Governor hard pressed to explain underutilised development funds

Governor Patrick Khaemba before the Senate County Public Account and Investment Committee yesterday. [Boniface Okendo, Standard]

Trans Nzoia County spent Sh256 million more on recurrent budget than budgeted for the financial year 2017/2018.

The Senate County Public Accounts and Investment Committee (CPAIC) questioned Governor Patrick Khaemba on why his administration spent 106 per cent on recurrent expenditure and failed to utilise development budget.

Former Auditor General Edward Ouko, in his last audit report, noted that the county recorded expenditure of Sh5,839,385,755 to result in an overall budget under-absorption of Sh789,142,465 or 12 per cent.

“The under-absorption was mainly on development vote of which Sh950,855,795 was expended out of the approved budget of Sh1,996,330,257 and resulted in under expenditure of Sh1,045,474,462...,” reads the report.

But Mr Khaemba told the oversight committee that the under-absorption was occasioned by the timing of the cash flow from the National Treasury, adding that the county raised Sh248.7 million against a budget of Sh400 million, resulting in a shortfall of own source revenue of Sh151.2 million.

“The delays in receipt of funds normally results in some projects due for payment spilling over to the next financial period. In the financial year under review, the disbursement of Sh451,792,000 was received on July 4, 2018 in the subsequent financial year. These funds were carried forward as unspent balance to the financial year 2018/19,” said Khaemba.

Ouko had revealed that the county government allocated Sh4,068,745,538 to recurrent (normal operations) vote and spent Sh3,965,975,049, resulting in net under-expenditure in all 10 departments.

According to the report, there was an expenditure above 10 per cent in the departments of agriculture, livestock, fisheries and co-operatives development, education, ICT, governance, public service and management.

However, there was no authority or documentary evidence of re-allocation of funds to all departments that recorded over-expenditure.

Khaemba argued details on over-expenditure were based on a draft and incomplete report. For instance, he said, the transfer to county assembly cost Sh530,452,425 but the report only captured Sh239,147,960.

“The overall recurrent expenditure in the financial statement was Sh4,888,529,960 but the total contained in the audit report amounted to Sh4,227,639,109,” he said.

Khaemba was also under fire for having failed to remit taxes to Kenya Revenue Authority, resulting in a penalty and interests.