MCAs want former executive officers in the Finance department investigated for alleged irregular payments of Sh540 million in legal fees.
In a PAC report tabled in the assembly, MCAs claimed illegal payments were made to law farms in 2016-17 outside the Integrated Financial Management System (IFMIS).
The report cited former Finance executive Gregory Mwakanongo, chief officer for Finance Luke Gatimu and Head of Treasury Maurice Okere.
All the three did not respond to calls and texts seeking comment
“The actual expenditure on legal services of Sh645, 260,543 exceeded the approved budgetary allocation of Sh105, 000,000 resulting in an over-expenditure of Sh540, 260, 543,” states the report.
The report by the County Assembly Public Accounts Committee said the payments exceeded the budgeted amount.
The city-county has its own legal department.
The report states that finance officers never prepared a supplementary budget to regularise the excess money spent, as required by law.
The Public Finance Management Act states that for the executive to regularise excess expenditure, it must present a supplementary budget within two months of the expenditure.
The finance officers did not follow the procedure in making the payments.
The committee chaired by Wilfred Odalo wants Director of Criminal Investigations George Kinoti and Director of Public Prosecutions Noordin Haji to investigate and prosecute the ex-finance officers.
The report said Sh318.4 million paid to lawyers was not supported by any vouchers or documents.
Despite the county spending a lot of money on legal services, City Hall has lost most cases, losing even more money.
“The continued procurement of legal services at extremely high rates, yet the county has a legal department, is unjustifiable," reads the report.
Former county attorney had told the committee that legal costs amounting to Sh321.9 million were paid under court orders for warrants of arrests against county officers and garnishee orders against county bank accounts.
"Judgmental costs are uncertain to budget for but when they arise, normally a pending bill's vote is used for payment purposes. The county government had no option left than to make the payment" Oseko said.
In the report, the watchdog committee recommended the blacklisting of Kithi and Co Advocates and any form of payments withheld until the DCI and EACC complete their investigations.
“The DCI and EACC should conduct further investigations into the legal fees paid or owed to Kithi and company advocates regarding the queried cases with a view of instituting criminal charges against persons within the county governments and the law firm for colluding to defraud the county government if found culpable,” the report reads.
(Edited by V. Graham)
