In what appears to be enormous wastage or outright theft of taxpayers’ money in Governor Kimani Wamatangi's administration, Gathungu reveals the county could be losing billions of shillings.
The audit shows systematic payment for goods not delivered, irregular procurement – where tenders are dished out to specific firms – and several unexplained expenditures.
The county government operates 131 bank accounts, 47 of which do not have cashbooks, bank statements or bank reconciliation statements.
“The management did not present bank reconciliation statements for every month to the county treasury and the office of the Auditor General as required,” Gathungu says.
The development comes as the county chokes in Sh6 billion debt even as more than 60 per cent of the county’s income goes to payment of salaries and wages.
The damning revelations are contained in the financial audit report for Kiambu for the financial year ended June 30, 2023.
Gathungu gives an adverse opinion in the report, implying that the county’s financial statements are distorted, misstated and do not accurately reflect its financial performance and health.
Wamatangi was sworn in as Kiambu governor on August 25, 2022, about two months into the financial year under review.
The governor has been at war with other leaders, including MCAs, who have criticised this style of leadership.
According to the report, the county could have lost more than Sh80 million paid for goods not delivered to the government.
The county spent Sh16.59 million to a trading corporation for supply of 13, 063 bags of coffee fertilisers not delivered.
“Further, review of issue and receipt vouchers provided for audit revealed an unexplained balance of 11, 116 bags of fertilisers worth Sh14.11 million, which were not issued and were not in store,” the report states.
The county paid Sh11.20 million for semen, liquid nitrogen, plastic socks, hand gloves and paper towels but only goods worth Sh5.48 million were delivered.
It also procured maize seeds valued at Sh34.78 million from the Kenya National Trading Corporation but goods worth only Sh20.32 million were delivered.
“In the circumstances, the regularity and completeness of the payment made for undelivered goods amounting to Sh80.13 million could not be confirmed,” the report states.
Wamatangi’s administration could not explain Sh615.23 million it reported transferring to other government agencies.
Gathungu reveals that the county could have lost Sh6.76 million paid to staff as meal and facilitation allowances to officers working beyond normal working hours.
“Justification on why staff were getting extra payments for performing their normal duties within their workstations was not provided,” the report shows.
The county paid Sh7.36 million to two legal firms whose procurement was doubted by the auditor.
There were no procurement documents including requisition for the legal fees, contract agreements, tender opening documents and evaluation committee minutes and evidence on procurement method used in selecting the law firms.
The auditor reveals how the county dished out Sh1 million as allowances to officers of a state corporation for activation of fertiliser centres.
The cash was not recorded in the imprest register, and was never surrendered.
Gathungu details how the devolved unit engages in massive procurement irregularities.
The audit flagged irregular procurement, including of direct of procurement, and stalled projects worth more than Sh2 billion in Kiambu.
“Review of procurement records and other supporting documents revealed several irregularities and non-compliance with the Public Procurement and Asset Disposal Act, 2015,” the report shows.
For instance, the county procured goods worth Sh130.80 million from Kenya Medical Supplies Authority but failed to provide procurement documents.
The administration handpicked a firm to provide services for a revenue enhancement initiative – Huduma Mashinani – across all the sub-counties at a cost of Sh4.91 million.
The county also dished out a tender to one firm for the supply of 8,000 fertiliser bags of 50kg worth Sh26.2 million, maize seeds amounting to Sh34.78 million, and 60,000 one-month-old chicks worth Sh18 million.
“There was no evidence that management reported to the authority the direct procurement within fourteen days after the notification of the award of the contract exceeding Sh500,000 contrary to Regulation 90(1)(b) of Public Procurement and Asset Regulations of 2020,” the report states.
The auditor also flags irregular procurement for construction a four-storey hospital block at Bibirioni Level 4 Hospital at a cost of Sh285.99 million.
“Review of the contract document signed on April 9, 2018, revealed that the project was to be completed within 104 weeks. However, as at the time of audit on September 20, 2023, the project was at 70 per cent completion and time progress was 261 weeks hence an extension period of 157 days without approval by the Tender Evaluation Committee,” the report says.
Others are irregular payment Sh1.15 million for a conference facility, irregular purchase of airtime and internet subscription at a cost of Sh6.51 million and irregular procurement of repair and maintenance of motor vehicle services at a cost of Sh6.29 million.
Also flagged are irregular procurement of toners and printing materials at a cost of Sh2.24 million and irregular issuance of Sh2.52 million imprest.
The auditor flags stalled projects in Kiambu including construction of four-storey medical ward at Lari subcounty hospital at a cost of Sh191.80 million and construction of a four-storey medical ward at Wangige subcounty hospital at a cost of Sh220.83 million.
Others are construction of Ruiru Level 4 Hospital central commodity stores at a cost Sh41.97 million, a subcounty office block in Juja at a cost Sh49.45 million and market shed at Kiganjo at a cost of Sh24.37 million.
The report flags stalled construction of sheds at Gitaru market at Sh22.19 million, a fire station at Limuru at Sh24.24 million and construction of Thogoto-Ndaire Dagoretti Road in Kikuyu subcounty at Sh181.52 million.
Improvement to bitumen standard of JCT A2 Kimbo-Matangini Road (4.7km) at a cost of Sh25.59 million and rehabilitation of Kahuguini Secondary-Githima-Karoha access road at a cost of Sh4.25 million have also been flagged.
“Review of the project records revealed that no works were certified as at the time of audit since the last interim certificate of payment was done on March 16, 2020, an indication that the project had stalled and the works discontinued,” the report says.
The county spent a paltry 11 per cent of its income on development against a requirement of at least 30 per cent.
This even 61 per cent of the revenue went to personnel emoluments. Out of the total income of Sh12.87 billion, the county spent Sh7.86 billion on salaries and wages.
The auditor accuses the Kiambu government of mocking public participation by handpicking those attending the sessions in various wards.
During the year under review, the county picked only 50 per ward to attend funded public participation.
Kiambu spent Sh2.25 million on the forums but failed to pay any allowance to the attendees, raising fears the money could have been pocketed by county officials.
“There were no invitations to public participation or mechanisms to facilitate public communications and information access to the residents of Kiambu county,” Gathungu says in the report.
“ln addition, an interview with management revealed that no allowance or facilitation is paid to the residents of the county to participate in the process. However, the temporary imprest of Sh1.5 million was used to facilitate the selected participants, which was irregular.”
