Auditor flags over Sh5 billion mess in Obado's executive

A storm is brewing in Migori after Auditor General Nancy Gathungu flagged more than Sh5 billion expenditures in the county executive.

Gathungu exposed several unexplained and questionable expenditures, irregular hiring of workers and doubtful pending bills that could have sunk taxpayers’ money.

The country’s top auditor revealed that Migori residents may not have got the value for several contracts and expenditures undertaken by the county government.

Gathungu laid bare the financial mess in her latest audit report, 2019-20 financial year, for the county executive tabled in the Senate last week.

According to the report that puts Obado’s government in a spot, taxpayers’ money amounting to Sh27.95 million was sunk into stalled construction of the county office headquarters, governor’s office and deputy governor’s residence.

The cash was paid to a consultant for architectural drawings and supervision of the works.

“However, physical verification of the projects revealed that work has not commenced despite architectural drawing being done and supervision money paid for,” the report reads.

Gathungu further flagged the annual expenditure of about Sh284.43 million incurred on gravelling and patching of same earth roads every year.

“This makes the expenditure repetitive and expensive as it requires regular maintenance costs for the same roads which is not sustainable in the  long run,” the report reads in part.

In addition, the county government procured hospital beds for Covid-19 patients at a contract sum of Sh19.60 million.

However, physical verification by the auditor showed that the beds were still in store and had not been put to use.

Gathungu also flagged payments of Sh108.89 million to casual workers.

The workers were engaged without the authority of the county public service board thus raising doubts about the authenticity of the payments.

Further, the casuals have been continuously engaged for more than three months without written contract contrary to Section 9(1) of the Employment Act Cap 226 laws of Kenya.

Sections 67 of the County Governments Act, 2012 which states that no appointment or assignment of a duty in a county public service shall be valid unless it is evidenced in writing.

Further, section 74 states that, “The County Public Service Board shall regulate the engagement of persons on contract, volunteer and casual workers, staff of joint ventures and attachment of interns in its public bodies and offices.

Tellingly, the auditor exposed wages and salaries to county workers  amounting to Sh139.34 million outside the IPPD system.

“It was not clear why management did not pay all its employees using the IPPD but resorted to manual system which requires manual calculation and is prone to human error,” the report adds.

Further, county employee cost increased by Sh105.81 million from the previous year.

“Management has not provided explanations and disclosures for the significant increase in the employees’ costs,” Gathungu said in the report.

Migori executive, Gathungu revealed, could not explain the payment amounting to Sh54.53 million made to an insurance broker for insurance services which was rendered in prior years.

The expenditure was listed as a pending bill.

“However, management did not provide inspection and acceptance certificate as evidence that the executive inspection and acceptance committee confirmed completion of the service in accordance with the contract,” the report states.

Further, the county spent Sh12.41 million on lawyers for representing the county in various legal matters.

However, the payment was not supported with individual itemised billing to enable verification.

“Consequently, the propriety of the payment of insurance costs and legal fees amounting to Sh66.99 million for the year ended June 30, 2020 could not be confirmed,” it reads.