Counties risk having their allocations slashed for consistent queries on prudent use of funds disbursed to them.
Senators said counties notorious for wastage of public resources should have their allocations reduced as punishment.
The proposal was made during a meeting between the Senate’s County Public Accounts and Investments Committee, Auditor General Edward Ouko, Treasury officials, the Ethics and Anti-Corruption Commission and the Office of the Controller of Budget.
The team listed Nairobi, Murang’a, Migori, Embu, Laikipia and Taita Taveta as counties that have had queries on their expenditures for the last five years consecutively.
Controller of Budget Agnes Odhiambo said most counties spend their revenue at the source in total disregard of the law.
The meeting was aimed at pondering appropriate actions to be taken against counties still grappling with challenges on spending funds.
CPAIC chairman Moses Kajwang (Homa Bay) said serious sanctions were needed to deter counties from misappropriating funds.
“We have identified the risks and know countries which are not improving. There are some counties that are consistently at disclaimer and adverse opinion. It is time action should be taken,” Kajwang said.
The stakeholders said governors and county officers should be held personally responsible and surcharged for wastage of funds.
The intervention will help in checking rampant loss of money in the devolved units, the team said.
Ouko challenged Senators to develop a law with serious punitive measures against governors whose governments have consistently been found with questionable expenditures.
“We need to take action, for instance, it should be this coming year that we deduct five per cent of the total allocations from these counties. Individually, we must make sure audit reports come with administrative actions holding individual persons responsible,” Ouko said.
Kisii Senator Sam Ongeri linked the consistent audit queries with governors taking advantage of loopholes in the financial management system to enrich themselves using county resources.
“When you have counties who since devolution have only attracted disclaimer, what has gone wrong. This is a pure case of impunity,” Ongeri said.
Mombasa Senator Mohammed Faki and his Narok counterpart Ledama Ole Kina asked Ouko to reign in rogue auditors who they said work in cahoots with county bosses to perpetuate corruption.
Olekina said auditors issue a clean bill of health to some of the counties known to be having issues in exchange for favours.
“Biggest impediment to success of county government is corruption. Your own auditors are lying in bed with county governments. What is your office doing to arrest the growing decay,” Faki said.
Ouko admitted there were "rotten apples" in his office. He said they were automating the auditing process to eliminate cases of auditors being manipulated.
Edited by Peter Obuya
