ON THE SPOT

Ouko flags unexplained CDF funds in stalled projects, bursaries

Mwingi North and West, Jomvu, Kitui South on the spot for missing or unaccounted for CDF.

In Summary

• Ouko says misuse of taxpayers' cash in constituencies continues unabated.  

• NG-CDF managers are not providing documents to explain expenditure. 

Auditor General Edward Ouko. Photo/FILE
Auditor General Edward Ouko. Photo/FILE

Misuse and wastage of the National Government Constituency Development Fund continue unabated.

This is according to the latest audit reports by Auditor General Edward Ouko on the utilisation of the NG- CDF cash tabled in Parliament last week.

The reports for the year ended June 2018, have put constituencies on the spot for failing to provide documents to support the expenditure of millions of taxpayers’ money allocated to them.

In Kitui South, for instance, Ouko said Sh6.6 million that was meant for development has been idling in the bank since November 2015 thus denying residents the much-needed services and development.

“Although the management explained that the funds were held due to a court case that froze the account, the respective documents including the current position of the court case have not been availed for audit review,” the report read.

The Rachel Nyamae-led constituency has also been indicted for failing to complete six projects worth Sh9.1 billion during the year under review due to inappropriate project implementation mechanism.

“In view of the foregoing, the constituents did not get the expected services equivalent to the six projects totalling Sh9,100, 000,” Ouko said in the report.

In Jomvu constituency, the auditor cast doubts on the expenditure of Sh12 million that was meant for the bursary of needy students. Out of the amount, Sh331,380 was disbursed to students without admission numbers.

Some students were awarded the bursary twice and received money despite sharing admission numbers.

“The management has not explained why such anomalies took place and the remedy for the same,” Ouko said.

The auditor notes that the residents of Jomvu were denied services after the constituency failed to utilise Sh106.47 million in its budget. The constituency is under the leadership of Badi Twalib.

“The under absorption of Sh106,740,580 representing 66.7 per cent of the budget is an indication that projects have not been implemented as planned,” Ouko said.

Further, eight projects worth Sh20.30 million that the constituency initiated at the start of the financial year had not been completed by the end of the year. Seven other projects worth Sh30.23 million that had been budgeted for during the year, had not started by the end of the year.

In Mwingi North, Ouko could not trace Sh2 million that the constituency fund managers transferred to secondary schools.

Financial statements showed that Sh7.27 million was transferred to secondary schools but physical verification showed only Sh5.27 million reached the institutions.

The auditor could also not confirm if student bursaries worth Sh27.10 million that were disbursed to secondary schools and tertiary institutions were received as there were no acknowledgement receipts by the beneficiary institutions.

In Igembe Central, Ouko flagged nine projects worth Sh11.42 million that had not started by end of the year yet they were budgeted for. 

The situation is similar in Mwingi West constituency. Here, Ouko could not confirm if indeed Sh13.91 million that the fund managers said was disbursed to secondary schools for bursaries reached the institutions. There were no acknowledgement receipts from the beneficiary institutions.

In Chuka Igambang’ombe constituency, Sh2.1 million spent on employees could not be accounted for as there were no supporting documents.

The constituents could also have lost Sh7.60 million that was into pumped into projects that have either stalled or are not viable.

Out of the total amount, Sh500,000 was used to construct a classroom in a school that was not registered.

“In the circumstances, the value for money of Sh7,600,000 in respect to projects for the year ended June 30, 2018, could not be ascertained,” Ouko said. 

(Edited by R.Wamochie)


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