CDF boards not yet in the clear over use of funds

Auditor-General Edward Ouko delivers his remarks during the African Organisation of Public Accounts Committees conference at Serena Beach Resort on January 22, 2019. He has said there is poor accountability in the use of CDF cash. PHOTO | KEVIN ODIT | NATION MEDIA GROUP

What you need to know:

  • Each of the 290 constituencies gets a flat-rate figure of Sh105 million - a certain percentage going towards administrative expenses.
  • With Sh1.36 billion as the cumulative figure for the 13 constituencies, the absence of Sh571.7 million means that about Sh800 million was spent.

Constituencies seem to have become new avenues for looting as funds allocated from the national government for development projects either cannot be accounted for or simply did not deliver value for money.

Auditor-General Edward Ouko’s report on the National Government Constituencies Development Fund (NG-CDF) for the year ended June 30, 2017 shows that 13 constituencies cannot account for Sh571.7 million.

The reports of the respective constituencies were tabled in the National Assembly by Majority Leader Aden Duale and are expected to be considered by the Special Funds Committee that will report to the House.

According to the CDF Act, each of the 290 constituencies gets a flat-rate figure of Sh105 million - a certain percentage going towards administrative expenses.

GHOST PROJECTS

With Sh1.36 billion as the cumulative figure for the 13 constituencies, the absence of Sh571.7 million means that about Sh800 million was spent, even though Mr Ouko says that Kenyans did not get value for money.

Mr Ouko has listed Alego Usonga, Suna West, Homa Bay Town, Bomachoge Chache, Keiyo North, Nyatike, Uriri, Khwisero, and Rongo as some of the constituencies that have irregularly used taxpayers’ money.

The others are South Mugirango, Nyando, Kuria East and Mbita. For instance in Keiyo South, the transfer of Sh40.9 million to fund projects could not be confirmed.

There is also Sh3 million for security and Sh7 million for emergency projects that cannot be accounted for.

In Alego Usonga, the regularity of Sh42 million meant for various projects cannot be confirmed because of non-filing of expenditure returns.

EXPENDITURE

There is also Sh26.8 million meant for bursary disbursement and Sh13.2 million for construction of the CDF office block that cannot be confirmed.

Mr Ouko also noted that it has not been possible to confirm the accuracy, valuation and ownership by NG-CDF Bomachoge Chache of fixed assets worth Sh37.7 million among others.

In Suna West, the report indicates that the Sh81.9 budget was increased by Sh24.1 million. The adjustment figure was made up of unspent funds as at June 30, 2016.

In Homa Bay Town, Sh10.1 million was used for CDF facilitation, trainings, monitoring and evaluation of the constituency administrative sittings, committee allowances and purchase of assorted office items but was not accounted for.

In Suba North (formerly Mbita), the payment of Sh63.9 million for the Grading of Kipasi Chief’s camp road cannot be supported.

“Physical verification revealed that no road built by NG-CDF Mbita exists in the area,” Mr Ouko says.

OVERSPENDING

The Sh27.2 million used for the construction of a toilet and purchase of chairs and desks at Nyabera Talent Academy in Uriri constituency cannot be confirmed.

It has also not been explained why the funds were used on a private institution. Khwisero constituency overspent its budget for the year under review.

For instance, there was overspending in compensation of employees by more than 16 per cent of the budget.

In Rongo, unconfirmed rollover of funds from the previous year, incomplete works and abandoned projects worth tens of millions of public money were reported. It was a similar case in Nyando, Kuria East and Nyatike constituencies.