State auditor reveals anomalies in funds use

Auditor General Edward Ouko has unearthed cases of misappropriation of public funds in constituencies.

Apart from misappropriation, Mr Ouko, in the report, also indicts the National Government Constituency Development Fund over unexplained expenditure and financial anomalies.

No logbooks

In Turkana South, Ouko has questioned the use of Sh29 million to buy three school buses. There were no logbooks for the said vehicles.

“Included in the transfers to other Government units’ amount of Sh95,934,264… is transfer to primary schools for the purchase of school buses. However, tender documents such as advertisement, tender opening, evaluation and award committee minutes, contract agreement, inspection and acceptance committee reports and logbooks were not made available by the project management committees for audit verification,” the report noted.

The report further queries the expenditure of Sh16 million in the construction of works at Nagetei and Lokapel secondary schools.

The two schools received Sh8 million each for the construction of an administration block, two classrooms, dining hall, dormitory and purchase of desks.

There were, however, no inspection reports, interim certificates, inspection and acceptance committee reports and bill on quantities were not made available for audit review.

The board is also accused of disbursing Sh21 million as bursary to students in tertiary colleges and secondary schools without showing how they arrived at the list of needy students.

“There was no evidence that the National Constituency Development Committee ratified the list of beneficiaries by the bursary sub-committee, as required by the National Constituency Development Fund,” reads the report for the year ended June 2017.

Emergency projects

The board also spent Sh3 million under emergency projects to facilitate Kraal forum at Sh2 million and sponsor 52 students at Sh1 million, in what Ouko said “do not appear to be emergency in nature”.

The report shows the Turkana South CDF board for spending Sh2.6 million on environment projects, which they could not list.

In Lang’ata Constituency, the report indicated, the approved budget was not fully implemented, even though there was a 97 per cent absorption rate.

The statement of assets and liabilities reflects net liabilities instead of net financial position of Sh3.5 million, being the sum brought forward as fund balance of Sh2.8 million and surplus of Sh665,474. No explanation was provided.

The report shows that the statement of appropriation reflects budgeted expenditure of Sh132 million against an actual expenditure of Sh129 million, resulting in an under-expenditure of Sh3.5 million.

“The financial statements on Project Management Committee bank accounts reflects balances totaling Sh8.2 million but casts to Sh9.9 million resulting in unexplained difference of Sh1.6 million,” reads part of the report.

In Ganze Constituency, the report states that the numbering of the financial statements is not sequential, as some page numbers are repeated.

“In the circumstances, the financial statements do not comply with International Public Sector Accounting Standards,” reads the report.