MCAs want Kakamega government to explain how Sh200 million was paid to a private company.
The county assembly’s Public Accounts and Investment Committee has asked the executive to explain how the amount in question and accrued interest were spent.
The committee recommends that a forensic audit be undertaken to ascertain how the funds were used.
The committee report has been lying in the assembly for seven months without being debated.
According to the report dated April 2018, the county government created the Kakamega County Sugar Development Fund account No. 01141631142100 in the Co-operative Bank, Kakamega branch, and deposited Sh200 million on August 25.
Sh197 million was paid to Mumias Distributors Limited, a company that was to revolve the fund to aid payment of contracted farmers of Mumias Sugar Company.
The report says the balance of Sh46 million as well as the 5 per cent interest that was to be paid on quarterly basis is still being held by the Mumias Distributors limited.
The report recommends that the call account be closed and the money including the interest earned be re-appropriated.
