KIAMBU: Kiambu County government has been on the spot for two weeks running over mis-use of funds by the Executive and County Assembly.
Yesterday, the County Assembly leadership appeared before the Senate's Public Accounts and Investments Committee to answer to audit queries, which included flouting procurement and financial laws.
The senators' grilled Assembly speaker Gathii Irungu over Sh131million worth of cars procured for Members of the County Assembly, through a loan and mortgage account at Family Bank, with bank records showing no entries on the loans withdrawals.
The committee is also probing Sh 1.1million outstanding imprest, Sh 25million for domestic travels and Sh 120million foreign travels, Sh350,000 paid tuition and seminar fees to various institutions, Sh 2.9million sitting allowance and Sh 1.8million untaxed mileage allowance.
According to Auditor General Edward Ouko, out of the 88 MCAs in the county assembly, 18 did not present securities for their loans and mortgages to assist in recovery should they fail to pay back by the end of their terms.
He said the MCAs did not provide either logbooks or title deeds as security.
But Irungu differed, saying from inception the Assembly lacked adequate personnel to assist in proper documentation on the issuance of car loan and mortgages.
"The Clerk has since appointed an officer to assist in the administration of the fund and structures and reporting requirements had been put in place. The officer maintains the books of accounts, individual MCA loans ledgers and cash book," stated Irungu.
He affirmed, "Every month, individual loan statement are obtained from Family bank and forwarded to the MCAs."
The Committee members led by Chairman Senator Anyang' Nyongo (Kisumu) declined to accept the speaker's response, arguing that the audit report has unearthed massive graft in the assembly and demanded accountability by the leadership.
"We will ensure all funds misappropriated are recovered. There is massive misuse of funds by Kiambu County," said Prof Nyongo.
Nyongo and West Pokot Senator John Lonyangapuo questioned why the Sh131 million was deposited in family bank that will attract a fee instead of using the county's finance department to roll out the issuance of loans.
"This is something that should have been done internally even here in Parliament that is what is done why should you outsource the giving of loans when the money is yours," said Prof Lonyangapuo.
Senator Muriuki Karue (Nyandarua) informed the committee that, going by the audit report, it seems some MCAs had taken the loans twice.
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"When you look at the previous black book there is a member who has taken up to Sh11.5 million, why should that happen?” inquired the Senator following a heated debate during the committee hearing on the matter.
Irungu in recognizing the concerns raised by members, said mechanisms had been established to ensure every member repays their loans.
He also denied claims that some MCAs were taking more than the allocated amount.
"We have channeled all their salaries to family bank so that deductions are made from that end, the Sh11.5 million was a typo error and it is supposed to be Sh1.15 million," Irungu said.
Senator George Khaniri (Vihiga) criticized the county assembly for not providing auditors with relevant documentations.
The committee resolved that the auditors should return to Kiambu County and compile a list of all the MCAs who benefited from the loan but have not provided securities.
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