Auditor General Edward Ouko has questioned Trans Nzoia county expenditure on stalled projects and payments for contracts amounting to Sh2 billion.
Some of the payments were reflected in the IFMIS system last year.
Ouko in his report for the year ended 30 June, 2018 says the county statement of receipts and payments reflect payments of Sh5.8 Billion whereas the IFMIS report shows Sh3.9 billion. The variance of Sh2 billion is unaccounted for.
The auditor also queries a list of pending bills amounting to more than Sh1.2 billion, which is not supported by the necessary documents.
“Consequently, the county management contravened National Treasury requirements that the accounting officer should institute stringent financial controls and maintain financial discipline in order to achieve efficient use of resources”, Ouko says.
The county has so far acquired assets worth Sh4.4 billion since inception in 2013 but Ouko says the assets register is incomplete and does not include details like assets taken over from defunct local authorities.
Ouko says the county recorded under-utilization of resources totaling Sh1 billion. The county had an approved budget of Sh6.6 billion, comprising Sh4.6 billion for recurrent expenditure and Sh1.9 billion for development.
“The under-absorption of the approved budget is an indication that some activities and development projects in the annual development plan were not implemented by the executive and this affects service delivery to residents of Trans Nzoia”, Ouko’s report says.
Ouko also accuses Governor Patrick Khaemba's administration of giving unsatisfactory explanations on why many projects in the health sector remained incomplete yet the department only utilized Sh154 million in the last financial year.
“Consequently, residents of Trans Nzoia may not have obtained the health services they are entitled to”, he says.
The Auditor General has also queried expenditures on the proposed Trans Nzoia County Referral Hospital expected to cost more than Sh2 billion.
Ouko says phase two of the project comprising equipping the facility had been given to the main contractor for Sh732.3 million. The work was to be completed by February but an audit revealed it stalled last year and the contractor abandoned the site.
Ouko has also faulted direct use of internally collected revenues amounting to Sh36 million at the Kitale county hospital and Mt Elgon subcounty hospitals contrary to regulations.
The Public Finance Management Act requires that the money should be banked to go through necessary approvals before it is used.
Ouko flags the use of Sh228.9 million on the Kitale bus park project out of Sh339 million that had been set aside. The project has however stalled and the contractor abandoned the site.
