Audit exposes Sh759 million spending gaps in Mining Ministry
The Auditor-General's latest report for the 2023-2024 financial year points to irregularities in procurement, unsupported payments, use of invalid Local Purchase Orders (LPOs), and unaccounted cash.
A new audit has raised concerns over questionable expenditures amounting to more than Sh759 million at the State Department for Mining, highlighting possible misuse of public funds.
The Auditor-General's latest report for the 2023-2024 financial year points to irregularities in procurement, unsupported payments, use of invalid Local Purchase Orders (LPOs), and unaccounted cash.
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One of the key issues flagged is the handling of Sh590.2 million spent on goods and services.
Auditor-General Nancy Gathungu in her report notes that multiple transactions were debited in the ledger and later reversed without supporting documents such as journal entries, approvals, or explanations for the corrections.
The report further reveals that the department paid bills amounting to Sh3.9 million without proper documentation, including invoices, contracts, delivery notes, and inspection reports.
As a result, the accuracy and completeness of pending accounts payable, totalling Sh169.3 million, could not be verified.
The audit also uncovered flaws in procurement processes. During the review period, payments totalling Sh56.5 million were made for various goods before they were inspected and accepted.
"This was contrary to Section 48 of the Public Procurement and Asset Disposal Act, 2015, which provides inter alia that an Inspection and Acceptance Committee shall immediately after the delivery of the goods, works, or services; inspect and where necessary, test the goods received in order to ensure compliance with the terms and specifications of the contract," states in the report.
"In the circumstances, management was in breach of the law."
The report also highlights revenue issues, noting that the statement of receipts and disbursements reflects property income of Sh3.3 billion, including mining royalties amounting to Sh257.3 million.
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