An audit has flagged expenditure of over Sh759 million at the State Department for
Mining pointing to a potential
loss of taxpayers’ money.
The latest Auditor-General’s
report on government ministries,
departments and agencies for the
period 2023-24 shows what the auditor says are irregularities in procurement of goods and
services, unsupported payments,
use of invalid Local Purchase
Orders (LPOs) and unaccounted
for cash.
Among the queries is accuracy in receipts and payments on
goods and services amounting to
Sh590.2 million, where several
entries were debited in the ledger and later reversed without any
supporting documents such as
journal entries, approval for
the reversals and particulars
indicating the nature of the
errors corrected.
This has seen
the auditor general question the
accuracy and completeness of
the use of the goods and services
that could not be confirmed.
The
State Department also paid bills
worth Sh3.9 million but was
not supported with relevant
documentation such as invoices,
contracts, delivery notes and
inspection reports.
In general,
the accuracy and completeness
of pending accounts payable
balance of Sh169.3 million could
not be confirmed, according to
the Nancy Gathungu-led audit office.
The report has also flagged
irregularities in procurement of
goods and services where during
the year under review, payments
totalling Sh56.5 million were
made in respect of various goods
before inspection and acceptance.
“This was contrary to Section
48 of the Public Procurement and
Asset Disposal Act, 2015 which
provides inter alia that an Inspection and Acceptance Committee
shall immediately after the
delivery of the goods, works
or services; inspect and where
necessary, test the goods received
in order to ensure compliance
with the terms and specifications
of the contract,” Gathungu says
in the report.
“In the circumstances, management was in breach of the law.”
The statement of receipts and
disbursements reflects property
income of Sh3.3 billion including
mining royalties amounting to
Sh257.3 million.
