• Garissa paidthe officer Sh224,000 as salary for the month of January last year
• The officer has been summoned to Nairobi as investigations commence
Details of the mess in the Garissa county government have emerged following revelations that a senior Controller of Budget staff is in the devolved unit's payroll.
This is even as the Ethics and Anti-Corruption Commission confirmed that they had launched investigations into what might thrust Governor Ali Korane into the heart of the graft storm.
Documents in possession of the Star show that Korane's younger Mohamed Bunow Korane was paid Sh48 million in a lucrative contract to construct the county chief's palatial lodge in Bura, Fafi constituency.
“The Commission is already looking at some matters that have been brought to our attention of which we cannot reveal the finer details at the moment,” EACC spokesman Yassin Amaro said.
Among the issues the EACC is reportedly probing is the employment of some senior staff with alleged dubious academic papers.
The Star has established that Controller of Budget Agnes Odhiambo has also launched investigations into allegations that her staffer based in Garissa to oversight the county's expenditure is also drawing a salary from the devolved unit.
The fresh details could turn the spotlight on the oversight agencies, just months after an outcry by governors that some officials from the office of the Auditor General were extorting counties for favourable reports.
Yesterday, Odhiambo confirmed that the office was aware of claims that her staff seconded to the county was being bankrolled by the Korane's administration and said that investigations had been launched.
“We have asked the officer to come to Nairobi on Monday (today). Kindly allow the office to finalise the investigations,” Odhiambo told the Star on the phone.
"We have an internal mechanism and we have asked the officer, who is now on his way, to come and explain himself."
Documents in our possession show that the said officer (Daudi Tandicha Soransora) is on a monthly salary in the county's official payroll in what contravenes the law and borders on a possible compromise.
For instance, the county paid Soransora Sh224,000 in January last year from the County coffers alongside other employees of the devolved unit despite being an office of the Controller of Budget staff.
A statement of account for the county shows the officer also received sh140,000 in the month of July last year.
CoB is an independent oversight institution that tracks and approves county expenditures and has officers stationed to watch over specific devolved units.
The payments raise concerns on the COB staff's credibility to superintend the county's expenditures and authorization of budget withdrawals from the exchequer.
The county is also on the spot for failing to remit taxes amounting to Sh1.1 billion to KRA with the taxman having already written to Korane's administration demanding settlement.
The taxes range from withholding Value Added Tax, withholding income tax and VAT on commercial rent contrary to section 95 of the Tax procedures Act, 2015.
“You are reminded that you are an appointed withholding VAT agent appointed under section 42(A) of the Tax procedures Act and Withholding income tax agent under section 35 of the Income Tax Act,” KRA said in its letter to the Garissa county secretary.
“In this regard, you are under obligation to deduct and remit applicable withholding Tax and Withholding VAT when making payments to suppliers,” KRA added blaming Korane's government deliberately failing to show commitment in settling the arrears.
However, the County has disputed the figures, saying their own computation put the tax arrears at Sh101 million which it said it would clear in three tranches.
“We agree we owe KRA Sh101 million which we commit to paying,” a letter dated May 3 and addressed to the Commissioner Domestic Taxes states in part.
Curiously, the County commits to settle Sh50 million from the development budget, raising questions on the legality of the reallocation. The rest would be paid in two installments at the end of May and June.
Counties pending bills audit by the Auditor General Edward Ouko show that Garissa County owes suppliers Sh1.9 billion as of February 15, 2019.
On Friday, the Ethics and Anti-Corruption Commission confirmed that they had launched investigations into various alleged irregularities in Garissa County, in what could thrust Korane into the eye of a graft storm.
EACC is investigating several governors among them Muthomi Njuki (Tharaka Nithi), Ferdinard Waititu (Kiambu) and Charity Ngilu (Kitui).
Last week, the Director of Public Prosecutions Noordin Haji approved charges against Waititu for conflict of interest, dealing with suspect property and abuse of office.
This followed investigations into claims that Waititu, his wife Susan Wangari Ndung’u, and their daughter, Monica Njeri, could have received millions of shillings from the county coffers.
Documents in possession of the Star show that Akad Construction Co. Ltd, a firm whose directors include among others, Korane's brother Bunow Korane, was paid Sh48 million by the county.
In what could put the company in trouble with KRA, Akad filed nil returns with the taxman last month despite the huge income from the county.
A search done by the Star on Friday morning at the Registrar of Companies indicates that the firm is also owned by Sifa Imports Ltd, Mohamed Elias, and Tom Maina Macharia,
In an intriguing case, Bunow and Elias reportedly resigned on Friday afternoon as directors of Akad in what could further deepen the mystery.
The Star has also established that Sifa Imports has separately been paid millions of shillings by the Garissa county government.
It is not clear what services the company offered.
Akad was paid money in three tranches between December 10 last year and March 18, 2019.
In the first instance, the county wired Sh3.3 million on October 12, 2018, while a second payment was processed in favor of Akad on October 26 last year.
The final payment was made on March 18, 2019, according to the RTGS transaction documents.
Governor Korane and other county officials could not be reached for comment yesterday.
An aide to the governor promised to respond but had not done so by the time of going to press.
Chapter Six of the Constitution on Leadership and Integrity and the Public Officers Ethics Act 2003 bound government officials from conflict of interest.
The ethics law makes it very clear that “a public officer shall not award a contract, or influence the award of a contract to himself, spouse or relative, business associate or any other body the officer has an interest.”
Kenya Power is also demanding an unknown amount of money in unpaid electricity bills accrued from subsidized county street lighting.
Korane is among governors lined up for grilling by the Senate over audit queries that have dogged his administration.
The county chief will appear before the Senate Public Accounts and Investment Committee tomorrow while his Kajiado counterpart Joseph Ole Lenku is set to appear today.
The auditor general has flagged out a number of irregularities among them unaccounted for expenditures amounting to Sh20 million for the purchase of specialized materials.
Ouko says the county failed to avail the bills of quantities of the bidders, local purchase orders and inspection reports, raising questions on the probity of expenditure.
Ouko also questions Sh7.8 million for the purchase of pumps and borehole accessories, goods he says he could not confirm their delivery as the county failed to provide documentation.