The County Champion Newspaper

16/08/2024

UPDATE:
Machakos Governor Wavinya Ndeti earlier today received her colleague Governors and dignitaries in her office ahead of the Day Two G-7 Women Empowerment Forum happening now at the Kenyatta Stadium.

16/08/2024

SPECIAL REPORT PART ONE:
EXPOSED: KEMSA ROT AND THE BLAME GAMES
BY THE COUNTY CHAMPION TEAM
Kenya Medical Supplies Authority (KEMSA) top brass has come under scrutiny for dirty deals especially supply and tender awarding scandals among others.
Kemsa has been involved in one scandal after another.
Every other year, Kemsa is embroiled in what are mostly procurement-related scandals.
The award winning agency is known to have poor internal controls, including discrepancies in stock balances, missing drugs and difficulties in monitoring drug distribution.
Past audits have also exposed inconsistencies in Kemsa’s information system, such as unexplained adjustments and overstated prices for expired drugs.
In 2020, KEMSA was allegedly accused of mishandling a Sh7.7 billion tender
A special Audit from the Auditor General has shown the statement of cash flow reflects cash and cash equivalents as at 30 June, 2023 balance of Kshs.4,906,997,098.
However, the balance includes prior year adjustment of Kshs.186,947,924 under operating activities which relates to corrections of earlier transactions under assets, in progress and global fund.
However, the corresponding journal vouchers were not provided for audit.
In the circumstances, the accuracy and completeness of cash and cash equivalents balance of Kshs.4,906,997,098 as at 30 June, 2023 could not be confirmed.
MEDICAL COMMODITIES SOLD BELOW THE SET PRICE
According to the audit report, the total sales revenue of Kshs.8,039,143,44 generated from sale of various health products and technologies.
The Authority bills customers based on the price list captured in the Logistics Management lnformation System (LMIS) ordering tool.
However, warehouse issue report indicates a list of three hundred and sixty{wo (362) medical commodities with a sales revenue of Kshs.3,608,334,804 billed to various customers at Kshs.3,022,990,656 which was below the set selling prices resulting to revenue loss of Kshs.585,344,148.
MEDICAL COMMODITIES TO UNDISCLOSED HEALTH FACILITIES
The total sales revenue of Kshs.8,039,143,44 out of which Kshs.321,171,362 relates to medical supplies procured by the Ministry of Health and issued to twenty{hree (23) county headquarters without providing details of the beneficiary health facilities.
In addition, donated medical supplies of Kshs.572,492,393 were issued to non-existing two hundred and seventy-five (275) sub counties which have been created in the system as health facilities but do not exist physically.
In the circumstances, the accuracy and completeness of the sales revenue value of Kshs.8,039,143,444 could not be confirmed.
LACK OF FUEL REGISTER
The statement of financial performance reflects use of goods and services amounting to Kshs.2,003,659,568 which as disclosed in Note 12(b) to the financial statements includes Kshs.47,030,205 in respect of fuel and oil.
However, management did not maintain a fuel register and no reconciliation was performed for the expenditure reflected in the supplier fuel statement.
In the circumstances, the accuracy and completeness of expenditure on fuel and oil amounting to Kshs.47,030,205 could not be confirmed.
UN-APPROVED EXCHANGE OF PARCELS OF LAND
As previously reported, the land balance includes a parcel valued at Kshs.'151,538,002 situated along commercial street in Nairobi.
According to a deed of exchange dated 28 April, 2016 this first parcel of land measuring approximately 0.7676 belongs to a private company while a second parcel of land situated in Nairobi measuring approximately
0.1329 hectares belongs to KEMSA.
The parties agreed to exchange these parcels of land without an approval from the minister responsible for health and the National Treasury.
MISSTATED INVENTORY VALUES
