• Governor Amason Kingi protests that the commission has stifled the county’s effort to recover the cash from unscrupulous companies that had conspired with fraudsters
•According to the audit report, Kilifi lost Sh43.24 million through online transfer from recurrent bank account to fictitious individuals under unclear circumstances
Image: EZEKIEL AMING'A
The Ethics and Anti-Corruption is on the spot after revelations that it has stalled the recovery of Sh43.24 million that was looted from Kilifi county government in 2016.
It has also emerged the county could not account for expenditures amounting to Sh99.16 million the Directorate of Criminal Investigations officers carted away financial documents.
Governor Amason Kingi protested that the EACC has stifled the county’s effort to recover the cash from unscrupulous companies that had conspired with fraudsters to siphon cash.
“We filed civil proceedings and managed to get a judgment, but before we could be issued with a decree, EACC challenged the decision saying we did not have legal standing to recover the monies stolen,” Kingi said.
He spoke when he appeared before the Senate County Public Accounts and Investments Committee to respond to the 2018-19 audit queries.
According to the audit report, Kilifi lost Sh43.24 million through online transfer from recurrent bank account to fictitious individuals under unclear circumstances as they had not been contracted by the county.
In 2016, crooks are said to have gained access to the county’s bank accounts after they manipulated the electronic money transfer system – Integrated Financial Management System.
They reportedly stole passwords for 10 officials and used them to access the system where they transferred the cash from the county’s account at the Central Bank of Kenya.
The county’s internal auditor flagged out the fraud.
The county reported the matter to the anti-graft agency which immediately launched investigations, leading to arrest and arraignment of suspects.
According to the governor, all the firms that reportedly manipulated the financial system and transferred the cash to their own private accounts had agreed to refund the cash in an out of court agreement.
However, the commission filed a case, barring the county from recovering the cash thus putting the money at risk of loss.
During the meeting, the committee members took issue with EACC, questioning why it is blocking the recovery of the cash.
Isiolo Senator Fatuma Dullo said Sh43 million was a lot of money that could help Kilifi people.
An EACC officer attached to the panel could not explain to the commission and sought time to consult his bosses.
Commission chairman Ochillo Ayacko (Migori) gave the commission 14 days to provide a report detailing what it was doing to conclude the case to ensure the county recovers the money.
Kingi also poured frustrations his county had endured getting key documents from the DCI to account for the expenditure of Sh99.16 million.
The cash was spent on nine projects but key documents including payment vouchers were not provided to ascertain the authenticity of the expenditure.
“The management did not avail supporting documents by way of files and payment vouchers for nine projects with a total contract of Sh99.16 million,” the report reads in part.
Kingi told the nine-member panel that despite informing the officers that carting away the crucial documents could disrupt the county operations, they pushed for their production.
The officers were investigating graft allegations in the county.
“We wrote to the DCI in March 2019 requesting for the documents so that we can give them to the audit, but there has been no response,” Kingi said.
The committee resolved to write to the DCI and EACC saying their work should not stagnate the operations of other agencies.
“It is apparent that the DCI and EACC do not seem to be working well with Kilifi. As a committee, we are writing to them because they should not hinder other agencies from doing their work,” Ayacko said.
Edited by Kiilu Damaris