Auditor General Edward Ouko questions transfer of cash to counties

The Auditor General Edward Ouko has criticised the Ministry of Devolution for the transfer of Sh1.9 billion to county governments, which had not been budgeted for.

"The ministry did not adhere to the budget provisions and no explanations and mitigating measures were provided. Consequently, the propriety of the amount could not be confirmed," says Mr Ouko.

In his report for 2013-2014 financial year, Ouko says the ministry acquired non-financial assets without disclosing the classes to the tune of Sh8 billion against a budget of Sh11.3 billion.

Members of NYS arrive in Town Centre to guard and ensure safety on the roads as United States President Barrack Obama opens the Global Enterprenuership Summit. (PHOTO:ANGELA MAINA/STANDARD)

"The supporting payment vouchers for the assets were not provided including a summary of fixed assets register," said Ouko.

He wants the ministry to explain why the National Youth Service (NYS) non-current assets comprising commercial trucks (Sh834 million), small vehicles (Sh166 million) and plant machinery (Sh1.2 billion) have not been re-valued and others depreciated.

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"No reason has been provided by the management's failure to re-value and depreciate the assets," noted Ouko.

The auditor also questions why the ministry transferred Sh2.8 billion to other Government entities, which was not budgeted for.

According to Ouko, the transfer of money to the Ministry of Land, Housing and Urban Development has not been supported and therefore cannot be confirmed.

The auditor is also seeking an explanation on the unauthorised lending of Sh124 million to the NYS withdrawn from the Mechanical and Transport Fund at Kenya Commercial Bank by the ministry.

"The money had not been refunded to the fund as at 27 April 2015. It appears there is no documented policy or authority given to borrow from the fund," notes the report. Ouko says the fund lost Sh138 billion for the year ended June 30, 2014.