ACCOUNTING MESS

Projects stall in Baringo, West Pokot – Auditor

Key documents missing, no explanation for many stalled projects, awarding tenders to highest bidder

In Summary

• Says millions paid to contractors for stalled Baringo projects worth more than Sh2 billion.

 • West Pokot Governor Lonyangapuo has suspended construction of 23 projects started by Kachapin. 

Baringo Governor Stanley Kiptis in Kabarnet town on January 28
AUDIT: Baringo Governor Stanley Kiptis in Kabarnet town on January 28
Image: MATHEWS NDANYI

Auditor General Edward Ouko has highlighted irregular expenditures and stalled projects in Baringo county worth more than Sh2 billion.

In his 2017-18 audit report, Ouko says the county could not explain why many projects had stalled or their implementation was delayed, yet millions had been paid to contractors. 

The county headed by Governor Stanley Kiptisis was also flagged for the irregular purchase of medicines from highest bidding companies, irregular re-allocation of funds and poor accounting systems. 

Some of the stalled or delayed projects listed by Ouko include the Kabarnet Stadium, Eldama Ravine Milk Processing Plant, Barwesa slaughterhouse and Rosaga Irrigation Scheme.

Others are the casualty and mortuary blocks at Marigat Hospital.

Ouko said the existence of Sh743 million assets could not be confirmed because the county did not provide necessary documents for verification. 

The county also has been faulted for irregular re-allocation of Sh102.5 million development funds to recurrent expenditure to pay staff. Ouko says this was contrary to Public Finance Management regulations.

The county also irregularly used an extra Sh11 million to purchase certified seeds, breeding stocks and live animals, yet Sh8 million had been budgeted for these expenditures. The county executive did not explain why extra funding was used irregularly.

The auditor also said the county understated its pending bills by Sh84 million. It cited Sh80. 7 million bills but left out Sh51 million owed to the Kenya Medical Supplies Authority and legal fees of Sh32 million.

“In the circumstances, the accuracy and completeness of the pending bills could not be confirmed," the audit report said.

Ouko said the county had uncollected land rates amounting to Sh107.5 million as at June 30 last year. He questioned why the county was not issuing demand notices to plot owners.

Ouko faulted the county for using Sh2.7 billion to pay salaries for a bloated workforce of 4,013 employees. The expenditure was 48 per cent of the total county revenues yet the law prohibits the county from using more than 35 per cent of its revenue to compensate staff.

The county also spent Sh6.6 million through irregular procurement of medicine at inflated prices after several firms were given supply tenders yet they were the highest bidders. The county used Sh13 million on the drugs instead of about Sh6 million budgeted.

The auditor's report also indicates that the county used Sh17. 9 million on foreign travel but out the Sh7.4 million was irregularly reallocated to domestic travel. 

The county also allocated Sh21 million for training but of that amount,  Sh17 million was irregularly reallocated to other areas. 

The auditor has also queried several stalled projects in West Pokot county where Governor John Lonyangapuo has invited the Ethics and Anti-Corruption Commission to probe some e projects initiated during the administration of former governor Simon Kachapin. 

Lonyangapuo has suspended construction of 23 projects started by Kachapin to facilitate the probe. 

“We note with concern that most of the projects were a non-priority. What was the need, for instance, of setting up headquarters in every subcounty, yet our people are grappling with abject poverty?” Lonyangapuo asked.

An audit by the National Construction Authority revealed that the cost of the same projects had been highly inflated.

The stalled projects include the construction of an Early Childhood Development Centre, a Sh41 million multi-purpose hall in Kapenguria, a Sh233 million agricultural training college and the  Sh12 million Makutano Stadium, among others.

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