Auditor General flags Sh20 billion expenditure by City Hall

Auditor General Nancy Gathungu, has raised the red flag over estimated Sh20 billion in irregular and disputed spending in Nairobi county.

The report for the Financial year 2022/2023 indicates how billions of shillings of taxpayer’s money disappear at City Hall.

In the report, Gathungu flagged unexplained expenditure, double payment of salaries, allowance and alleged irregular payments.

“Review of the payroll for the period that ended June 2023 shows that three county employees share one bank account. Four of the county officers are also active on the payroll but do not have salaries," the audit report states.

More shocking, the report revealed that two officers were employed on permanent and pensionable terms yet they are over 50 years.

The report also indicates that the county paid more than Sh100 million to 459 employees for allowances that could not be determined, in what could have led to loss of public money.

According to the report, 47 beneficiaries of Nairobi City County Executive Scholarships and Ward Bursaries are from different counties and they received a total of Sh2,504,313.

The report also revealed that 25 students who are beneficiaries of the executive scholarships and ward funds came from private primary schools and received a total of Sh1,165,465.

“Analysis of data provided in support of disbursements indicated cases of issuance of both scholarships and ward bursaries to 683 beneficiaries totaling Sh32.03 million,” the report states.

“...72 students from other counties and private primary schools received a total of Sh2,504,313 and Sh1,165,465 respectively.”

Gathungu revealed that the county could not be in charge of the automated revenue collection system – Nairobi Pay, triggering fears of huge losses of own source revenue.

“No records were provided for audit to show how the county engaged the vendor and the terms of service delivery which exposed the county to possible information confidentiality breach, integrity and availability of the system for service delivery,” the report says.

The report shows that payment vouchers in respect of construction of roads and civil works totaling Sh566.97 million revealed various gaps.

The payment vouchers revealed noncompliance with procurement law, unsupported or failure to attach relevant documents in support of payments, delayed and stalled projects.

The Auditor General further questioned the transfer of Sh620.61 to the defunct Nairobi Metropolitan Services (NMS).

“However, no documentation was provided to confirm the outstanding payments under NMS were transferred to the county and approved for payments appropriately," she said.