Auditor General Nancy Gathungu has flagged a Sh37 million unsupported bank overdraft facility by the Kakamega County assembly.
Gathungu said in her audit for the county assembly for 2023-24 that the assembly management acquired the loan in 2022 which had accumulated interest to Sh4,395,207, resulting in an accumulated balance of Sh41,395,207 as at February 2024.
“However, the loan agreement and approvals were not provided for audit review. In the circumstances, the regularity of the overdraft facility amounting to Sh41,395,207 could not be confirmed,” the report dated January 29 read.
The auditor also flagged Sh13,695,404 in unsupported legal fees paid by the county assembly to advocates’ firms.
The report said procurement documents, including approved requisitions, evaluation committee minutes, tender award letters and tender acceptance letters, were not provided for audit review.
“Further, instructions to advocates by legal officers to take up legal cases, the justification on why the legal officer did not take up the cases to save the county assembly on legal expenses and computation of the advocates' fees were not provided for audit review,” it read.
Clerk Donald Manyala said the assembly had already responded to both Senate and county assembly PAC over issues raised in the audit.
He said the bank overdraft facility was a salary solution by the previous assembly leadership and some county staff were fired as a disciplinary measure.
“The matter is under active investigations by the Ethics and Anti-Corruption Commission and DCI officers although it has taken too long,” he said.
“You’ll realise the matter is recurring and it will be closed once the investing agencies conclude their work,” he added.
He said the issue about the legal fees to external lawyers was flagged because of unavailability of the framework agreement document which has since been supplied to the Senate and county assembly PAC.
“We have a legal department that is overwhelmed. There are only two officers who cannot do litigation and legislation at the same time and that’s why we involve external lawyers for things to move,” he said.
The audit report also highlighted failure by the county assembly to comply with requirements by the National Cohesion and Integration Commission Act 2008 on ethnic composition of its staff establishment.
The report showed that 98 per cent of the assembly staff were members of one dominant community, contrary to the Act.
But Manyala said the law was enacted way before devolution came into existence.
He said the law was meant to address the 2007-08 upheaval that was sparked by ethnic tensions around elections.
“It’s one of the laws that have not been aligned with the constitution. There is a need for an amendment to align it,” he said.
“All the 47 counties are localised and there are high chances that counties will have their staff composition largely from local communities. It’s an issue that should not be punished on accounting officers,” he said.
He said the assembly had put in systems to ensure that audit issues do not recur.
