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The three Funds include County Alcoholic Control Fund, County Elimu Fund and County Consolidated Revolving Fund
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At the centre of the saga was Joseph Kamau, who was the administrator of the funds
Image: DPCS
A Senate watchdog committee now wants Mombasa government to explain Sh54 million expenditure just before the 2022 polls.
The money from Mombasa County Consolidated Revolving Fund, was wired to various groups without any loan agreement or security.
The revelations emerged during the questioning of Mombasa Governor Abdullswamad Nassir by the Senate County Public Investments and Special Funds Committee.
The committee chaired by Vihiga Senator Godfrey Osotsi, was considering the financial statements for three Funds operated by the county government for the financial years ending June 30, 2020 and 2022.
The three Funds include County Alcoholic Control Fund, County Elimu Fund and County Consolidated Revolving Fund.
At the centre of the saga was Joseph Kamau, who was the administrator of the funds and has since been moved to the department of social services.
Osotsi wants Nassir to explain the disbursement and make available the list of the beneficiaries.
“Do you have a list of borrowers? How is the county government going to recover the money and who are the people who received the funds?” Osotsi asked.
“[Some] Sh54 million has disappeared and someone has to be responsible for it. Publish all the names of the beneficiaries and send a debt collector to recover the money,” Narok Senator ledama Olekina said.
Nominated Senator Tabitha Mutinda questioned how the money was advanced to the groups before the 2022 polls.
“Was this money being siphoned for campaigns or what was it for? A similar thing was also witnessed in Kitui county,” she said.
Kisumu Senator Tom Ojienda wanted to know how such an amount of money could be disbursed without a framework.
Nassir said unless he partners with a financial institution to trail the loans, it will be difficult to recover the money.
“The county getting this money back is going to be an uphill task. We don’t have the capacity to recover the money,” he said.
The governor said the fund has turned into a sinking hole and his administration was grappling with the decision to wind it up.
Nassir said they are working with a new regulation to help manage the county's funds.
“This Fund is as good as dead. We are working on a new legislation that is going to repeal it. We have taken into account all the issues raised and the new regulation will be in place by June this year,” he said.
Olekina said winding the fund and setting up another is not a solution since there is no guarantee that the new one will be devoid of the same challenges.
The Controller of Budget also fingered Mombasa for continuously failing to submit full reports and financial statements on its established funds every quarter.
The county was also put on the spot for lacking enabling legislation to regulate the County Alcoholics Drinks Control Fund and irregular remittances to the County Revenue Fund.