• County fails to account for billions, raising possibility of loss of funds
• Sh159 million collected locally instead of targeted Sh766 million
• Projects abandoned by contractors, completed ones not in use
Image: ALPHONCE GARI
Kilifi may have lost Sh3.8 billion devolution cash disbursed to the county government during the 2017-18 financial year.
A report by Auditor General Edward Ouko blames Governor Amason Kingi’s administration for financial flaws leading to loss of funds in payment for goods not delivered and work not done.
The report reveals that the county lost Sh43 million through online transfer of funds without supporting vouchers. The total amount lost initially was Sh51.3 million but the county recovered Sh8.3 million.
Ouko also found out that the county failed to meet its revenue target by Sh606 million, having contracted a private company to collect the cash on its behalf.
Kilifi engaged Rain Drop Limited to collect revenue for 15 years. The firm was to install 10 weighbridges, an automated system and construct parking bays.
The contractor was to collect Sh766 million annually but only managed Sh159 million in the period under review.
Rain Drop deposited money in their private accounts instead of putting the cash in the County Revenue Fund account.
“The executive did not verify the amounts collected. The accuracy and completeness of the Sh159 million in revenue could not be confirmed,” the report says.
Ouko has also flagged Sh622 million spent on projects which have not been put to use despite some of them being complete. Key among these are water projects, an ICT lab at Kaloleni, ECD classrooms and social halls.
The auditor reveals that some contractors of the projects have abandoned the sites. For instance in Mtwapa scheme water project, the county spent Sh1.2 million for construction of a water kiosk.
“A physical inspection revealed that though the project was complete, the water kiosks were not constructed.”
Ouko further indicts the county government over an irregular payment of Sh112 million in salaries from an account meant for holding contractors’ money.
Accounting officers were also found to have understated incomes from revenue streams resulting in a variance of Sh11 million.
The county failed to explain why it did not disburse Sh65 million in donor funds for user forgone fees. Some Sh97 million spent as legal fees for a case going back to 2015 was not also explained.
Ouko further reveals that Kingi’s administration failed to absorb Sh1.5 billion, meaning some budgeted development projects were not implemented.
Records made available for audit showed Sh174 million was collected but not transferred to the county revenue account while Sh41 million was spent at source without any supporting approvals.
Apart from the Sh41 million, the administration also spent Sh7 million collected from residents seeking health services .
Ouko castigated Kingi's government for charging residents seeking health services between Sh20 and Sh50 yet the national government had issued funds for the same.
“The national government compensated the county through a grant of Sh26 million for user forgone fees. In the circumstances, the county did not adhere to the national government grant conditions,” the report tabled in the Senate reads.
The county also failed to remit Sh24 million in statutory deductions from employees, being accumulated arrears owed to Widows Children Pension Scheme and GOK rent deduction. Kingi’s team paid Sh7.4 million for fuel, oil, and lubricants among other utilities which were not delivered.
Some 12 Wi-fi hotspots put up in various places in the county have remained unused owing to lack of electricity.
“The validity of the expenditure on communication supplies of Sh5,373,899 could not be ascertained,” Ouko says.