Tana and Athi River Development Authority failed to pay taxes and remit statutory deductions amounting to Sh361 million, an Auditor General report shows.
Nancy Gathungu, in a report for the year ending June 30, 2019, said the amount comprised unremitted pension and PAYE, among other statutory accruals.
“The authority may incur interest and penalties for failure to remit statutory deductions and taxes on a timely basis,” she added.
TARDA covers Machakos, Tana River, Meru, Makueni, Kajiado, Kiambu and Kitui counties. These areas experience frequent droughts and unpredictable rainfall, which have devastating effects on the economy and livelihoods.
The authority was established in 1974 through an Act of Parliament, Cap 443 of 1974 to advise on the institution and coordination of development projects in Tana River and Athi River Basins.
The authority's area of jurisdiction covers about 138,000 square kilometres. The area has a population of over 15 million inhabitants.
The Auditor General further noted that the authority recorded a deficit of Sh728.8 million during the year under review. This raised the cumulative deficit to Sh14.6 billion.
“Further, the current liabilities of Sh361,240,530 exceeded the current assets of Sh250,233,263 resulting in negative working capital of Sh111,007,267. The authority was therefore unable to meet its financial obligations when they fell due,” she added.
Gathungu noted that the deficit was attributed to depreciation charges of Sf Sh387.9 million on Masinga and Kiambere hydropower facilities and non-remittance accrued from Kenya Power and Kenya Electricity Generating Company.
This followed a government directive all revenue from hydroelectric power be remitted to the National Treasury.
She said the authority did not have ownership documents for three parcels of land located in Kibwezi, Lamu and Kitui measuring 13,325.6 acres.
(Edited by Bilha Makokha)
