Nairobi County Assembly's
Public Accounts Committee wants the contract with Web Tribe Limited, which operates its JamboPay revenue collection system, terminated.
The 19-member committee accuses the company of remitting money collected late.
Members say the delays are aimed at redirecting county funds to personal interests, through Web Tribe's account at Cooperative Bank.
"In this regard, the committee has recommended that the county invokes the provision of clause 17 of its agreement with Web Tribe and terminate the agreement following a breach of sections 24 and 25."
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The committee's advice followed the
Auditor Generals report on the 2015/16 financial year.
It wants the County to develop its own internal and foolproof automated revenue collection system, within five months of adopting its recommendations.
The following were the team's findings:
POOR FINANCIAL RECORDS
City Hall was accused of
poor financial records keeping and non-submission of key accounting documents.
The committee has recommended that all accounting officers institute measures to ensure their departments adhere to Public Finance Management Act, 2012.
It wants administrative action taken against officers who neglected their duties and misconduct reports filed with relevant authorities.
LAPSES IN REVENUE COLLECTION, ACCOUNTABILITY
During the period under review, the committee notes, the County
spent locally generated revenue at source, on several occasions, contrary to section 109(2) of the Public Finance Management Act.
The committee said it ascertained that parking attendants colluded with motorists to evade payment of fees.
For instance, the committee reported that county records show that only Sh2.03 billion was collected as parking fee for the year under review.
"Out of the 2,117,165 vehicles eligible for payments, only 1,321,565 paid, an indication that 38 percent of the vehicles did not pay the fees," the report stated.
The PAC wants
immediate automation of all local revenue collection systems, especially those for parking. It added that all parking attendants and officers should be sanctioned to explain why the rest of the motorists did not remit their fees.
PROCUREMENT PROCEDURES VIOLATED
The committee further accuses City Hall of inflating prices in most of its purchases and not supporting documents.
In a majority of the purchases, the PAC said, the county resorted to restricted tendering as opposed to competitive bidding.
FUNDS MISUSE IN LEGAL DEPARTMENT
City Hall is also accused of entering
Sh580,270,149 into the IFMIS as the legal cost contrary to regulations by Treasury.
Sh480,270,149 of the amount fell outside the approved budget of
Sh100,000,000.
"We recommend prosecution of county executive committee member for finance and economic planning and an overhaul of the legal department accompanied by a forensic audit of all pending legal fees," the committee said.
HUGE PENDING BILLS
The PAC reported pending bills amounting to Sh48.29 billion and raised concerns about their validity, noting the figure resulted from
non-submissions of employees' statutory deductions.
In February, Nairobi Governor Mike Sonko appointed a committee to audit the county's Sh60 billion pending bills and table its report in 90 days.
The debts are supposedly for goods and services rendered to previous administrations.
Sonko said individuals or companies found culpable of scheming to swindle the city out of millions, for goods and services that were not supplied, will face the full wrath of the law.
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IRREGULAR BORROWING
According to the PAC, the county has an outstanding balance of Sh3.4 billion from KCB being a payout for an Equity Bank loan.
Records
show a subsequent disbursement of Sh700 million from the same bank.
The committee notes the loans were not properly approved since the Assembly did not permit the borrowing and the National Assembly did not guarantee the same as required under article 212 of the Constitution.
IRREGULAR ALLOCATION OF COUNTY PROPERTIES
The PAC said it ascertained that several parcels of land owned by the county have either been irregularly allocated to or encroached by private developers.
It referred to the Auditor General in saying that the parcels of land for Komarock Ward offices, Mutuini Hospital, High Ridge Health Centre, Nanyuki road stores and depots, Karen Health Centre and Highways stores were illegally allocated.
"We have directed the Lands CEC to engage the National Lands Commission with regards to reverting the land," the committee said.
"The committee has also invited the EACC and DCI to investigate all dealings on county land, especially those mentioned, and take appropriate action."
On April 24, Sonko apologised for the mess in Nairobi but blamed his predecessor Evans Kidero.
He
touched on cartels that he says have ganged up to fight him over his leadership style and his fight against corruption.
He later warned that county executives who do not deliver will lose their jobs.
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