Financial statements do not represent fair position, says report

Auditor General Edward Ouko. [File Picture]

NAIROBI, KENYA: The Auditor General’s report has exposed unverified expenditure running into billions of shillings by central  Kenya counties.

For Murang'a County, the auditor gave the executive an adverse opinion noting the financial statements do not represent fairly the position as at June 30, 2016.

According to the audit report, Murang'a County received Sh5.3 billion from the National Treasury but there was an unexplained difference of Sh155 million in expenditure.

The county also spent Sh56 million for the rehabilitation programme for alcoholics and drug abuse dubbed Kaa Soba without any supporting documentation.

Auditor General Edward Ouko also noted Murang'a County procured branded reader spectacles for the elderly at Sh10 million.

“The county executive did not provide requisitions for the items indicating the need for glasses and how the beneficiaries were identified,” Ouko stated.

Murang'a County also could not account for Sh2.7 million paid to an American non-governmental organisation which donated drugs and medical supplies worth an estimated Sh45 million for shipping costs.

The supply, installation and commissioning of a milk processing plant in Maragua at a cost of Sh250 million was also queried by the auditor.

According to the report, the project would be implemented in two phases –  setting up of the pasteurisation plant which would cost Sh161 million and the second phase which would cost Sh89 million.

“However, a physical verification of the project revealed that 23 months after the commencement of the works, the project was incomplete,’’ Ouko pointed out.

In Nyeri County, the auditor also raised alarm as he gave the executive an adverse opinion on financial statements and records.

Over Sh666 million could not be accounted for as the auditor noted an unexplained variance between the amount of money released by the National Treasury and the funds spent on development and recurrent expenditure.

Unaccounted for drugs at Karatina and Murkurweini sub-county hospitals worth Sh20 million were also queried in the report as there were no records that the drugs were received.

In Meru County, the construction of Kinoru Stadium was highlighted after the contractor who was paid Sh121 million failed to complete the project 18 months after the contract was awarded.