Audit report reveals irregular usage of Sh141m by county

Siaya County government spent Sh141.3million without following the law, an audit report shows.

Auditor-General Edward Ouko said the county government purchased good and services unprocedurally.

Some of the services procured during the 2014/15 period included internet services, insurance cover for motor vehicles, garbage bins and a grader, as well as the construction of a perimeter wall and offices for the governor.

According to the report, during the year under review the county single-sourced and paid Sh18 million to a firm to provide internet services, with an additional Sh18 million to be paid annually for six years for the service.

"The services were single-sourced as opposed to procurement through an open tender. Evaluation and awarding minutes were not made available for audit review."

"In the circumstances, it was not possible to confirm if the county government obtained value for the procurement of the internet services," Mr Ouko says.

On the grader, while the county, through an open tender paid Sh21.8million for the supply, it only did so to two suppliers recommended by the Assembly Transport Committee.

This, the auditor notes, flouted the law on tendering processes.

In addition, during the year under review, the county government had outsourced most of the road projects rendering necessity of procuring the grader redundant, the report adds.

Mr Ouko says there was also payment of Sh25 million to an insurance broker for provision of motor vehicle group life and other insurance covers.

Further, there was the acquisition of assets worth Sh38.7 million for the county assembly refurbishment of non-residential buildings which is not supported by either an analysis or documentation.