Ouko: Sh200m CDF cash most likely stolen

The auditor-general has exposed possible fraud running into more than Sh200 million in the Constituency Development Fund (CDF) expenditure from over 30 constituencies.

This comes at a time when the National Assembly has shown reluctance to allocate money to audit public funds given to the 290 constituencies, potentially shielding recent expenditure from scrutiny.

Since 2003 when CDF was introduced, MPs have been patrons of the fund but they amended the law in January 2013 to include themselves in CDF committees as ex-officio members, giving them greater say. But in February this year, the High Court declared CDF unconstitutional and asked the MPs to correct the defective legislation within a year. 

The auditor’s reports covering the financial year 2013/2014 largely showed irregular payments and lack of supporting documents for various expenditure, including imbalances between financial statements and supporting materials.

BURSARY PROJECTS

Funds allocated for various bursary projects appeared to have been targeted for misappropriation, according to the reports prepared by Auditor-General Edward Ouko.

Take Yatta Constituency; up to Sh34 million of receipts and payments is reflected under “other grants” and “other payments”, with Sh11 million set aside for bursaries. But auditors discovered that the CDF committee did not present cheques for Sh10.3 million awarded to bursary beneficiaries in the constituency.

Further, there was an imbalance in the statement of receipts which reflects Sh42,940,110 against cashbook records of Sh40,743,520.

The constituency is represented by Mr Francis Mwangangi.

And the audit reports on CDF accounts in Kibra, Kamukunji, Ruaraka and Embakasi North in Nairobi County show that Sh36.8 million could have been lost or irregularly used in 2013/2014.

In Kibra, Sh5.8 million was spent but there were no supporting documents. Despite showing the CDF had a surplus of Sh4.9 million, the accounts did not show how much of the constituency’s funds were from Lang’ata, the electoral area from where Kibra was hived off before the 2013 General Election. The constituency is represented in Parliament by ODM’s Ken Okoth.

In Kamukunji, the auditors found a strange case where needy students had failed to present their bursary cheques to schools, resulting in the fund not spending Sh7.5 million. Of this amount, Sh604,457 was in the form of stale cheques.

Kamukunji CDF also spent Sh14.9 million to put up sheds at Maziwa Chicken and Vegetable Market. The sheds were, however, brought down later. The money was effectively wasted. The constituency is represented by TNA’s Yussuf Hassan.

In Ruaraka, whose MP is Mr Tom Kajwang’ (ODM), the auditors did not get documents to support the expenditure of Sh1.4 million. In their statement of meeting allowances and other grants, the committee appeared to have mis-stated Sh850,000.

In Embakasi North, Sh1.5 million was used to buy a bus for Kariobangi North Girls Secondary School but supporting documents were not attached to the payment documents, the report says. The constituency also had problems with bursaries, as cheques for Sh1.8 million were not presented, while others for Sh1.2 million were cancelled and reversed. The fund eventually failed to disburse Sh4.3 million.

The constituency is represented by Mr James Mwangi Gakuyu (TNA).

Kajiado Central wrote cheques for Sh534,639 for bursary fund but these were never presented. The area was represented by Mr Joseph Nkaissery (ODM).

Nandi Hills (represented by MP Alfred Keter, URP) is also on the spot for alleged irregular reallocation of Sh2.5 million to unauthorised school projects and diversion of Sh500,000 meant for a road project.