The latest Auditor General's report indicates that Nyeri County Government irregularly created a Nyeri County Emergency Fund and deposited Sh20 million into the fund account.
The 2013/2014 audit report further says no County Executive minutes were availed as evidence of authorisation to create the fund.
It noted that the county government had issued imprest worth Sh26,818,149.75, which remained unaccounted for as at June 30, 2014.
The auditor also faults the county government for leasing offices, saying the amount spent would be enough to build a new block.
"County government of Nyeri leased a commercial building and renovated the former Town Hall. At the end of the five years lease period, the county government will have spent Sh81,384,118.40. This amount if prudently spent would have been sufficient to construct a modern office block for the county government," revealed Auditor General Edward Ouko.
The county government was also put to task for paying for a Sh9,959,105 Toyota Land-Cruiser from Toyota Kenya on 16 May 2013 before it was delivered contrary to public procurement regulations.
"The county government also purchased bulk fuel worth Sh1,100,000 from three suppliers and they did not maintain a fuel register to record the fuel purchased. The statements of fuel drawn and work tickets of motor vehicles fueled were not attached to the payment vouchers to support the payment," the report states.
The report reveals double procurement of Hansard communication equipment.
Nugatory expenditure
According to audit the Transition Authority through Nyeri Sub-County Treasury AIE Procured Hansard Communication Equipment worth Sh1,900,000 on behalf of Nyeri County Assembly at the beginning of June, 2013.
Records also indicated the county government awarded a similar tender at the end of June 2013 to a different contractor at a contract price of Sh7,099,270.
In addition, it indicates that the defunct Municipal Council of Nyeri could not explain the whereabouts of Sh73, 320,321.
According to the report, the council collected Sh196,099,207 between January and June 2013. However, only Sh122, 778,886 was banked.
The defunct council also collected revenue amounting to Sh165, 482,851 between January and June, 2013. During the same period, the defunct council did not bank revenue collected amounting to Sh23, 701,366.
It indicts the defunct council for making payments towards printing of receipt books in January 2013 at a cost of Sh4, 049,220 yet it was known that the council was to be dissolved the following month, February 2013.
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It emerged that there was no record of receipt of the receipt books despite the amount having paid in full.
Another amount of Sh2,079,987 was paid to a consultancy firm in respect of Kamakwa market.
"This expenditure had not been budgeted for and the expected report for the consultancy services was not made available for audit verification. Further, payments were made in respect of consultancy services rendered in the month of February 2013 amounting to Sh5,809,423.00 despite the fact that the council was to be dissolved. This is viewed as waste of public funds through nugatory expenditure," states the auditor-general in the report.
Ouko notes that most of the bank accounts for the defunct local authorities continued to operate as late as 30 June 2013 in total disregard to the County Government Public Finance Management Transition Act, 2013."
The auditor's report said: "Failure to close bank accounts implied that revenue collections continued to be banked in these accounts, and expenditure incurred, contrary to the law."
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