The inventories balance includes units received from Global Fund and other program commodities valued at Kshs.303,514,749.
However, the commodities were erroneously issued to health facilities at a unit price of one shilling instead of the carrying amount resulting to overstatement of inventory by Kshs.303,509,260.
This was contrary to IPSAS which states that 'where inventories are acquired at a nonexchange transaction, their cost shall be measured at their fair value at the date of acquisition.
OVERSTATEMENT OF STOCK BALANCES
The inventory balance includes Kshs.6,664,823,360 relating to two hundred and forty seven (247) medical commodities.
However, review of opening inventory, receipts, issues, expiries and damages from these products indicated a closing balance of Kshs.6,361 ,251 ,822 resulting to unreconciled and unexplained variance of Kshs.303,571 ,538.
UNRECONCILED STOCK LSSUANCE
The inventory balance includes one hundred and ninety-one (191) medical commodities whose available stock for issue was 13,988,323 units valued at Kshs.2,228,938,380 but the warehouse issue report indicated issuance of 14,601,300 units valued at Kshs.2,661,049,865 resulting to unexplained and unreconciled variance (over issuance) of 612,977 units valued at Kshs.432,1 1 1 ,485.
In addition, the over issuance includes 287,284 units for eight three (83) commodities valued at Kshs.264,465,919 whose available stock balance was nil as reflected in warehouse management system.
IMPROPER STOCK ADJUSTMENTS
The inventories balance was arrived at after adjusting commodities worthy Kshs.81,732,145 explained to have historical issues and batch switch among other reasons.
However, these products could not be traced in the warehouse.
In addition, inventories schedules reflect adjustments for expiries of Kshs.1 ,331 ,441 ,264 while Note g reflects inventory adjustment variance (expiries and damages) amount of Kshs. 1,21 3,71 5, 1 86 resulting to unexplained variance of Kshs. 1 1 7,726,078.
UNACCOUNTED FOR INVENTORY OF MEDICAL COMMODITIES
The inventory balance of Kshs.12,899,915,421 includes Kshs.5,294,325,070 in relation to four hundred and forty-two (442) medical commodities.
However, review of these four hundred and forty-two (442) medical commodities' opening inventory, receipts, issues, expiries and damages indicated a closing balance of Kshs.8,800,283,288 resulting to unreconciled variance of Kshs.3,505,958,218.
These discrepancies represent undisclosed and unaccounted for medical commodities.
RETROSPECTIVE RECEIPTS AND LSSUANCE OF COMMODITIES
The inventory ledger indicates system receipt of medical commodities amounting to Kshs.83,826,000 whose physical delivery were indicated to have been made during the year 2020.
However, the inventory ledger did not indicate a corresponding issuance of these commodities despite the items not being included in the inventory closing balance.
NON-ADHERENCE TO CREDITS LIMITS
The receivables from exchange transactions balance of Kshs.6,008,541,865 out of which Kshs.3,079,326,856 relates to county governments while the balance of Kshs.2,892,174,856 relates to other credit customers.
However, it was noted that trading with customers beyond the 30 to 45 days credit limit continued contrary to Paragraph 2.7 of the Kenya Medical Supplies Authority Credit Policy 2014.
In the circumstances, the accuracy and completeness of receivables from exchange transactions balance of Kshs.6,008,541,865 could not be confirmed.
UNALLOCATED CUSTOMER ACCOUNT
The statement of financial position reflects hade and other payables balance of Kshs.8,602,982,309.
The balance includes customer unallocated payment of Kshs.35,928,606 received through direct bank deposit.
An amount of Kshs.27,861,163 is yet to be identified and allocated while the balance of Kshs.8,067,443 in relation to customers whose details were identified but yet to be allocated to respective customer accounts.
In the circumstances, the accuracy and completeness of customer unallocated payment balance of Kshs.35,928,606 could not be confirmed.
MORE TO FOLLOW……………..

