Senators want county assembly clerks probed over misuse of public funds
The PAC is urging county assemblies to take corrective measures, ensure prudent financial management, and adhere to existing regulations to prevent further loss of public funds.
County assembly clerks and accounting officers are under scrutiny over financial mismanagement in regional parliaments, with senators pushing for investigations and potential sanctions.
The Senate Public Accounts Committee (PAC) has recommended that the Ethics and Anti-Corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI) probe the officers whose actions or inactions may have led to public funds being lost.
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The concerns revolve around irregular and unsupported expenditures, including travel and subsistence claims, issuance of imprests that were not recovered, and questionable payments to the County Assemblies Forum (CAF).
Some assemblies are also struggling with unsustainable wage bills and ethnic imbalance in hiring practices.
The PAC's review of Auditor General reports from the 2019-20 and 2020-21 financial years highlighted multiple instances of financial mismanagement across various counties including Siaya, Nandi, Baringo, Bomet, Bungoma, Elgeyo Marakwet, Embu, Homa Bay, Kajiado, Kakamega, Kericho, Laikipia, Meru, Nakuru, Tana River, Tharaka Nithi, and Nyeri.
In Siaya, an accounting officer will be surcharged for allegedly approving a payment of Sh240,503 to a member of the county assembly (MCA) who failed to provide proof of travel to Kampala.
The Senate committee also recommended that officers who fail to recover outstanding imprests be sanctioned in line with the Public Finance Management (County Government) Regulations, 2015.
The committee also called for the recovery of Sh5 million paid to CAF and disciplinary action against the officer who authorised the payment.
In Nandi, officers face sanctions for failing to recover imprests amounting to Sh8.54 million given to MCAs without supporting documents. The PAC insists that administrative action be taken against officials who did not provide auditors with necessary records.
The probe has also revealed that county clerks authorised payments to the County Assembly Savings and Credit Cooperative Society Ltd., which then disbursed funds as temporary committee allowances to MCAs.
Some clerks even approved sitting allowances before meetings took place, a direct violation of the law.
"The committee recommends that the EACC cause investigation with a view of initiating prosecution of the accounting officer for breaching the PFM Act, for issuing sitting allowances to MCAs before the sittings took place," the PAC report states.
Mismanagement of county projects
In Baringo, senators flagged a contract variation where the cost of installing a ramp increased from Sh3.10 million to Sh10.58 million. The committee wants the EACC to investigate whether this led to the loss of public funds.
Bomet County Assembly is also under scrutiny for delaying the construction of a perimeter wall and two gates despite contracts being awarded in 2016.
Similarly, in Bungoma, a contract sum for the construction of an office block was increased from Sh447 million to Sh510 million, prompting calls for an audit.
Elgeyo Marakwet officials are facing possible disciplinary action for processing payments using un-serialised vouchers and bypassing the Integrated Financial Management Information System (IFMIS).
The PAC recommends that all future transactions adhere to IFMIS guidelines.
In Homa Bay and Embu, the committee wants officers penalised for failing to provide auditors with supporting documents for expenditures. Additionally, a Sh4 million payment for the installation of automated gates in Homa Bay is under investigation.
Unexplained Covid-19 funds
In Kajiado, senators are calling for the surcharge of an accounting officer who authorised irregular payments to the Society of Clerks at the Table and CAF.
The whereabouts of Sh18.10 million allegedly paid to Covid-19 committees remain unknown, with no evidence to confirm that the funds reached their intended recipients.
"The committee recommends that the EACC investigate the possible loss of public funds amounting to Sh18.10 million with a view of instituting criminal prosecution against the responsible officer(s) if there was a loss of public funds," the report states.
Additionally, Kajiado's assembly faces a probe over the expenditure of Sh5.05 million on asset acquisitions without supporting documentation.
Beyond financial mismanagement, senators are concerned about wage bills surpassing the legal threshold. Some assemblies, including Baringo, have allocated 55 per cent of their total income to wages, far exceeding the recommended 35 per cent limit.
The PAC is urging county assemblies to take corrective measures, ensure prudent financial management, and adhere to existing regulations to prevent further loss of public funds.
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