Poor transition likely to cost regions asset losses

Counties risk losing some of their assets after they ignored a requirement to take over properties owned by the defunct local authorities after the March 4, 2013, General Election.

An oversight authority has also noted that proper handing over of liabilities and staff was not done, exposing many counties to unnecessary debts and ghost workers.

The Senate County Public Accounts and Investment Committee chaired by Mr Muriuki Karue (Nyandarua, TNA) is concerned that many queries from the Auditor-General’s office revolved around failure by counties to adhere to the government directive.

The team that met Trans Nzoia Governor Patrick Khaemba on Tuesday over the county’s 2012/2013 financial accounts, appealed to governors to cooperate with auditors to fast-track accountability.

“The process of taking over assets and liabilities, including staff of the former councils, was not properly handled,” the Auditor-General’s report on Trans Nzoia County indicated.

The anomaly, according to the report, was due to laxity by Transition Authority officials who had the responsibility to ensure a smooth and seamless transition.

IMPREST ACCOUNT
Mr Khaemba said all assets and liabilities of the defunct Municipal Council of Kitale were handed over to the county government in December 2013.

However, the Senate committee noted that the county government did not open a county revenue account immediately after its inauguration in March 2013 as required by the Transitional Authority.

The county did not also close the bank accounts of the defunct local authorities or transfer outstanding balances to the county revenue account as required by law.

Mr Khaemba said they did not open the revenue account immediately because of the long time it took to identify a suitable bank.

The Auditor-General’s report also indicated that the county government operated an imprest account which was overdrawn by Sh3.75 million in June 2013, while the county’s operations account was overdrawn by Sh39.705 million.

MANAGE CASH FLOW
The governor said the overdrawn imprest was to manage cash flow for the county government and there was no malicious intention behind the transaction.

He said the overdraft was a temporary measure approved by the county assembly to pay the salaries of the defunct and incoming governments staff.

Senator Karue directed the county government to furnish the committee with records of the payments of the funds, to justify the borrowing.

The governor also has two weeks to present to the auditors documents that explain how Sh61 million received from the Transition Authority was spent.