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| Office of the Governor Nairobi County |
Nairobi county assembly is under sharp scrutiny after the auditor general’s report alleged the potential loss of hundreds of millions in the last financial year.
The report questions the management of various schemes, including car and mortgage, supply chains and salary advance systems, with the possibility that the taxpayer could have lost huge sums to private pockets or leakage due to poor management.
It says the auditor’s analysis of the assembly books revealed that Sh279,703,949 was purportedly transferred from the Car and Mortgage Scheme Fund on February 15, 2023, to the Nairobi City County Assembly vehicle reimbursement account. This was not disclosed in the county financial statement.
But assembly clerk Edward Gichana dismissed the report as inaccurate, insisting that the monies can be accounted for to the last coin and that the documentation was proper.
“We have shilling by shilling documentation on how the monies were used and the statements were given to the auditors,” he said.
Further, the motor vehicle reimbursement account balance has not been disclosed under Note 13A to the financial statements, it adds, concluding that “in the circumstances, the accuracy and completeness of the amount of Sh279,703,949 transferred from Car and Mortgage Scheme Fund could not be confirmed.”
Gichana said Sh279 million was moved from the mortgage fund to help MCAs buy cars and it was a normal procedure.
“It was to help members buy cars and was properly documented and revealed to the auditors. There is no way you can take the government money and misuse or mishandle it without dire consequences,” he said.
The report said the statement of assets and liabilities availed by the management supposedly reflects outstanding imprests and advance balance of Sh258,051,837, comprising the balance of Sh255,989,837 and advances balance of Sh2,062,000.
However, the advance in question includes four staff members amounting to Sh612,000.
“Further, Management did not explain why imprests were not surrendered within seven days after return from fieldwork. ln the circumstances, the accuracy of the outstanding imprests and advance balance of Sh258,051,837 could not be confirmed,” it reads.
“I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my adverse opinion.”
The report also raps the assembly management on how they handled payment for goods and services, with sampled paid-up vouchers showing that massive amounts were allegedly paid to different people whose account details were not recorded.
The report says that while the statement of receipts and payments reflects the use of goods and services expenditure of Sh636,732,521 as well as 39,521,628 in respect of marked as other operating expenses, it sampled vouchers totalling Sh4,558,964 in respect of rent expenditure.
Shockingly the “rent was paid to different persons with different account numbers contrary to the ones specified in the lease tenancy agreements.”
“ln the circumstances, the accuracy and completeness of other operating expenses amounting to Sh4,558,964 could not be confirmed,” it said, putting to doubt the integrity of the whole sum of expenses on goods and services by the assembly.
Sh2,817,000 spent on airtime cards was not officially approved.
The report says there were massive expenditures of taxpayers’ cash for domestic travels but without necessary approvals and documentation, opening the door for abuse.
Some Sh200,830,325 was used on domestic travel and subsistence. The payment vouchers totalling Sh12,010,385 were not supported by relevant documents including, original invitations and approvals, boarding passes, attendance lists, conference venue invoices and cash receipts.
“ln the circumstance, the accuracy and completeness of the domestic travel and subsistence amount of Sh12,010,385 could not be confirmed.”
Further, the assembly used Sh191,323,977 for foreign travel and subsistence.
However, payment vouchers amounting to Sh36,447,345 were not supported by relevant documents including, original invitations and approvals, boarding passes, attendance lists, conference venue invoices and cash receipts.
The auditor could not vouch for the accuracy and integrity of Sh36,447,345 purportedly used for foreign travel and subsistence expenditure.
The auditor doubted the authenticity of the assembly management’s statement on the financial standing.
“The statement of financial assets and liabilities and as disclosed in Note 17 to financial statements reflects a balance of Sh257,636,250 in respect of prior year adjustment whose nature, line items affected and other details have not been disclosed as required by the International Public Sector Accounting Standard number.
ln the circumstances, the accuracy and completeness of the prior year adjustment balance of Kshs.257,636,250 could not be confirmed.”
by GORDON OSEN