Billions of CDF cash stolen, says auditor

What you need to know:

  • The report by the Office of the Auditor-General reveals misuse of huge sums.
  • In Mutito, then under Mr Kiema Kilonzo, the audit report has raised queries on the expenditure of Sh960,000 for procurement of medical supply.

Some 100 current and former MPs may have presided over the plunder of billions of shillings allocated to the Constituency Development Fund between 2012 and 2013, an audit report shows.

The report by the Office of the Auditor-General reveals misuse of huge sums through violation of procurement regulations, single-sourcing, diversion of funds and unsustainable projects.

The revelation emerged as Lugari MP Ayub Savula initiated an attempt to amend the law to increase CDF allocation from 2.5 per cent of the national Budget to 10 per cent.

In Amagoro constituency, then under Busia Governor Sospeter Ojaamong, auditors detected an expenditure of Sh2.6 million without approval from the CDF board.

Other payments of Sh1.7 million were made without supporting documents, according to the report.

In Mutito, then under Mr Kiema Kilonzo, the audit report has raised queries on the expenditure of Sh960,000 for procurement of medical supply.

Kirinyaga Central constituency, which was represented by Mr Joseph Gitari, is cited for failing to comply with procurement laws and spending Sh22 million on illegal projects.

In Kisumu Rural, which was under Prof Anyang’ Nyong’o, who is now a senator, the auditor said Sh5.8 million was paid to two people in unclear circumstances.

The report further said the constituency allocated Sh11 million to projects that were never advertised.

“Contractors were single-sourced by the CDF committee directly without involvement of project management committees, and projects were not supervised by the Public Works office.”

Some Sh4 million allocated to a new institution known as Prof Anyang Nyong’o Secondary School, according to the report, cannot be accounted for.

Prof Nyong’o’s constituency further spent above the six per cent ceiling on administration and operation of the CDF office, which was restricted to Sh5.7 million in the year under review.

Instead, Sh9.7 million is reported to have been spent without explanation.

COULD NOT PRODUCE DOCUMENTS

Kanduyi constituency, whose MP was Mr Alfred Khangati, paid Sh1 million to a supplier, for fuel, but the CDF office could not produce documents to support delivery.

“An official of the CDF was paid in cash a total of Sh575,000 for the purpose of purchasing office equipment and furniture.

“However this amount could not be accounted for during the audit inspection,” the report says further.

In Shinyalu, it reveals irregular and unaccounted cash withdrawals made to two officials for undisclosed expenditure.

“Between December 2012 and January 2013, cash withdrawals amounting to Sh3.8 million were made to two officials of the CDF, with the secretary getting Sh3 million and the Treasurer Sh800,000.”

The auditor also raised queries regarding Sh19.4 million allocated for the construction of a medical training college in Keiyo North constituency.

In Kapenguria, Sh5.2 million was awarded to a contractor and paid in full the same day the contract was signed.

In addition, the auditor has questioned the expenditure of Sh26.5 million on the purchase of four 51-seater buses for four schools during the period under review.

“The value of the buses exceeded the limit for use of request for quotations as procurement method, and no reason has been provided for not using an open tender.”

In Taita Taveta, the allocation of Sh37 million from the CDF account to fund the construction of a Sh345 million medical college was cited.

The CDF office in the constituency disbursed the funds to the project, even though the parent ministry had not approved it.

The state of Sh136 million allocated to Matuga constituency, then under Mr Chirau Ali Mwakwere, could not be ascertained by auditor.

In Tigania West, the allocation of Sh1 million as bursary for the training of boda boda operators has been questioned.

Other constituencies where the auditor raised queries include Gichugu, Ndia, Mathioya, Kigumo, Maragwa, Subukia, Bureti, Ainamoi, Bomet, Chepalungu, Rongai, Gatanga, South Mugirango, Rangwe, Nyando, Alego Usonga, Mosop, Kacheliba, Isiolo North, Saku, Dujis and Limuri.