15/08/2024

UPDATE
MACHAKOS GOVERNOR HOSTS G7 GOVERNORS IN HER BACKYARD
By Daniel Nzia Senior Writer
Machakos Governor Wavinya Ndeti has today received six women governors under the auspices of G7 who will be in the county for a two-day development wirking tour.
Wavinya, who received her colleagues at a Machakos hotel, said the forum will serve to showcase the gains of devolution and exchange governance ideas.
The county chief said the climax of the forum will be tomorrow at the Kenyatta Stadium in Machakos, where over 10,000 women will congregate for the activation of the G7 caucus.
Kirinyaga governor Anne Waiguru, who is also the Council of Governors (COG) chairperson, said the idea of G7 was to encourage those aspiring for leadership positions.
She said they were working on a formular to grow from G7 to G24 in the 2027 general election.
"We are hoping our journey would move us from G7 to G24 come 2027," said Waiguru.
The Kirinyaga governor encouraged male colleagues to support women to deputise them.
Waiguru also declared the G7 was behind the embattled Meru Governor, Kawira Mwangaza, who is staring at an impeachment.
During the visit, the G7 county chiefs joined their host in launching the construction of a number of mega development projects.
The projects included Mavoko Level Four hospital,Muindi Mbingu Level Six hospital in the proposed new Machakos city, Machakos Sports Complex near people's park and Kyamutheke Vocational Training Centre among others.
The host governor was accompanied by ministers Onesmus Kuyu, Nathaniel Nganga, Catherine Mutanu,Sharon Muasya and MCAs led by Majority Leader Nicholas Nzioka alias Wangondi among other top county government officials.

15/08/2024

UPDATE:
President William Ruto has said Eldoret has grown from a settlement centre to a vibrant municipality, establishing itself as a key investment hub.

He said its elevation into a city will attract more and quality investments, presenting an opportunity to harness its full potential.

Ruto spoke today at the Eldoret Sports Club in Uasin Gishu County, presided over the conferment of City status to Eldoret Municipality.
PHOTOS/AGENCIES

15/08/2024

UPDATE
AUDIT COMMITTEE TAKES INSTITUTIONAL HEADS TO TASK OVER AUDIT QUERIES
The Public Accounts Committee on Education and Governance chaired by Jack Wamboka on Wednesday took institutional heads who appeared before the Committee to task, over various audit queries as raised by the Report of the Auditor General.

The Members were reviewing the audit reports of the period between 2018/19- 2020/21 Financial Years from various institutions including Chuka Technical and Vocational College, Kiirua Technical Training Institute,Muraga Technical Training Institute,Kaelo Technical and Vocational College, Kenya Methodist University and Tigania East Technical and Vocational College.

Kiirua TTI Principal, Dr Jackson Mbae was taken to task after he failed to justify a Kshs. 4 million expenditure which had no supporting documents attached to show Board approvals. In the matter, project with an initial value of Kshs.10 million had shot to 14 million-a 40% total variation way beyond the 25% threshold. This lead to the principal being surcharged for not providing sufficient information to shed light on the query.

Members also noted irregular awarding of tenders with the institutions denying the lowest bidder the contract. Kiirua also had an 82 per cent predominant staff complement which is against the law.

Similarly, the Kenya Methodist University (KeMU) Vice Chancellor (VC) had a difficult time explaining why he wished away 7 students declared as Government Sponsored students,but who had not placed by KUCCPS, and still remained unaccounted for.

Members also noted the 1,305 students placed by KUCCPS but did not enroll at the University. At this point, the Committee Members sought what the Vice Chancellor was doing to follow up on them, and the measures put in place to abate such waste in the future.

The Committee was appalled by a further revelation that forty-five (45) out of the seventy-six (76) students whose capitation amounting to Kshs. 2,050,614.00 was disbursed, comprised of duplicates in the funding list. For this reason, on 21st May 2024, the University was forced to refund an amount totaling to Kshs. 2,013,800.29 for 42 students.

On the other hand, the Committee noted that records of Tigania East Technical and Vocational College showed that the Board of Governors had been issued with written appointment letters and appended their acceptance, but the members had not been gazetted.

Further, the college was found to be non-compliant with the law on ethnic composition as 81% of the employees were from one ethnic community.

However, the lawmakers acknowledged that the institution had since made strides and scaled down the majority ethnic composition to 52% from the local community.

The college was further faulted for lack a risk management policy. The institution also lacked several other statutory documents such as an approved risk management policy,an approved Human Resource Management Policy and an approved Human Resource Policy.

The salary structure and the approved staff establishment were also missing forcing the legislators to give the College two months to reconcile with the auditor and report back to the Committee.

On the other hand, Kaelo Technical and Vocational College records had not been provided during audit.
The principal was directed by the Committee to adhere to the law and respect the audit cycle and facilitate audit officers with the necessary supporting documents, failure to which the Committee would enforce punitive measures.

The Principal Cecilia Mwongera was also tasked by Members to follow up on the Institution’s title deed from the National Land Commission as the financial position reflected a nil balance in respect to property, plant and equipment.

