A damming report by the Senate has exposed how counties wasted more than Sh298 billion in three years.
In the latest fiduciary risk report by the Senate County Public Accounts and Investment Committee (CPAIC), senators censured governors for the loss of the funds -- which translate to approximately 5.4 per cent of the country’s economic growth -- due to misapplication and misappropriation.
According to the report, the unexplained audit queries in 2012-13 stood at Sh2.4 billion. In the next financial year, it increased to Sh83.24 billion and by the end of 2014-15, it had more than doubled to Sh298.45 billion.
Misapplied resources
The alleged Sh298.4 billion embezzled is the equivalent of nine Thika superhighways, a new Standard Gauge Railway (SGR) from Mombasa to Nairobi or the entire economy of South Sudan, wiped out in a single financial year.
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The fiduciary risk report released by CPAIC, which is chaired by Homa Bay Senator Moses Kajwang, examines the extent to which public resources are misapplied and the lack of achievement of value for money when public resources are applied.
The questionable expenditure, as per the report, were mostly attributed to pending bills, unaccounted expenditure, under expenditure, under-reporting of revenue, irregular payments among others.
“If Sh298.45 billion is injected into the economy in the current financial year and utilised efficiently in productive sectors with no single wastage, it could actually help the economy achieve double digit growth of 10.9 per cent,” reads part of the report.
During the 2014-15 financial year, the Senator Kajwang-led committee noted that there were irregular payments worth Sh11.45 billion in which ex-Garissa Governor Nathif Jamah’s administration made irregular payments of approximately Sh3.37 billion, having grown from Sh44 million recorded in the previous financial year.
Similarly, Governor Ali Roba (Mandera) was also faulted for irregular payments worth Sh2.07 billion while Muranga’s Mwangi Wa Iria’s was Sh1.02 billion having grown from Sh144.89 million and Sh74.89 million respectively recorded during the 2013-14 financial year.
Ex-Nairobi Governor Evans Kidero’s administration irregularly paid Sh252.9 million, Kisii Sh465.2 of which Sh37.7 million was used to procure curtains and shears through split procurement and a Sh10.1 million tender awarded to non pre-qualified suppliers. Kakamega Governor Wycliffe Oparanya was criticised for spending Sh511.3 million for tenders worth Sh112.5 million for road maintenance and Sh372.6 million for education support programmes that disregarded procurement regulations.
Travel and luxury
Likewise, Kisumu County is on the receiving end for Sh243.7 million expenditure on irregular payment made, where Sh20.9 million was incurred for the governor’s full board accommodation, car hire and other hotel services.
Ex-governor Jack Ranguma’s administration also took a loan of Sh13 million to pay for a safari for Siaya county assembly members, thus incurring interest worth Sh1.1 million. Former Nyandarua Governor Daniel Waithaka’s administration made an irregular payment of Sh841.9 million, in which Sh658 million was spent without procurement plans, leading to substandard work.
In Siaya County, Cornell Rasanga is in a spot over a Sh254.7 million irregular payment where sums worth Sh167.9 million was incurred without carrying out tender advertisement or the constitution of a technical or financial committee or even the awarding of a tender to a contractor who did not bid according to tender minutes.
“These cases represent lack of adherence to procurement requirements, and could be an indication of corruption . They should therefore be investigated and prosecution be carried out on case by case basis,” the committee recommends.
