Senate Public Accounts and Investment Committee has given Kisumu Governor Jack Ranguma two weeks to account for Sh80 million queried in an audit report.
The committee chaired by Kakamega Senator Boni Khalwale demanded to know why the governor had not surrendered Sh61.5 million given by Transition Authority (TA) for the refurbishment of county executive offices and the county assembly.
Khalwale and committee members Muriuki Karue (Nyandarua), George Khaniri (Vihiga), Okong’o Mong’are (Nyamira) and Martha Wangari (nominated) also sought answers on why Sh18.6 million from the defunct Local Authority Transfer Fund was not transferred to the County Revenue Account, and instead only Sh675,635 was deposited.
The senators also took the governor to task to explain why his government failed to close all the defunct local authorities bank accounts as required in the County Governments Public Finance Management Transition Act, and transfer the funds to the County Revenue Account.
However, Ranguma maintained all the finances queried had been used as required and asked for two weeks to furnish the committee and the Auditor General with the right documentation. “We could not surrender funds to TA, which had already been committed. We received the funds two months to the close of the last financial year,” argued the governor.
He continued: “The money was not misappropriated but was committed to do what TA has specified, only that by then we had a hefty salary bill, which had to be cleared. The offices are complete now and will be occupied soon.”
SALARIES ARREARS
Khalwale queried why the governor has not returned the funds, after TA stated there was no progress report from the county government despite numerous reminders. “The funds were for civil works and purchase of the Hansard for the county assembly,” noted Khalwale.
The county boss also told the committee his officers has briefed TA and Controller of Budgets Agnes Odhiambo on the same.
Ranguma, who was accompanied by his Finance County Executive George Okoth and Chief Financing Officer Caifus Kasera, affirmed that his government had challenges closing the defunct accounts, noting they have since complied.
“We delayed to offset outstanding salary arrears and creditors’ cheques. Upon clearance, we closed the accounts and the last one was closed in June 2013,” said Kasera.
Ranguma is among the three governors whose county funds the Senate ordered to be blocked by National Treasury until they respond to audit queries.
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