Busia county government has denied the loss of Sh714 million as reported by Auditor General Edward Ouko.
Executive committee member for Finance Lenard Obimbira said the money was intact.
"The reported amount are assets, which the county buys from the community. They include land, roads, ECDE classrooms and farm inputs. It shoud be noted that the county does not own the balance sheet of the said assets," he said on Thursday.
Early this week, Ouko published audit reports of 37 counties with revelations that a majority of them could not account for millions of funds allocated to them in the 2014/2015 financial year.
Among issues noted by the AG were the variance in purchase of goods and services, and a failure to itemize travel and transport expenditure.
In the case of Busia county, the audit report noted that Sh714,592,289 "has not been explained or supported including the purchase of land and medical equipments worth Sh10,755,981 and Sh142,811,987 respectively".
The Council of Governors has claimed that their funds are being looted through the Integrated Financial Management Information System (IFMIS).
Some governors also claimed that bank accounts in five counties have been hit by cyber-heists, with fraudsters stealing millions of shillings.
The counties that made these claims are Kilifi, Siaya, Kakamega, Wajir and Kitui.
Read more on Devolved Corruption
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