Kidero on the spot over missing Sh21bn in Nairobi - Daily Nation

Evans Kidero on the spot over missing Sh21 billion in Nairobi County

Sunday March 11 2018

Audit

Mr Evans Kidero addresses journalists at St Mark’s ACK in Wetlands on August 13, 2017. An audit shows his administration failed to account for more than Sh21 billion when he was leaving office. PHOTO | DENNIS ONSONGO | NATION MEDIA GROUP  

By COLLINS OMULO
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At least Sh21 billion was not accounted for by former Nairobi Governor Evans Kidero when he left office, according to an audit by KPMG.

The damning report, which will be handed to Governor Mike Mbuvi Sonko this week, shows that Sh21.89 billion was not accounted for in the handover report when he was assuming office in August 2017.

“More than Sh21.89 billion in payments was not recorded so we cannot know who was paid, and 7,346 manual revenue collection receipt booklets were deleted from the digital system,” KPMG Associate Director in charge of Forensics Mark Bunyi said.

PENDING BILLS

The auditors analysed the handover report from the former administration and concluded that it left behind a broken system.

The audit which covered revenue, debts, cash and banking as well as assets also found that the handover report under-declared the county’s debts by more than Sh1.5 billion.

“We found Sh1.5 billion more pending bills when we checked individual departments, which was different from what was in the handover report. This means the liability is more,” head of Risk Consulting Brian De Souza said.

BANK ACCOUNTS

The audit also revealed that the former county administration irregularly opened 32 accounts in commercial banks, against the Public Finance Management Act.

Thirteen of accounts were not declared in the handover report. Five of them had more than Sh120 million at the time of the audit.

When the banks were contacted, six refused to respond to queries on the accounts opened in the city county’s name.

The audit also found that Sh22.8 billion in taxes was not remitted, including Pay As You Earn and pension deductions.

LOOPHOLES

Mr Kidero's administration also failed to declare 110 vehicles owned by the county government.

KPMG head of Advisory East Africa Gerald Kasimu and Mr De Souza briefed Mr Sonko on the findings on Wednesday.

The governor said he would take action against those who looted county coffers.

He also pledged to put in place measures to seal the loopholes identified in the report.

“We shall get to the bottom of this matter. All the culprits will be brought to book,” he said.