• Report exposes widespread irregularities, losses in operations
• At least Sh7 billion unaccounted for, documentation not availed
Image: FILE
A report by Auditor General Edward Ouko has raised queries over major irregularities in the Embu county government.
The review for the year ending June 2018 revealed several errors pointing to the possible loss of development funds.
The auditor flagged Sh7 billion unaccounted for in projects, accounting errors and procedures violating the Public Finance Management Act.
He said Governor Martin Wambora’s administration reported variances in its receipts and payments' statement amounting to Sh6.1 billion.
The auditor also flagged the county’s Sh7 billion assets since it did not factor in those taken over from the old local authorities.
The auditor raised queries over Sh2.6 million used for a DJ, photography, sound system, a documentary, event management and coordination during the county’s second investor conference.
The county spent Sh20 million on salaries through use of a manual payroll on grounds newly recruited employees experience delays in obtaining personal numbers.
The Auditor found the county paid casual employees Sh14 million without any supporting documents.
Ouko also queried a Sh3.7 billion variation between the financial statements and supporting schedules, as well as an inaccurate net financial position reported as Sh358 million.
The Auditor highlighted unsupported expenditure on fuel and lubricants (Sh19 million), training expenses (Sh6.8 million) and advertisements (Sh2.2 million).
“Needs assessment, invoices and copies of the advertisements were not made available for audit verification,” Ouko said.
The review also revealed that Wambora paid surveyors working at the Mwea Settlement Scheme Sh22 million in cash. “However, it was not clarified who the payees were and the reasons why the funds were not transferred to the specific officers’ bank accounts.," it said.
Also flagged was payment of a Sh2 million penalty for unremitted dues to a security firm, yet the agreement with the contractor did contain a penalty clause.
Ouko also questioned the county’s Sh1.3 billion pending bills without supporting documentation. No invoices were provided for audit review.
The Auditor also highlighted the Sh14 million trip by MCAs to Arusha for budget process training and benchmarking, which sparked fights among county lawmakers.
Ouko said copies of stamped passports, work tickets, boarding passes and certificates of attendance to the meetings were not availed
“Further, no explanation was given as to why the county executive funded the trip that was supposed to be catered for by the county assembly.”
The Auditor also asked why the county paid Sh74 million in legal fees yet the county has an attorney, legal officer, legal adviser to the governor, and a legal panel appointed by the governor.
“It was not possible to ascertain their role, including why they couldn’t represent the executive in cases before the court,” the report reads.
Several road projects also raised audit queries, especially Sh17 million spent on the Rupingazi Bridge that had no guard rails.
The audit team questioned Sh45 million on works on the Kibugu Road, the Kavutiri Factory Road (Sh9 million), Sh19 million for the upgrade of Uchumi-Mini Inn road to bitumen standard, Sh54 million for Mbiruri-Nduuri Junction and the Muraru-Kanyariri road (Sh3.8 million).
Works on roads within Kiritiri town were also queried. The audit team said the contractor abandoned the site and did not complete the work as spelt out in the bill of quantities. Under the circumstances, the propriety and value for money in Sh20 million expenditure on the works could not be confirmed,” Ouko said.
He also criticised the county for hiring 75 per cent of staff from the dominant ethnic community, violating the law requiring that at least 30 per cent of jobs be held by other communities.
The county was also found to be operating without an audit committee, hence, at risk of not enforcing internal controls to stem further losses.