The Committee leant that the College has two (2) parcels of land measuring ten (10) acres, buildings, office furniture and computer acquired from the College’s mentoring institution. However, the Committee noted that the College had not conducted a valuation of the property.

Additionally, the College had only spent Kshs.2,243,515 against a budgetary allocation of Kshs.8,378,700 resulting to an under-expenditure of Kshs.6,135,185 or 73% of the budget.

The principal was asked by the committee to put measures in place to enhance revenue collection and proper planning to ensure full absorption of expenditure.

Members also delved on the audit queries contained in the financial records of Murang’a Technical Training Institute.
The Institute was found to have acquired an equipment for agricultural value addition (Milk and Meat Processing Plant) at a cost of Kshs.102,207,419 in 2019. However, physical verification carried out in April, 2022 had revealed that the milk and meat processing plants had not been commissioned thus remaining idle.

Members noted with concern laxity on the part of its principal Mrs Purity Ndigah to have the matter sorted out.

“It is sad that the government pumps in a lot of money which ends in white elephant projects due to under utilisation of the resources. These well thought initiatives without the proper technical personnel is a complete waste of public money." Mangale Chiforomondo (Lunga Lunga).

The principal was also tasked to follow up on title deed of the 9.81 hectares of land donated by Muraga Secondary School, after it was reported that the Institute has not acquired ownership documents for the property.
SOURCE/THE PARLIAMENT OF KENYA

14/08/2024

14/08/2024

DOWNLOAD THE COUNTY CHAMPION EPAPER 236
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13/08/2024

UPDATE:
YOUTHS WANT "YOUTH FRIENDLY" HEALTH WORKERS IN REPRODUCTIVE HEALTH SERVICES OUTLETS
By Daniel Nzia Senior Writer
Youths in Matungulu sub county have asked the county government of Machakos to ensure they were served by youthful health providers in the area of reproductive health.
They said they would wish to be served by their age mates who were able to understand and communicate with them effectively.
"We find it disturbing to be attended to by elderly health workers whenever we sought reproductive health services in health institutions especially while collecting protection gears(read condoms)," they told Governor Wavinya Ndeti at Kisukioni Deputy County Commissioner's offices.
While reacting to the youth's concerns, the county boss challenged the youth to prioritize abstinence from s*x and focus on building their careers.
She urged the youth to use protection to avoid contracting HIV and other s*xually transmitted diseases.
"We are experiencing many cases of teenage pregnancies which have continued to burden the victim's parents," added Wavinya.
Matungulu Assistant County Commissioner Maryanne Nduati lamented the excessive consumption of counterfeit alcohol by local youths.
"Some youths who had been enlisted to undertake enumeration work could not meet their targets due to alcoholism," she said.
The governor, who also met youths in Kangundo sub county, was accompanied by ministers Onesmus Kuyu Muia,Nathaniel Nganga,Sharon Muasya,Dr Consolata Mutisya and John Kilonzo and a host of chief officers.

13/08/2024

UPDATE:
BUSIA COUNTY EMERGES THE BEST IN THE JUST CONCLUDED MOSQUITO NET DISTRIBUTION CAMPAIGN
Busia County has emerged as the top performer in Kenya's recent long-lasting insecticidal mosquito net (LLIN) mass distribution campaign, achieving an impressive coverage rate of 98.67% where 763,556 out of 771,501 nets were issued to 220,811 registered households in a span of 5 days.

The county's exceptional performance was highlighted in a report released by the Ministry of Health few days ago, with the County Malaria Coordinator, Dr. Onyango Oluoch attributing the success to effective coordination between the State Department of Public Health led by its Principal Secretary, Ms. Mary Muthoni, who officiated the launch, County health officials led by Arthur Odera who supervised in totality the distribution, local leaders, and community health promoters.

The achievement is expected to significantly impact malaria prevention efforts in Busia, a region historically prone to the disease.

Key message however remains; community members to constantly sleep inside the provided mosquito nets to reduce malaria burden.

