Sh1.6bn constituency cash unaccounted for, says Auditor-General

Auditor General Edward Ouko has questioned the whereabouts of Sh1.6 billion at the National Government Constituency Development Fund (NG-CDF), which manages the money on behalf of National Assembly members.

Mr Ouko, in his audit report for the year ending June 30, 2017, says the amount cannot be accounted for. The government is currently fighting wanton pilferage of public funds, with many senior government officials and principal secretaries arrested and charged in court.

“It has not been possible to confirm the accuracy and validity of the cash and cash equivalent balance,” Mr Ouko says in the report tabled in the National Assembly by Leader of Majority Aden Duale last week.

Mr Ouko noted that of the Sh1.6 billion, Sh332.5 million was being held at Chase Bank as an investment yet the bank was placed under statutory management by the Central Bank after it collapsed.

This means that the funds will be accessible only after the bank resumes normal operations.

FRAUDULENTLY WITHDRAWN

About Sh32.6 million is said to be held at Kenya Commercial Bank but the Auditor General could not confirm this, despite claims that Sh32.5 million was fraudulently withdrawn by the board in the 2011/2012 financial year. The amount has not been recovered, nor investigations into its loss concluded.

Despite the alleged misuse of public funds, as per the Auditor General’s report, it has emerged that each of the 290 constituencies will be allocated Sh117.9 million, up from the Sh80 million they have been receiving.

In the current financial year, Sh35 billion was set aside by the National Treasury to finance NG-CDF.

About Sh111.8 million of the money is for equitable share and Sh6.1 million is an emergency reserve shared out by the 290 constituencies from the Sh1.7 billion set aside by Treasury Cabinet Secretary Henry Rotich.

REMIT SH5 BILLION

The NG-CDF board secretariat has been allocated Sh1.5 billion, about 4.3 per cent of the total fund, which will be for administration purposes in line with the NG-CDF Act.

According to the report tabled in the House by Igembe North MP Maoka Maore, who chairs the NG-CDF committee, the office of the Clerk of the National Assembly has also expressed concerns over failure by Treasury to remit over Sh5 billion owed to constituencies.

The arrears include Sh541 million for the year 2011/12, Sh2.1 billion for 2013/14 and Sh2.3 billion for 2014/15.