Auditor raises flag over Sh3.4b expenditure by Kilifi County

Kilifi Governor Amazon Kingi (PHOTO: Standard)
MOMBASA, KENYA: Kenya’s auditor general Edward Ouko has raised alarm over the acquisition of assets worth Sh3.4 billion in the year ended June 30, 2018, by the Kilifi government.

The report dated February 18 this year reveals how Kilifi County Government acquired assets during the 2017 in a manner pointing at the disregard of procurement laws. During the same period between June 2017 and mid last year, the county government also spent or paid out Sh0.6 billion on incomplete and non-existent projects.

According to the report the county government spent Sh749,162,636 to construct buildings but some of the expenditure is questionable because payment was made before contracts were signed.

Dr. Edward Ouko’s report also reveals that in April 2018 the County Executive spent about Sh2.7 million to pay for the Members of County Assembly MCAs allowances for attending devolution conference in Kakamega County.

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“This was contrary to section 154(1) (a) of Public Finance Management Act 2012 which requires an accounting officer not to authorize the transfer of an amount that is appropriate for transfer to another county government entity or person.

“No satisfactory explanation was offered as to why the county executive paid for the members of County Assembly yet the county assembly has its own budget to finance local travel,” state the report.

The report further states that Kilifi County government cannot also account for Sh0.6 billion spent on other projects some never completed or never existed but money was spent.

The report also reveals that some firms that were awarded tenders did not have requisite documents like tax compliance certificate to demonstrate if they legally exist.

Specifically, the report by Dr. Edward Ouko for the year ended June 30, 2018 questions the payment of Sh7.9 m for the construction of Aza-Moyo Social Hall.

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“The county procured works for the construction of a social hall at Eza-Moyo for Sh11, 995, 659.76….the letter for notification of award was issued on 18 November 26 yet the contract agreement was signed on 10 July 2017 almost 8 months later," states the report.

The AG said that the move by Governor Amason Kingi’s administration was contrary to section 135 (3) of the Public Procurement and Asset Disposal Act, 2015.

“(The Act) requires the written contract to be entered into within the period specified in the notification but not before fourteen days have elapsed  ...the management was a breach of the law,” said the report.Another project in question is the Sh750m Mtwapa Scheme water supply.

Ouko also says that his office could not ascertain the payment of Sh46.6 million for the borehole-drilling rig purchased by the county during the financial year in review.

The borehole-drilling rig was part of specialized plant, machinery, and equipment bought by the county at the cost of Sh.297. 5 million.

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The report says that the part of the cost for the drill, Sh46.4 million was paid before the rig was inspected on February 26, 2018.

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Edward OukoAuditor General