The amount stolen from Kilifi County bank accounts has risen from the previously stated Sh45 million to Sh51 million, Finance Chief Officer Ben Kai told an assembly session on Friday.
It is suspected that there are cartels at the Central Bank and five banks where the money was deposited as well within the county government.
The assembly is probing whether the officials colluded to loot the funds from the IFMIS system.
Kai, when he appeared before an oversight committee of the assembly, said that a report has revealed that Sh51, 209, 775 was lost.
The committee chaired by Speaker Jimmy Kahindi raised fears that there could be more funds which have been embezzled under similar circumstances.
The revelations come barely three days after 10 county officials were suspended for allegedly being behind the corrupt deal.
Those suspended included Chief Officer Health Timothy Malingi, Paul Mwanzo (Accountant- Treasury), Jacob Konde (Accountant-Health), John Kalume (Accountant-Finance),
Josephine Muramba (Accountant-Education.)
Others include Vivian Nzai (Accountant- Water), Dickson Tembo (Clerical Officer-Agriculture), Lenox Mwadzoya (Inspector-Roads), Johnson Nyamawi (Accountant-Finance) and Lilian Hariri (Clerical officer-Health).
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Also present was Health CEC Rachael Musyoki
whose department has been affected by the scandal.
The monies disappeared mysteriously from the department of health and reportedly did not go through the required procedures as per the law.
During the hearings, county secretary Owen Baya told the committee the 10 officers were suspended since their passwords are used to transfer
funds through IFMIS.
Baya said they have written a letter to IFMIS to cancel all the passwords and transactions.
"Banks in Nairobi, IFMIS and county officers might have collaborated to swindle the county government Sh51 million. A letter from IFMIS has indicated that the system was not hacked," he said.
The committee was told that the funds were wired to Makegra Supplies, Zohali Supplies, Kilingi Investment, Leadership Edge Associates and Daima One Enterprises.
The county secretary said they managed to reverse only Sh 8 million after alerting the Central Bank of Kenya over the fraud.
He said that IFMIS department, EACC, CID and Anti Bank Fraud Unit of the Central Bank of Kenya have begun investigation on the matter.
The Speaker later told journalists that the scandal could be bigger than it appears to be since the amount of money stolen rises in each sitting.
He adjourned the session to
Tuesday next week
when each of the 10 suspended officers will appear before the committee for interrogation.
Reports indicated that the accounts of the companies mentioned in the scandal had been frozen.