Auditor reveals how Nairobi swindled billions of shillings

Auditor General Edward Ouko. [File, Standard]

Auditor General Edward Ouko has unearthed unaccounted expenditure running into billions of shillings, with huge discrepancies, mismanagement of funds and spending at source of Nairobi County’s revenues.

In his latest audit report for the year ending June 30, 2017, which he tabled at the Senate yesterday, the auditor reveals stalled projects despite huge allocations made and contractors paid.

In a well-choreographed scheme to fleece the taxpayer, the auditor also reveals how the National government paid the County government millions of shillings for the free maternity services at various health facilities but at the time of review, there were shortfalls resulting in an adverse service delivery.

The county collected Sh10.9 billion in the year under review compared to Sh11.2 billion own source of revenue, but the audit revealed that only Sh2.4 billion representing 22 per cent of revenue collected, was banked in the County Revenue Fund. This means Sh8.5 billion was spent at the source contrary to Public Finance Management Act.

The county executive budgeted to spend Sh33.5 billion, but the actual expenditure as reported in the statement was Sh24.9 billion, resulting in under expenditure of Sh8.5 billion.