Senate County Public Investments and Special Funds Committee has summoned former Kitui Governor Charity Ngilu to answer audit queries over allegations of embezzlement of millions of shillings at the Kitui County Textile Centre (Kicotec).
The Committee Chairman and Vihiga Senator Godfrey Osotsi said they want Ngilu, former top management and other officials who signed financial statements for the centre between 2019 and 2022 to shed light on how the funds were spent.
Osotsi also directed the Ethics and Anti Corruption Commission liaison officer attached to the committee and a senior official involved in investigations at the agency to be present during the meeting scheduled for September.
“This Senate committee has resolved to summon former Kitui Governor Charity Ngilu, former top management officials and all officials who signed financial statements of the Kitui County Textile Centre in the financial years 2019/2020, 2020/2021 and 2021/2022,” he said.
He said the textile centre had serious management and financial challenges that negatively affected its operations, financial health and sustainability and it was prudent for Ngilu who served as governor between 2017 and 2022 to appear before the committee next month to answer the audit queries.
Governor Julius Malombe, who appeared before the committee yesterday is required to submit a report on the status of the textile centre by the Board of Directors and any other relevant information within three days from the date of the meeting.
The committee directed Malombe to submit names and contact details of the Board of Directors who were responsible for the centre during the fiscal years under review as well as names and contact details for the people who signed the financial statements for the same financial years.
“This Senate Committee requires Governor Malombe to submit names and contact details of the two chief officers who also sat on the board that had been designated as mandatory and alternative signatories of Kitui County Textile Centre’s bank accounts,” said Osotsi.
According to the Auditor General report for the financial year ending June 2022, there were anomalies in the payment of Sh49.1 million as salaries and wages to casual employees while in the previous financial year, the centre was flagged over Sh56.7 million in irregular payment of casual wages where the casual employees signed no contracts.
The Auditor General report pointed out that the rates applied for the wages were contrary to those recommended by the Salaries and Remuneration Commission and some cases of casual employees being engaged continuously for more than three months contrary to Section 37 of the Employment Act, 2007.
Kicotec is also faced with current liabilities of Sh90.7 million which increased from Sh68 million from the previous year amid decrease in revenue from Sh203 million in 2021 to Sh78.6 million in 2021.
There were audit queries on weaknesses in payment processes where payment vouchers lacked details of those who prepared them and were not serialised for control purposes, there was no provision for approvals in the payment vouchers and the paid vouchers were not stamped to avoid incidents of double payments.
There were also incidents of cancellation of sales invoices with no evidence of approval or explanation for cancellations, there were no details of cheque numbers, date of payment and accounts where payments were charged, hence it is not possible to trace the payments to the cashbook and to the bank statements.
The report also flagged anomalies in Board of Directors operations revealing several anomalies including lack of personal files for individual board members, board meeting notices did not provide for the 14 days as required and Board minutes were not signed, approved and circulated.
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