• The latest report by Auditor General Nancy Gathungu has revealed massive unexplained expenditures across the assemblies.
• The audit report for the financial year ending June 30, 2021, was tabled in the Senate last week.
Image: Handout
Taxpayers could be losing millions of shillings in county assemblies that are also dogged by huge pending bills that threaten to paralyse their operations.
The latest report by Auditor General Nancy Gathungu has revealed massive unexplained expenditures across the assemblies.
The audit report for the financial year ending June 30, 2021, was tabled in the Senate last week.
In Narok, the county assembly cannot account for Sh32.51 million reportedly received during the year under review.
The report shows that while the assembly declared to have received Sh769.84 million from the county executive, records from the executive reveal that Sh802.57 million was dispatched to the assembly.
This leaves an unexplained variance of Sh32.51 million, triggering concerns the amount could have been lost.
“In the circumstances, the accuracy and completeness of the transfer from the county treasury amounting to Sh769.84 million could not be ascertained,” the report adds.
In addition, Sh86.76 million could be lost in payments of salaries and wages to the assembly workers.
While the financial statement reflects expenditure on compensation of employees of Sh449.51 million, analysis of payroll shows Sh362.75 million was incurred as employee costs.
The assembly, the audit reveals, has accumulated pending bills amounting to Sh45.45 million.
In addition, the county has yet to submit Sh70.67 million to Laptrust, out of which Sh46.40 million accounts for interest.
In neighbouring Kajiado, the county assembly has accumulated pending bills of Sh51.19 million
“Failure to settle pending bills in the year for which they relate end up adversely affecting the implementation of the subsequent year’s budget programmes as the pending bills form a fist charge to that year’s budget provision.”
The assembly also paid Sh750,000 to society of clerks in respect of membership fees, dues and subscription.
However, an examination of the records reviewed found that the society is not a legally constituted entity within which framework these payments were made.
In Bomet, the assembly owes Sh535.93 million in pending bills, including Sh411.54 million owed to the Kenya Revenue Authority.
“Although the management provided correspondences with KRA indicating that the county assembly has been remitting taxes, no explanation was provided why the assembly tax account and KRA ledger reflected outstanding balances,” the report stated.
The auditor further indicted the assembly for ethnic imbalance in the composition of the institution’s staff.
Up to 99 per cent of the county assembly’s workforce come from a dominant ethnic community.
This is contrary to section 65(1) of the County Government’s Act, 2012 and section 7(1) of the National Cohesion and Integration Commission Act, which speaks to ethnic diversity in public offices.