Why MCAs want bursary team disbanded

Ward representatives in Samburu County have recommended disbandment of the bursary committee over alleged mismanagement of the kitty.

A special committee that probed the fund for 2022/2023 and 2023/2024 financial years, gave this verdict yesterday. Chaired by Lenamparasio Kaunda, they established that the team violated several regulations.

They noted that the committee went against the Public Finance Management (County Governments) Regulations 2015, which limit administration costs of the fund to a maximum of 3 per cent of the approved budget.

According to the report seen by The Standard, in the FY 2023/2024, the allocation was Sh133,000,000 with the permissible administrative cost capped at 3 per cent amounting to Sh3,990,000.

Outgoing Samburu County Assembly Speaker Fred Lengees addressing a press conference at the county headquarters in Maralal town omn May 16, 2023 after he resigned.[Standard]

However, the actual administrative expenditure reached Sh9,496,600 exceeding the limit by Sh5,506,600.

It further noted that for the FY 2022/2023, the county bursary office exceeded the 3 per cent administrative cost legal limit by Sh1,624,600.

This trend indicated a cumulative over-expenditure of Sh7,131,200, over two financial years. The committee also found conflict of interest in management of the kitty since the coordinator was among beneficiaries of the fund, awarding himself Sh60,000 exceeding the set criteria of Sh15,000.

Additionally, the county bursary office issued bouncing cheques resulting to penalties. The MCAs established these charges were consistently imposed on the account whenever a cheque failed to clear due to insufficient funds.

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Between March 17,2023 and May 20,2024, the coordinator reported that 170 cheques issued by the fund had bounced. Each instance attracted a penalty of Sh3,600 resulting in a cumulative loss of Sh 612,000.

"There were irregular cash deposit. Upon reviewing the bank statements, the committee observed instances where the bursary coordinator made direct cash deposits into the fund account. For example on 17th February 2024, a deposit of Sh200,000 was made," read the report in part.

Kaunda, the ad hoc committee chairperson noted failure to disburse bursary especially to students studying outside Samburu County.

"This practice was noted to be inconsistent with the principle of equity which mandates fair and inclusive access to resources regardless of geographical location," he told the assembly yesterday.