13/08/2024

UPDATE
THERE IS NEED FOR HEALTH REGULATION IN THE ERA OF ARTIFICIAL INTELLIGENCE, SAYS DR YUMBYA
By Daniel Nzia Senior Writer
The immediate former Machakos county minister for health, Dr Daniel Yumbya, has landed an international job.
Dr Yumbya who tendered is resignation to Machakos Governor Wavinya Ndeti is now the Director, International Association of Medical Regulatory Authorities (IAMRA).
He gave a keynote address during the 26th Association of Medical Councils of Africa (AMCOA)annual Conference at Avani Resort , Livingstone, in the republic of Zambia on Monday.
The theme of the conference is Health Regulation in the Era of Artificial Intelligence (AI).
He underscored the need to adapt regulatory framework that aligns with rapid advances in artificial intelligence (AI) technology ,emphasizing the need for health care providers and regulators to focus on several health related issues.
They include understanding and exploring how Artifical Intelligence is reshaping healthcare delivery and its implications for medical regulation.
Others include formulating strategies to effectively regulate AI applications in healthcare and addressing ethical considerations and ensure that AI in Healthcare adheres to high standards of practice
Dr Yumbya emphasised the need for fostering collaboration among African medical councils to share knowledge and best practices in AI regulation.
He challenged health experts in the Africa continent to use AI to promote medical tourism by setting up specialist hospitals in tourist attraction centers and also to set up Telemedicine hubs in order to enable sharing of specialist services to our people
‘’AI is a moving target,let’s not be left behind," said Dr Yumbya.

12/08/2024

UPDATE
MAKAVETI-IIYUNI ROAD TO BE TARMACKED,SAYS GOVERNOR WAVINYA
By Daniel Nzia Senior Writer
Residents of Kalama Ward in Machakos County have a reason to smile after Machakos Governor Wavinya Ndeti announced plans by her government to tamarc the Makaveti-Iiuni road.
The governor said the construction of the road would ease transportation of farm produce and the general public.
She was speaking at Kyangala in Kalama Ward during a public participation forum.
The county boss further announced that the government would tilt the budget towards youth empowerment.
Promising to walk with the youth across the county, Wavinya said the government will give them government tenders.
She directed chief officers in the relevant departments to start the process of registration of youths in clusters of 10 or more so that they benefit from government contracts.
"I direct the concerned officers to start the registration process of target youth within the next two weeks and submit them to my office for the necessary action," added the governor.
She said the youths would also be assisted with tents and chairs,water tanks and machines start car washes,and irrigation equipment to empower them financially.
Wavinya asked wananchi to assist her in erradicating theft of drugs in health facilities by reporting suspects.
She revealed that four county workers have been arrested for stealing drugs, adding "they steal and open chemists at the expense of the sick,".
The Leader of Majority in County Assembly of Machakos Nicholas Nzioka alias Wangondi took the Kalama Ward Member of County Assembly Boniface Maeke head on for abandoning the electorate and instead spent much of his time insulting the governor in funerals.
The ceremony was attended by ministers Onesmus Kuyu Muia, Nathaniel Nganga,Rita Ndunge, and a host of chief officers from the government.

12/08/2024

GARISSA HOSTS ITS FIRST EVER COG CONSULTATIVE MEETING
Garissa Governor Nathif Jama and his guest Governor Gladys Wanga, Governor Homabay County have this morning opened a quarterly consultative meeting for county executive committee members for health from all the 47 counties.

Discussions centered on the implications of the recent court ruling on the UHC Act as well as deliberation on key emerging issues in the health sector.

Governor Jama called for more support for devolution structures, noting that the impending Sh20 billion reduction in County allocations from the national treasury was a major challenge.

Governor Wanga who is the vice-chair health committee at the COG, echoed Governor Nathif sentiments, saying support for devolution was paramount since it had greatly improved access to health services at all levels and across all health building blocks.

“Even the worst form of devolution better off than any form of centralized system,” she said.

