Nairobi County Assembly to probe Sh76m transferred to unknown people

A session of the Nairobi County Assembly. Speaker Alex ole Magelo has given the Public Accounts Committee Chairman Robert Mbatia two weeks to establish how over Sh75 million was transferred to unknown people from county accounts. FILE PHOTO | NATION MEDIA GROUP

What you need to know:

  • Speaker Alex ole Magelo has given the Public Accounts Committee two weeks to establish who the monies were transferred to and the purpose for the transfer.
  • On Tuesday it was revealed that Sh70 million was moved from Nairobi County Emergency Fund account through Citi Bank to unknown recipients on September 9, 2014.
  • A further Sh5 million and Sh1 million were also transferred to separate accounts believed to be foreign in a similar manner.
  • According to PAC chair Mrs Lillian Ndegwa, the County Secretary, Mr Steve Osiro Head of Treasury and Chief Finance Officer Jimmy Kiamba are signatories to the account.

A Nairobi County Assembly committee has been asked to probe illegal transfer of money from a county account to unknown people.

Speaker Alex ole Magelo has given the Public Accounts Committee Chairman Robert Mbatia two weeks to establish who the monies were transferred to and the purpose for the transfer.

This came after revelations were made during PAC hearings on Tuesday that Sh70 million was moved from Nairobi County Emergency Fund account through Citi Bank to unknown recipients on September 9, 2014.

A further Sh5 million and Sh1 million were also transferred to separate accounts believed to be foreign in a similar manner.

Mr Mbatia told journalists that the Committee had asked the Kenya National Audit Office to carry out a forensic audit which will be delivered in two weeks.

He said the committee would summon the signatories to the account to explain why they had made the transfers.

According Mrs Lillian Ndegwa, the County Secretary, Mr Steve Osiro, Head of Treasury and Chief Finance Officer Jimmy Kiamba are signatories to the account.

BANK STATEMENTS SCRUTINY

The Committee discovered the illegal transfers during scrutiny of bank statements from the County Executive while probing irregular financial dealings at the county.

“When we questioned the County Finance Executive Gregory Mwakanongo said he did not even know of the said transactions and from his reaction he was shocked,” Mr Mbatia said.

The emergency fund account is apparently operating illegally as it was opened unilaterally by the executive on August 31, 2013.

County assembly members accused the officials of siphoning public funds through hidden accounts.

Mr Mwakanongo denied knowledge of the clandestine accounts.

Meanwhile Speaker Magelo complained that the county executive had ignored letters asking for funds to run the assembly.

Mr Magelo directed the Assembly Budget and Appropriations Committee to report on the matter on Tuesday next week.

He stated that in January the county as only given Sh80 million for salaries and operations even though the county received a whooping Sh2 billion in local revenues.

“By June, we will only have received Sh1.2 billion out of the 1.9 billion we budgeted for. So I wonder where the Sh0.7 billion will go to and who will pocket it,” he said.

He accused Mr Mwakanongo of failure to remit a percentage of total revenue based on the assembly’s budget adding that several attempts to reach him including through a letter dated February 19, 2015 were unsuccessful.