Audit reports reveal financial rot in Kitui, Machakos counties

As reported in the previous year, audited financial statements for 2016/2017 financial year in Kitui County reflected variances between various expenditure and respective supporting schedules figures.

These variances had not been rectified, thus affecting the opening balances for the year under review.

A review of the payroll for the year under review indicated that a total of 20 bank accounts were each shared by two Early Childhood Development Education (ECDE) teachers, resulting in 40 tutors sharing various bank accounts.

BANK ACCOUNTS

It was not explained how the 40 teachers can share various bank accounts, and how they operated the shared bank accounts.

A review of the July 2017 manual payroll revealed that 312 Kenya Revenue Authority Personal Identification Numbers (PINs) were each shared by two ECDE teachers, resulting in 624 tutors sharing personal identification numbers.

Besides, a comparison of the manual payroll for ECDE teachers for June 2018 with the Integrated Personnel Payroll Data payroll for June 2018 revealed that 15 personnel were sharing similar KRA pins. No explanation was given regarding this irregularity.

Insurance cost totalling Sh80 million was paid to various insurance companies.

However, no supporting evidence, including procurement documents and opening, evaluation and award minutes, were presented for audit verification.

CONTRACTORS

A contractor was paid Sh9.5 million for the renovation and completion of various works in Kyangunga Dispensary. The work was supposed to be completed by March 2017. However, during physical verification on October 11, 2018, it was observed that the works had not been completed and the contractor was not on site.

Another contractor was paid Sh23 million for the construction of an amenity ward at Kitui Referral Hospital. But the project had stalled almost at the slab level.

The county further paid Sh41 million to a contractor for the construction of a modern outpatient block at the hospital. Physical verification revealed that the completion of the building had stalled.

HEALTH CENTRE

The county paid Sh5.2 million to a contractor for the construction of a theatre at Ikutha Health Centre.

At the time of the audit verification on October 10, 2018, the theatre was incomplete as drainage works, electrical works, and other finer finishing had not been done. The contractor was not on the site.

The county Executive paid Sh32 million for construction of a maternity ward at Kitui Referral Hospital. Physical verification revealed that the project had stalled.

MACHAKOS

In Machakos County, as reported in the 2015/2016 and 2016/2017 financial years, the county government procured 40 units of tractors meant to assist farmers to plough their farms. Ownership documents for 14 units had not been provided for verification by June 30, 2018. Besides, the existence of 25 units had not been confirmed.

In the previous year’s report, the National Housing Corporation developed a housing scheme in Machakos comprising 25 units on behalf of the defunct Masaku County Council.

The information available from the corporation indicates that the scheme was developed through a loan to the defunct council, which was fully paid.

However, the units were later taken over by the national government under the Ministry of Housing and allocated to civil servants, who have been paying rent to the ministry.

NO EVIDENCE

However, no evidence has been provided to indicate how these houses were taken over by the ministry and what action the county Executive has taken to repossess the houses.

As reported in the 2015/2016 and 2016/2017 financial years, an undetermined number of parcels of land and buildings belonging to the county government valued at Sh961 million did not have title deeds and were prone to grabbing or encroachment.

Further, records show that 18 parcels of land recognised by the defunct Mavoko Municipal Council as public utilities in Syokimau and Numerical area had been subdivided and allocated to individuals and institutions under unexplained circumstances.

An inspection revealed that most parcels had been developed by private developers, others fenced off while a few remained vacant.

However, no evidence has been provided to confirm that the county has followed up on title deeds to secure ownership of these properties.

Besides, no documents in support of the subdivision of the 18 parcels of land allocated to the individuals/private developers have been made available for audit verification.

In March, 2018, former Auditor-General Edward Ouko gave Makueni a clean bill of health, also known as unqualified opinion, in the audit reports for 2017/18.

Mr Ouko only pointed out that the county failed to meet targets in the Executive’s own generated revenues, absorb the full budgeted amount and prepare a performance report.

He added that the county failed to implement projects earmarked for implementation.