In attendance are Dr. Michael Kibiwott Chair CECM Health Caucus, Dr Zeinab Gura representing the PS Medical Services, Mary Mwiti - CEO COG, Khatra Ali - Director Health Services at COG, representatives of various development partners, host CECM Health Garissa Ahmednathir Omar leading a team of Health CECMs from over 30 counties.
BY GOVERNOR PRESS

12/08/2024

UPDATE:
Swedish Ambassador to Kenya, Caroline Vicini, arrives at Makueni County Headquarters in Wote for a meeting with Governor Mutula Kilonzo Jr

12/08/2024

UPDATE:
Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Dr. Musalia W Mudavadi arrived in Dubai ahead of a Joint Commission of Cooperation between the Governments of Kenya and the United Arab Emirates in Abu Dhabi.
The PCS was received by U.A.E's Khalifa Shaheen Almarar, Minister of state and Omran Sharaf Al Hashmi, Assistant minister of foreign affairs for advanced science and technology.
Also present was chargé d'affaires Kenyan Embassy in Abu Dhabi Mr. Cosmas Kimutai.
PHOTOS/COURTESY

12/08/2024

SPECIAL REPORT:
NO VALUE FOR MONEY: STATE AUDITOR EXPOSES MASSIVE NG-CDF MESS IN MATUNGULU CONSTITUENCY
BY COUNTY CHAMPION TEAM
Matungulu Constituency in Machakos County cannot account for millions of shillings they received under National Government Constituency Development Fund, the Auditor General has reported.
The CDF management could not provide documentation to support the spending.
In some cases projects were incomplete or did not provide value for money.
UNPRESENTED AND STALE CHEQUES
The statement of assets and liabilities reflects cash and cash equivalent balance of Kshs.29,4'l 1,709.
However, review of the bank reconciliation statement for the month of June, 2023 revealed unpresented cheques amounting to Kshs.10,422,454 out of which Kshs.1,670,000 related to bursaries payments whose cheques had not been presented to the banks.
No explanation was provided for bursaries cheques that had remained unpresented as at 30 June, 2023 some of which dated back to August, 2022.
In the circumstances, the accuracy and completeness of cash and cash equivalent balance of Kshs.29,411,709 as at 30 June, 2023 could not be confirmed.
UNSUPPORTED BURSARY PAYMENTS
The statement of receipts and payments reflects an amount of Kshs.50,091,813 in respect to other grants and transfers.
lncluded in the amount are bursaries disbursements of Kshs.29,651,250 and Kshs.7,209,496 for Secondary schools and Tertiary institutions respectively.
However, the acknowledgment receipts were not provided for audit.
Further, review of the bursary award records revealed that the Management did not have an approved criteria for selection and award of bursaries to the beneficiaries.
Further, the documents provided to support the payments revealed the following anomalies:
-Management did not provide the vetting and approval committee minutes indicating how the beneficiaries were selected, list of beneficiaries showing all beneficiaries selected to support how the bursaries were disbursed.
-Lack of summary of disbursement schedules to institutions for confirmation of the amount disbursed to each institution and beneficiary.
-The final list of the beneficiaries who were vetted and awarded bursaries was not provided.
The names in the payment schedules provided could not be
confirmed to be of those vetted and awarded beneficiaries during identification of needy students.
-In the circumstances, the accuracy and completeness of bursaries disbursements amounting to Kshs.36,860,746 could not be confirmed.
BASIS FOR CONCLUSION
UNSATISFACTORY IMPLEMENTATION OF PROJECT
The statement of receipts and payments and as disclosed in Note 7 to the financial statements reflects transfers to other government units amount of Kshs.36,428,025 which includes transfers to secondary schools of Kshs.14,220,000.
However, physical inspection of the projects conducted in the month of March, 2024 revealed the following anomalies:
THE MATHEINI SECONDARY SCHOOL PROJECT
The project involved renovation of two (2) classrooms at a contract sum of Kshs.1,400,000.
The renovation works were however poorly done as the floors were in a dilapidated state.
In addition, the tie beams, rafters, collar plate used were smaller than the size indicated in the bill of quantities.
THE SA NGULUNI SECONDARY SCHOOL PROJECT
The project entailed construction of two (2) classrooms at a contract sum of Kshs.3,700,000.
However, the project under construction was a three (3) classroom storey and ablution block, which was incomplete.
Further, the Fund Management varied the scope of project without the approval of the Constituency Development Fund Board.
In addition, the project had no signage within the construction zone indicating the contractor, the tender, contract period and the financier.
In the circumstances, the public did not obtain value for money from the expenditures incurred on the two (2) projects.
MORE TO FOLLOW.....

