A Senate committee has invited the anti-graft agency to investigate the possible loss of Sh197 million at the Kisumu county assembly.
The County Public Accounts and Investments Committee has directed speaker Elisha Oraro and clerk Owen Ojuok to, within 14 days, supply a detailed report on who authorised the withdrawal of the money from the County Revenue account at Central Bank.
According to former Auditor General Edward Ouko, the money was withdrawn over the counter and declared as expenditure.
The speaker and the clerk appeared before the committee to respond to audit queries flagged by Ouko in his financial year 2017-2018 report.
Ouko observed that an examination of payments in IFMIS reflected material payments totalling Sh197 million out of the total statement of receipts and payments of Sh600 million.
“However, the purpose of cash payment is not supported and it is also not explained how cash payment of such magnitude can be paid through the counter to the county assembly of Kisumu and Car and Mortgage in contravention of the Public Finance Management Act, 2012 and the county financial accounting and reporting manual section 6.7 on petty cash management.
“Consequently, the regularity of Sh197 million expenditure could not be confirmed for the year ended June 30, 2018,” the report adds.
In their response, Ojuok said the money was transferred from their CBK account to operational account during IFMIS down time whereby withdrawals were being made for MCAs/staff and other daily operations.
“However, the amount was voided - it never left the account,” he said.
This sparked fury from the committee. “Unless the county assembly can prove otherwise that the money was spent or gives us an explanation, EACC must take up the matter and investigate,” Nandi Senator Samson Cherargei said.
According to him, even in M-Pesa, when you send money and you reverse, one is sent a message that money has been reversed.
“So why are they saying that the money never left their accounts?” Cherargei asked.
He continued: “ The EACC must pick this Sh197 million. It is outright theft of public resources by Kisumu county assembly - it is in black and white, however you marinate it.”
The speaker and the clerk said they are new in office, having taken the jobs this year. The speaker was elected in January and the clerk appointed in August.
The clerk said that before he assumed office there was a time when money was paid in cash but this was no longer the case.
“Nowadays, payment is done in IFMIS,” he said.
Marsabit Senator Godana Hargura, who chaired the session, warned: “We will not allow public resources of such magnitude to just disappear like that ... to the extent that the assembly cannot explain where it is.
“We want this issue to be handled by a competent organisation like EACC to tell us where the money went. Ours is just to mitigate. EACC must investigate this matter,” Hargura said.
He asked the EACC to take up the matter and interrogate the former clerk and finance officers.
