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Drought Management Authority in Sh4 billion scam

By Moses Nyamori | Published Fri, November 9th 2018 at 10:10, Updated November 9th 2018 at 11:13 GMT +3
Auditor General Edward Ouko: His report yesterday unearths missing Sh5.1b allocated to Drought Management Authority. [File, Standard]

At least Sh5 billion cannot be accounted for by a State agency tasked with provision of relief food and other drought emergency interventions.

Auditor General Edward Ouko has disclosed that Sh5.1 billion could have been lost in the Drought Management Authority in the last financial year.

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The fund could not account for Sh2.3 billion that comprised payments to various beneficiaries as there was no documents to support the payments.

“In addition, the Hunger Safety Net Programme (GOK component) expenditure of Sh2,312,626,824 that comprised payments to various beneficiaries did not have a documented basis on how the beneficiaries paid were identified and the rates used for paying the beneficiaries, respectively,” reads the audit report.

Ouko said it was difficult to confirm the expenditure in the absence of the documents.
Another Sh719 million meant for “Ending Drought Emergencies (EDE)” could also be supported as there was no documentation.

“The basis of the requisition for disbursements to the various county offices and other procurement activities have not been supported by necessary documentation justifying the extent of the fund required to undertake the given interventions,” he added.

The authority received an additional Sh2 billion for the government on behalf of National Drought Emergency Fund (NDEF).

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There was, however, no financial statements by the fund to explain how the money was spent.

“In addition, maintenance and operation of the Fund has not been in line with the relevant provisions of National Drought Management Act, 2016 as there is no separate cashbook and other books of account in respect of the Fund,” the report added.

The report tabled in the National Assembly by Majority Leader Aden Duale has also questioned the authority’s pension scheme expenses.

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The report noted that the authority included in the financial statements for 2016/2017 expenditure amounting to Sh1,075,400 in respect of the scheme under employees’ compensation and Sh260,000 in respect of general expenses training.

“The total expenditure of Sh1,335,400, therefore, appear not to be a valid charge on the authority’s fund,” stated the report.

The audit queries come just after the government wired Sh3.8 billion to the authority in April in response to drought that hit parts of the country.

At least Sh2.5 billion was spent on food and cash transfer programmes in the drought hit parts while Sh306 million was spent on water trucking and the repair and construction of boreholes.

Another Sh619 million was meant for livestock offtake programmes while Sh114 million for hygiene and sanitation.


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