A Senate oversight committee has directed the anti-graft agency to start investigations into possible loss of Sh110 million in unremitted liquor licence fees in Homa Bay county.
The Senate County Public Account committee ordered the probe after revelations the county under former Governor Cyprian Awiti failed to disclose collections from the stream.
The Homa Bay Senator Moses Kajwang-led panel established the county constantly reported nil revenue returns from liquor licence fees.
This is despite the county issuing licenses to more than 900 liquor outlets.
This is in addition to failing to prepare and remit financial statements from the liquor fees for six years starting from the financial year ending June 30, 2016.
Appearing before the panel, Governor Gladys Wanga disclosed the county government has licensed 920 liquor outlets with each paying a fee of Sh20,000 annually.
This translates to Sh18.4 million. Nonetheless, the county had put their target at Sh1.4 million.
However, since the financial year ended June, 2016, only one fiscal year accounts financial statement has been audited with the rest not provided for audit.
As a result, the audit report said the accuracy, completeness and validity of the nil liquor licensing fees reported in the year under review could not be confirmed.
According to the county government, Homa Bay County Alcoholic Drinks Control Fund was established in 2015 to receive the fees.
In the audit report for the financial year ended June 2020, the management of the fund did not prepare or submit for audit the financial statements, and in addition, failed to provide records on bank statements, liquor outlets and licences issued for audit review.
Raising concern over the management of the fund, Kajwang’ said the county government could potentially have been losing Sh18.4 million annually for the six years that the fund administrator did not prepare financial statements and provide needed documents.
“We are directing the Ethics and Anti-Corruption Commission to take interest in this matter with a view to investigate and subsequent prosecution of individuals found culpable,” Kajwang’ said.
“This is brazen theft of public resources where Sh110 million was going to private pockets. We will not shut our eyes and say let bygones be. There must be administrative action on those who were to prepare the statements,” he added.
The chairman reckoned that the law requires that fund administrators prepare financial statements and the individuals who failed to follow the law, be held accountable since the county government has been declaring nil revenue return from the revenue stream.
Senators Samson Cherargei (Nandi), John Methu (Nyandarua) and Okiya Omtatah (Busia) agreed that EACC take up the matter for investigations and possible prosecution.
Senator Kajwang’ further claimed that sub-county administrators were involved in collection of the liquor fees and also pointed out that the 920 outlets declared were an underrepresentation.
Another point of concern, according to documents attached, the money from liquor fees were being paid and then withdrawn the following day raising concern where the money was being taken to.
Governor Wanga admitted that the list provided by staff under her predecessor was not exhaustive as three municipalities had not been mapped.
She said the county government has the potential of raising Sh30 million every year from liquor fees.
However, the governor added that since the Homa Bay County Alcoholic Drinks Control Fund is a revolving fund, they accounted for the fees in separate financial statements.
Nonetheless, she regretted that during the audit exercise, financial statements, bank statements, and list of liquor outlets were not provided to the audit team for verification.
“The invitation of EACC to investigate the matter is welcome. We have also been constantly taking administrative action on other happenings in the county government where currently 15 officers are under disciplinary action,” she said.
-Edited by SKanyara
