Senate committee calls for forensic audit of Nairobi County Assembly finances

A Senate committee has requested the Auditor General to conduct a detailed investigation into the financial records of the Nairobi City County Assembly over the past four years.

This comes after the Ethics and Anti-Corruption Commission (EACC) was called to conduct an inquiry within the Assembly to uncover individuals responsible for the misappropriation of over Sh1.3 billion allocated to the County Assembly.

The revelations surfaced during a probe by the Senate County Public Accounts Committee into the Auditor General's reports spanning four financial years, revealing a pattern of interdictions and suspensions within the County Assembly's accounts department.

The Homa Bay Senator Moses Kajwang-led committee painted a grim picture of the County Assembly's financial management.

The committee expressed concern over the ineffectiveness of the audit committee, deficiencies in primary oversight, and the complete dysfunctionality of primary controls.

The committee's dismay stemmed from the recurring adverse audit reports received by the Assembly for four consecutive years, indicating a consistent inability to produce error-free financial reports.

Notably, the Assembly failed to adequately account for the Sh1.3 billion disbursed in the 2020-21 financial year.

Moreover, it was disclosed that the Assembly could not substantiate certain expenditures with supporting documents. Instances of unauthorised payments were also noted, persisting since the Assembly's establishment in 2013.

Of the 27 queries raised by the Auditor General in the 2020-21 financial year, the Assembly leadership provided a comprehensive response to only one.

Criminal culpability

"What we have been treated to is beyond audit. Documents signed by an interdicted officer cannot be admissible before the committee. EACC must carry out a forensic audit of the Nairobi County Assembly while the DCI must move and determine criminal culpability because the issues in the Assembly go beyond Audit," Kajwang said.

Senate County Public Accounts Committee Chairman Moses Kajwang'. (Photo: Senate)

This came to light after it was discovered that an unauthorised individual had signed the financial statements for the Financial Year 2020-2021.

"We will not be able to get into the substantive issues of the report if the report was signed by a person not qualified. The County Assembly of Nairobi violated laws, the Public Audit Act, the PFM Act and the Constitution. This is the most untidy report we are seeing," Kajwang' stated

The ODM Senator noted that his committee couldn't process a report, which he claimed was a forgery.

"A student who comes to class regularly cannot have an adverse opinion for four years. The County Assembly of Nairobi has had persistent breaches of the Public Finance Management Act. This one goes beyond audit. This requires investigations," he added.

Going further, the committee also intends to enlist the Institute of Certified Public Accountants of Kenya (ICPAK) to investigate and discipline two of its members working within the Assembly for professional negligence.

During the hearing, Nairobi County Assembly Clerk Edward Gichana and County Assembly Speaker Ken Ng'ondi faced scrutiny regarding their administration's receipt of four adverse audit opinions.

Gichana attributed the challenges to political transformations within the Assembly, citing numerous acting appointments during the audit period.

Senator Richard Onyonka urged the Speaker to adhere to the provisions of the Public Finance Management Act, emphasising the need for a bureaucratic framework to improve financial management within the Assembly.