Millions feared lost after audit reveals procurement irregularities at Nema

An audit carried out at the National Environment Management Authority (Nema) two months ago has unearthed serious violations of procurement and financial management rules.

As a result, there are fears that this might have led to the misappropriation of millions of shillings of public funds.

In September 2014, Environment and Natural Resources Principal Secretary Richard Lesiyampe ordered the audit in key departments at the Nema head office and asked to be served with a report before October 17, 2014.

“In order to strengthen the efficiency and effectiveness at Nema, a team of internal auditors from the ministry will undertake an audit of the authority for the financial year 2012/2013 and 2013/2014,” the PS said.

He instructed that an audit be done on the financial management system to establish the existence of internal control systems as well as management of external sources of revenue, procurement procedures and asset inventory.

And in a move seen as an effort to correct malpractices in the finance and human resource departments, Nema Director-General Geoffrey Wahungu has made changes to streamline procurement procedures and cut down on wasteful expenditures besides ensuring that workers are hired on merit.

Mr Wahungu has outlawed procurement of goods and services through the use of petty cash, and cut down on numerous retreats by staff that were allegedly being used as a conduit to pay out money as per diem and lunch allowances.

“There will be no payment for lunch at retreat or workshop venues where officers have been facilitated on per diem as this amounts to double payment,” he says in a memo to heads of departments dated December 1, 2014.

He added that each retreat session should have a maximum of 10 participants.

NO SPECIAL DUTY ALLOWANCE

“There will be no payment of special duty or acting allowance when the holder of the position is still in office.

"These allowances will only be paid when an office is declared vacant.

“The current practice of paying officers appointed to hold brief when their supervisors are away on short term will cease,” he said.

In a pointer to the rot in the human resource department, Mr Wahungu has also directed that the hiring of casuals be done by a committee chaired by the deputy human resource and administration director.

On Tuesday, Mr Lesiyampe said operations at the environment agency had improved but added that there were a few changes that still needed to be worked on.

“We are looking at implementing the full report even as we start the New Year,” he told the Nation in a telephone interview.

Nema has been in the news over the past one year after corruption allegations were levelled against senior managers.

In early 2014, businessmen in Mombasa accused top Nema officials of demanding bribes before issuing them with licenses.