House team unearths 'plot to loot public funds'

A committee of the local county assembly claims it has unearthed a plan to loot public funds through manipulation of budget.

In its report, the Finance and Economic Planning Committee claims there is a well-calculated scheme to rip off taxpayers with ministries reporting higher expenditure than the actual amount.

The report, which was tabled in the Baringo county assembly on Thursday last week, reveals that the county's 2016-17 annual development plan (ADP) presented to the assembly by the county Treasury and Economic Planning Department indicating the county had over-committed money to projects in the last two years to the tune of Sh485m was not factual.

"The county treasury pointed out that during the last two financial years 2013-14 and 2014-15, a total of Sh839,285,186 was allocated to some line items in development but after preparation of bill of quantities, value of signed contracts rose to Sh1,324,975,344.40 resulting to a budget overshoot of Sh485,690,158.30," reads the report.

"This over-commitment in the ADP (annual development plan) prompted the assembly to question the accuracy of the over-committed funds. This was found out to have been exaggerated and only overshot by Sh267 million," reads the report.

The committee comprising Zacharia Kipkuto (chairman), Risper Kimaiyo (vice chair), Elijah Toroitich, Wesley Lekakimon, Daniel Tuwit, Joseph Makilap and Purity Talam says this amounted to financial misconduct and failure to adhere to the law and regulations of Public Finance Management Act 2012.

"The over-commitments and misleading information for whatever motive amounts to financial misconduct and will lead to disciplinary action of the accounting officers," reads the report in its recommendation.

The report says that various departments declared that they over-committed funds while in reality some even made savings.

In almost all contracts, the county exceeded what it had budgeted for. The Transport ministry declared it overshot its expenditure by Sh107 million, although it actually overshot by Sh20 million. Education and ICT ministries stated they exceeded their budgets by Sh10 million but the actual amount was only Sh1.7 million.

One of the projects under the Ministry of Transport spent four times the budgeted amount. "Warwa-Posta road which had been budgeted to cost Sh18m ended up gobbling Sh75.6m."

Lands and Housing ministry indicated it overshot its expenditure by Sh11m but investigations revealed it only spent Sh1m more. Water and Irrigation, whose budget was reported to have overshot by Sh22.3 million, saved Sh11 million from its budget of Sh244,666,845.