Auditor General questions county assembly’s irregular insurance cover

The Auditor General report questions the Kitui County Assembly's move to incur an extra cost of Sh12.5 million for a group personal insurance cover.

The contract was awarded to the highest bidder at Sh16.2 million against the lowest bidder of Sh3.6 million. The assembly was also faulted for irregular procurement procedures for group personal insurance.

An analysis of the contract awarded to an insurance firm to procure insurance cover revealed the county government did not adhere to the County Public Procurement and Disposal Act of 2005.

The assembly is further indicated to have had Sh8.5 million in unauthorised payments.

The Auditor General reveals the payments were processed without complete authorisation from both the Accounting and Finance officers as required.

The report reads: “This implies that control was not adhered to and expenditure of Sh8.5 million could not be confirmed as a proper charge on public funds.”

In the report, the Auditor General highlights that there was an unaccounted fuel cost totalling up to Sh1.8 million. The report shows that records on fuel usage including bulk fuel register were poorly maintained and no proper documentation to support the same was available.

Members of county assemblies were irregularly paid in terms of allowances. According to the report, the assembly made various payments in terms of night-out conferences and foreign trips. Sh468,000 was paid over and above the normal rates.

“Analysis confirmed that MCAs received higher allowances than the stipulated amount as per duration of the conferences and foreign trips without an explanation.”