The Kisumu county government could be paying ghost workers Sh2.3 million shillings monthly and cannot account for Sh405 million spent as employees compensation, the 2014-15 report by the Auditor General has revealed.
The report says that in January 2015, all employees were paid through cheques which they collected personally, but that 25 did not pick theirs. The cheques were yet to be collected by September 2015.
The Auditor General concluded that the Kisumu government could be paying that amount to ghost workers every month.
"It is not possible, however, to quantify how much the county government may have lost in total due to missing information in their personal files. Consequently, the propriety of payments of ShSh2,379,315 could not be confirmed," the report states.
The report also shows that Kisumu county paid Sh3.7 million to 13 officers as extraneous allowance, without approval by the County Public Service Board and the Salaries and Remuneration Commission, contrary to the law.
It says this payment can therefore not be confirmed.
Like many other counties, Kisumu also has major discrepancies in amounts reported and reports generated through IFMIS.
Reports from IFMIS, as compared to the financial statements prepared by the county government, show a variance of Sh2.6 billion, most of it being recurrent expenditure.
"In the circumstances, the accuracy and validity of these financial statements could not be confirmed," Auditor General Edward Ouko says.
The report shows a balance of Sh996 million in imprest as at June 2015 cannot be ascertained for accuracy and completeness as requisitions and copies of imprest warrants are not available.
It adds that the Kisumu government has not explained a difference of Sh405 million spent as employees compensation.
"Consequently, the propriety and accuracy of the balance of Sh1.3 billion, in respect of acquisition of fixed assets could not be confirmed," the report says.
The report also says the county put pending bills totalling Sh536 million in its financial statements. This includes Sh52.2 million of goods, works and/or services that had not been executed to warrant terming the commitments as pending bills.
It adds that some Local Service Orders worth Sh5 million were not signed by suppliers, meaning legally binding contracts were not entered into.
The report also says that information shows CMC Motors supplied 40 vehicles at a cost of Sh207.5 million and was paid Sh186.4 million.
But the Auditor General notes pending bills of money owed to CMC reflected as Sh39.2 million instead of Sh21 million.
"Consequently the propriety of the expenditure could not be confirmed and value of money may not have been achieved,"the report says.