Audit: Shame of counties blowing millions on bogus projects, travel

Auditor General, Nancy Gathungu during the retreat of the Budget and Appropriations Committee on Financial year 2025 budget implementation, at English Point Marina, in Mombasa, on February 5, 2025. [Omondi Onyango,Standard] The Auditor General has highlighted wastage of public funds by counties, raising questions whether taxpayers are getting value for their money. Counties continue to spend millions of shillings on stalled projects, salaries and acquisition of items some of which are non-functioning. Auditor General Nancy Gathungu in the 2023/2024 audit revealed massive irregularities and misappropriation of funds by county governments. In the report, Kilifi County spent over Sh70 million for office furniture and general equipment out of which Sh634,685 related to the purchase was delivered on June 30, 2023. An audit inspection of the items in October 2024 revealed that a 55-inch TV worth Sh151,450 was not functional, eight office chairs and four desks had not been issued while two chairs and office desks were not verified and the assets were not recorded in the assets register. The report flagged an irregularity in payment and supply of a Computed Tomography (CT) Scan Machine. The county paid Sh75.9 million for the CT scan machine with the contract amount paid in full on June 30, 2024. Physical verification in October 2024, about four months later established that the machine had not been delivered with the management claiming the payment was done because the manufacturer would not release the equipment without payment. The auditor general said the procurement was contrary to Section 146 of the Public Procurement and Asset Disposal Act, 2015 which states that no works, goods or services contract shall be paid for before they are executed or delivered and accepted by the accounting officer of a procuring entity. Further a Sh33,499,810 incinerator acquired by the County Government and was delivered on March 5, 2024, had not been used seven months later. A Sh14.49 million x-ray machine was also lying idle. "Physical inspection carried out in October 2024 about eight (8) months later, it was observed that the X-ray machine was not in use and was still in the store. This was contrary to Section 149 of the Public Finance Management Act, 2012," read the report in part. In Tana River County, the audit revealed irregularity in payment of foreign and subsistence travel allowances. The County Executive report revealed spent Sh6,395,500 on staff allowances while attending Jumuiya Trade Investment and Education Exchange Mission in the US. The audit revealed that invitation letters to participants, back-to-office reports documenting the outcome of the mission, lessons learned, and value gained from the conference were not provided for audit review. Further, it revealed no justification for holding a local economic block event outside the country while Kenya Coastal Region has plenty of venues to host such events at a reasonable cost. Specialised medical equipment valued at Sh73,376,300 purchased to equip Hola Level Four the report revealed were kept in boxes awaiting construction of the building and therefore not in use. In Wajir, the County Government spent Sh9,312,053 to repair a generator at the county headquarters. The Auditor General noted that the county government did not justify the expenditure, which was estimated as enough to purchase a new generator, raising concerns of potential excess and wasteful expenditure. In Marsabit, the audit questioned the expenditure of Sh3,399,484 on foreign travel, daily subsistence allowances and air tickets for three county officers who travelled on November 29, 2023, to the United Kingdom to receive three donated used Mercedes Benz ambulances. However, at the time of the audit in September 2024, only one ambulance had been delivered. A review of Machakos County payroll revealed that 67 clinical officers and 61 medical doctors were on the payroll. However, review of the doctor analysis report generated from the Integrated Health Management system revealed that no activity was undertaken by the clinical officers and doctors from September, 2023 when Level 4 and 5 hospitals were digitised and from February to March, 2024 when all Level 3 and 4 were digitised. Samburu County spent Sh1.8 million and Sh1,199,996 on mobile phones and laptops totalling to Sh2,999,996. However, a list of beneficiaries for the mobile phones and laptops and evidence of market survey were not provided. This contravened Section 149 (1)(a)(b) of the Public Finance Management Act, 2012. The report also revealed an irregularity in procurement of mobile phones and laptops by Uasin Gishu County Government. The Department of ICT procured mobile phone model Samsung S23 Ultra and a Macbook laptop computer at Sh430,000 from a local supplier. However, physical verification of the ICT equipment procurement revealed that only the mobile phone was provided for physical inspection. In Nandi County, the audit questioned the expenditure relating to foreign travel and substance which reflected payments amounting to Sh1,761,410 made to three (3) officers towards the attendance of black caucus in the USA. This was however contrary to Public Service Circular OP/CAB.308/018 by the Chief of Staff and Head of the Public Service on suspension of non-essential travel which disallowed such journeys. Further, a review of foreign travel and substance expenditure by the county revealed a payment of Sh1,317,316 made to a state officer to facilitate attendance of the 68th session on the status of women in New York City for 14 days. This was contrary to the period of travel of seven days inclusive of travel days stipulated in circulars No. OP/CAB.1/7A of January 26, 2015, by Chief of Staff and Head of Public Service. In Narok, the county spent Sh313, 587,476 for travel. The amount included Sh4,401,000 spent towards the ear-notching and fitting of transmitters on 20 black rhinos in the Maasai Mara National Reserve. "The fuel consumed during the exercise was not supported with detailed orders and work tickets. Further, delivery notes, counter issue forms, and counter receipt forms were not provided to confirm the amount of Sh.901, 000 spent on immobilisation drugs, reversal agents, darting accessories,s and medical consumables," read the report in part. Busia County spent Sh5.8 million for the acquisition of a refrigerated truck. The vendor sued the County Executive for delayed payment and the county was ordered by the court to pay the principal amount of Sh5,809,460, interest that had accrued over the years amounting to Sh3,601,865, and costs of the suit of Sh341,980, all totaling Sh9,753,305. "Physical verification in September 2024 revealed that the vehicle was parked at the County Commissioner's Offices in Busia Town, was not in use and was in a dilapidated condition. Further, the truck bears a private registration number and has not been transferred to the County Executive. In addition, no evidence was provided for audit on whether the truck had ever been used by the County Executive," read the report. Nairobi County's Dishi na County Programme was also questioned over alleged irregular payment to the implementor. The County Executive entered into a contract with Food for Education on December 5, 2023, for the provision of school feeding services as part of the Dishi na County Nairobi School Feeding Programme for one year at a rate of Sh25 per plate. Meanwhile, Gathungu also flagged stalled projects worth millions of shillings in Siaya County for the financial year 2023/2024. According to the report, an X-Ray machine installed at Got Agulu sub-county hospital was not in use due to the lack of a radiographer to operate it. The report revealed that the amount of money incurred on the project were a waste of public funds. Also in the report is the delay in the construction of perimeter Wall at Migwena Sports Cultural Centre. The report revealed that the County Executive entered into a contract with a firm for the proposed construction of a perimeter wall at Migwena at a contract sum of Sh33.8 million. [Additional reporting by Isaiah Gwengi]

Audit: Shame of counties blowing millions on bogus projects, travel

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