A number of county governments are under investigation by the
Treasury for falsifying their revenue collection figures after an audit
revealed a mismatch between expenditure and cash generate.
Treasury for falsifying their revenue collection figures after an audit
revealed a mismatch between expenditure and cash generate.
An
audit of bank statements and expenditure returns by the Controller of
Budget Office revealed that spending in the past three years exceeded
their total own source revenue (OSR) as well Exchequer releases from the
County Revenue Fund (CRF) to operational accounts.
audit of bank statements and expenditure returns by the Controller of
Budget Office revealed that spending in the past three years exceeded
their total own source revenue (OSR) as well Exchequer releases from the
County Revenue Fund (CRF) to operational accounts.
“Such
violations suggest that OSR is being spent at source. The Controller of
Budget has analysed counties and identified those where not all OSR is
‘swept’ into respective CRF accounts” the Treasury said in its Budget
Policy Outlook statement for 2017.
violations suggest that OSR is being spent at source. The Controller of
Budget has analysed counties and identified those where not all OSR is
‘swept’ into respective CRF accounts” the Treasury said in its Budget
Policy Outlook statement for 2017.
The law stipulates
that the total revenue collected by all counties be distributed
equitably in accordance with a resolution approved by Parliament.
that the total revenue collected by all counties be distributed
equitably in accordance with a resolution approved by Parliament.
Revenue without approval
Several counties were, however, found to have directly spent revenue without approval.
“The
Treasury is investigating these violations, and legal and
intergovernmental mechanisms will be pursued to help resolve challenges
in specific counties” the Treasury said without providing details on the
affected counties.
Treasury is investigating these violations, and legal and
intergovernmental mechanisms will be pursued to help resolve challenges
in specific counties” the Treasury said without providing details on the
affected counties.
This came as Treasury data showed
that revenue collection by counties dropped by Sh1.2 billion in the nine
months to March compared to a similar period last year, pointing to
possible borrowing by the devolved units to finance some of their
operations.
that revenue collection by counties dropped by Sh1.2 billion in the nine
months to March compared to a similar period last year, pointing to
possible borrowing by the devolved units to finance some of their
operations.
“The
Treasury is investigating these violations, and legal and
intergovernmental mechanisms will be pursued to help resolve challenges
in specific counties” the Treasury said without providing details on the
affected counties.
Treasury is investigating these violations, and legal and
intergovernmental mechanisms will be pursued to help resolve challenges
in specific counties” the Treasury said without providing details on the
affected counties.
This came as Treasury data showed
that revenue collection by counties dropped by Sh1.2 billion in the nine
months to March compared to a similar period last year, pointing to
possible borrowing by the devolved units to finance some of their
operations.
that revenue collection by counties dropped by Sh1.2 billion in the nine
months to March compared to a similar period last year, pointing to
possible borrowing by the devolved units to finance some of their
operations.