In the 2016 and 2017 financial year, staff at Tigoni Level Four Hospital in Limuru, Kiambu County, hacked systems and looted Sh9 million in revenue from the facility which has been grappling with poor infrastructure and inadequate equipment, an audit shows.
The revelation is contained in a report by Auditor-General Edward Ouko, who has also exposed possible embezzlement of millions of shillings during the year when the county government was still under former governor William Kabogo.
Although the county said the people who hacked the system had refunded the money, auditors found no proof that the money was recovered since no documents were provided.
The report also revealed that the county could not explain how it paid Sh228.5 million salary arrears to its staff during the year that ended on June 30, 2017.
Statements of receipts and payments by the county reflected an expenditure of Sh4.8 billion in respect to compensation of employees, out of which Sh228.5 million was paid as salary arrears.
But the basis of the payment and supporting documentation, including salary pay change advice and appropriate authority, were not provided for audit review, and therefore the validity of salary arrears could not be confirmed.
Further, after reviewing the county payroll, auditors established that 262 employees were under-taxed, resulting in unremitted tax of Sh5 million.
In addition, 19 employees were not taxed, resulting in non-remittance of PAYE of Sh434, 431.
Mr Ouko also flagged Sh145 million paid as part of the implementation of Sh1.17 billion road projects, which are under the national government.
The investigators also noted that there was no evidence that the projects were taken through public participation, raising queries on how they were identified, awarded and implemented.
Further, there is no explanation on why the county undertook the projects which are not devolved.
One of the projects is the rehabilitation of Ndumberi-Githunguri Road, which is under the Kenya Urban Roads Authority.
The project began in 2013 at a cost Sh340 million.
During the 2016/2017 financial year, the county spent Sh32 million as part of the payment.
Another project flagged by the auditors is the expansion of Thika Town Entrance-Garrissa Road Junction, whose contract was awarded on June 25, 2015 at a cost of Sh221 million, Sh80 million of which was paid during the year under review.