12/08/2024

AUDITOR EXPOSES NG-CDF ROT IN UNEXPLAINED EXPENDITURES
Auditor General Nancy Gathungu has once again lifted the lid off what could be one of the greatest misappropriations of the NG-CDF.
In her 2023 audit report, bursary funds, constituency-funded sporting activities emerged as some of the avenues used to siphon millions of cash.
Recently, President William Ruto cautioned Members of Parliament against misuse of CDF funds telling them to account for the Ksh.57 billion National Government Constituency Development Fund (NG-CDF)funds allocated this year.
Has your MP delivered? This week The County Champion Publishers will focus on Constituencies in Lower Eastern.

12/08/2024

SPECIAL REPORT:
AUDITOR EXPOSES NG-CDF ROT IN UNEXPLAINED EXPENDITURES
Auditor General Nancy Gathungu has once again lifted the lid off what could be one of the greatest misappropriations of the NG-CDF.
In her 2023 audit report, bursary funds, constituency-funded sporting activities emerged as some of the avenues used to siphon millions of cash.
Recently, President William Ruto cautioned Members of Parliament against misuse of CDF funds telling them to account for the Ksh.57 billion National Government Constituency Development Fund (NG-CDF)funds allocated this year.
In Mwingi Central constituency, officials were unable to produce documentary evidence to prove the spending that runs into millions.
INACCURACIES IN THE FINANCIAL STATEMENTS
Review of the financial statements presented for audit revealed the following anomalies;
-The statements of receipts and payments reflects a deficit of Kshs.12,778,540 while
the statement of financial assets and liabilities reflects Kshs.12,671,*0 resulting to
unexplained difference of Kshs. 1 07,000.
-The adjustment of Kshs.457,784 has not been included in the final adjusted balance.
-The financial statements reflects Project Management Committee
(PMC) opening bank account balance of Kshs.2,879,862 while the previous audited
financial statements reflect Kshs.1,153,146 resulting to an unexplained variance of
Kshs.1,726,717.
-The outstanding use of goods and services
amount of Kshs.1,626,325 while the summary statement of appropriation reflects
negative Kshs.2,372,525 resulting to an unexplained difference of Kshs.3,998,850.
ln the circumstances, the accuracy and the completeness of the above amounts and
balances reflected in the financial statements could not be confirmed.
The financial statements reflects use of goods and services expenditure amounting to Kshs.10,638,631.
The amount includes Kshs.2,277,000 relating to domestic travel and subsistence
However, the supporting documents including payment vouchers amounting to Kshs.1 ,200,000 were not provided for audit review.
ln the circumstances, the accuracy and regularity of the expenditure amounting to
Kshs.1,200,000 could not be confirmed.
UNSUPPORTED FUEL AND MAINTENANCE EXPENDITURE
The statement of receipts and payments reflects use of goods and services amount of
Kshs.10,638,63'.
The amount includes supply of fuel, oil and lubricants amount of Kshs.3,648,926 but the respective payment vouchers were not supported with detailed orders.
Further, the amount includes Kshs.943,175 incurred on routine maintenance of two (2) motorvehicles.
However, there was no evidence that post inspection report was done by the sub-county mechanical officer before payment was made.
ln the circumstances, the accuracy and completeness of fuel, oil and lubricants and
routine maintenance-vehicles and other transportation equipment expenditure of
Kshs.4,592,101 could not be confirmed.
UNSUPPORTED BURSARY DISBURSEMENTS
The statement of receipts and payments and Note 8 to the financial statements reflects other grants and other transfers amount of Kshs.52,425,177. lncluded in this amount are bursaries of Kshs.45,329 ,822 oul of which bursaries totalling Kshs.44,960,049 were not supported by acknowledgement receipts.
Further, bursary disbursements of Kshs.3,915,750 to various secondary schools were misclassified under tertiary institutions while bursary for tertiary institutions amounting to Kshs.9,043,500 were misclassified under secondary schools.
ln addition, the annual expenditure returns reflected duplicate payments resulting to overstatement of bursary expenditure by Kshs.3,096,000.
ln the circumstances, the accuracy and completeness of bursary disbursements totaling Kshs.45,329,822 could not be confirmed.