 as night-out allowances while attending a seminar in Nakuru.

Mr Ouko regretted that the payments were made while the officials were all on full board at a cost of Sh3.3 million in the same hotel, leading to double payment.

“Examination of payment voucher nos. PV 959 & PV 1074 dated 28 June 2013 in respect of travelling and accommodation and full board payment revealed that they were paid night-out allowances while at the same time they were on full board,” read the report.

FOLLOW THE BUDGET

“The budget must be followed and if re-allocation has to be done, it should be done by following the laid down procedures. Expenditure should be incurred within the budget provisions. Recoveries of Sh4,825,000 should therefore be made from both staff and Assembly members,” recommended Mr Ouko.

The audit covered transactions for the County Executive and County Assembly and the former Municipal Council of Migori, Municipal Council of Kehancha, County Council of Migori, Town Council of Awendo and Town Council of Rongo for the period January 1 to June 30, 2013, and took into account transactions before, during and after the transition period.

It was done to verify county government preparedness to receive and utilise devolved funds before, during and after the transition period in addition to the transfer of assets, liabilities and staff from the four defunct local authorities.

According to the report, the county government was also put on the spot for paying Sh2,375,996 to purchase various items that had not been recorded so as to show they were received and issued out for use.

The items could not be traced in stores, as no ledger cards were made available, though the items were received using S13 cards.

PROCUREMENT PROCEDURES

Procurement procedures require that while receiving purchases, goods and services are recorded through S13 and subsequently entered in S3 cards then stored in the stores for further issuance to departments for subsequent use.

The report states that the defunct councils continued operating the accounts, some of them to date in total disregard of the County Governments Public Finance Management Transition Act, 2013, which required that the bank accounts be closed and reconciliations done within three months.

The creditors’ balances amounting to Sh23,156,332 handed over to the county government by the defunct County Council of Migori were not supported by creditor’s registers, original contract agreements, invoices, delivery notes, statements, schedules and payrolls.

According to the Auditor General’s office, records provided indicate debtors’ balances amounting to Sh7,187,942 were handed over to the county government by the defunct County Council of Migori.

“Outstanding debtors’ balances were not supported by listings, debtors’ registers, copies of invoices and demand notices. The outstanding debtors’ balances have not been incorporated in the books of the county government,” reads the report.

RECEIPT BOOKS

“A stock take of unused receipt books held by the defunct local authorities at the time of changeover to the new series of receipt books by the county government was not done. This omission is likely to have opened room for possible misappropriation of receipts from debtors,” it goes on.

The County Council of Migori, the report adds, also irregularly recruited 22 personnel without the authority of the then Ministry of Local Government and approval from the finance committee.

Due to this irregular recruitment, the Migori County government paid Sh2,059,330 between the months of April to June 2013.

“The 22 new employees were taken over by the County Government of Migori and subsequently added into the payroll. Later on (July 2013), the county government stopped salaries of 17 employees when it discovered that they were irregularly employed.”

LAPTOPS

Three laptops purchased by the defunct Municipal Council of Kehancha could not be physically verified as it was explained that they were issued to former staff, who upon transfer never surrendered them.

Mr Ouko said from their observations, it was clear that the process of the taking over of assets and liabilities, including the staff of the former councils, was not properly handled due to apparent lack of leadership by officials of the Transition Authority who had the responsibility to ensure a smooth and seamless transition process.

“The county government should however ensure full control of functions, including revenue collection, recording and proper accounting for the same while awaiting guidance from the national Treasury based on the accounting and reporting systems to be developed by the Public Sector Accounting Standards Board,” he said.