County authorities officers inflated the quantity of pending payments owed to suppliers and contractors by virtually Sh60 billion, a brand new particular audit report has revealed.
The report which was handed over to the Nationwide Treasury and to governors final week, reveals stunning particulars on how counties procured companies and went on to pay even when the companies weren’t delivered.
It additionally signifies how county officers have been holding suppliers and contractors at ransom by withholding their funds even when the procured items and companies had been budgeted for.
Shockingly, a variety of counties understated the quantities they owed contractors and suppliers
In a number of the circumstances, county officers inflated quantities to be paid.
Based on our investigations, the Controller of Funds acquired suspicious after counties submitted astronomical figures owed to suppliers and contractors requesting for authorisation for fee.
The figures prompted Ms Agnes Odhiambo, the Controller of Funds to write down to all governors on October 25 final yr requesting for a standing report of pending payments owed by county governments as of June 30, 2018.
“As you’re conscious, counties have been accumulating pending payments for the reason that introduction of devolved governments in March, 2013. The pending payments have elevated considerably and stood at Sh108.41 billion by June 30, 2018 based mostly on figures submitted by the counties to the workplace of the Controller of Funds,” a letter despatched by Mrs Odhiambo reads.
“The pending payments ought to exclude liabilities inherited from the defunct Native Authorities,” she added requesting for the knowledge to be handed in by October 30, 2018.
On October 30, Treasury Cupboard Secretary Henry Rotich directed the Auditor Common to hold out particular audits on pending payments that counties owe suppliers and contractors.
The Sunday Nation has learnt that the Treasury supplied Sh273 million which was paid to varied licensed public accountants who carried out the train on behalf of the Auditor Common.
However curiously, when the train began, counties introduced pending payments amounting to Sh88, 984, 628, 752 to the Auditor Common, a complete Sh19,426,841,248 lower than what they’d demanded for authorisation to pay from the Controller of Funds.
Extra stunning particulars may emerge later because the train progressed.
Out of the particular record of pending payments, auditors established that solely pending payments amounting to Sh51,284,830,129 had been eligible with others amounting to Sh37,701,100,378 had been discovered to be ineligible.
The particular audit report has saved taxpayers from the fee of Sh57,126,639,871 in pending payments which are irregular or fraudulent.
The Sunday Nation has learnt that the difficulty of the pending payments was extensively lined throughout an Inter-Governmental Funds and Financial Council (IBEC) assembly held on June 18 this yr underneath the management of Deputy President William Ruto.
The assembly supplied a framework for decision of the ineligible pending payments.
Consequently on June 19, this yr, Mrs Odhiambo wrote to governors asking for the institution of county pending payments committees, which is able to comprise an unbiased one that shall function the chairperson and county officers from the departments of inside audit, finance, procurement and the division liable for infrastructure.
“Please be sure that the committees are established and gazetted by July 15, 2019,” the letter by Ms Odhiambo reads.
Acording to the particular audit experiences, the county with the very best quantities of legible pending payments is Nairobi Metropolis (Sh10.eight billion), adopted by Mombasa (Sh3.three billion), Garissa (Sh1.92 billion), Wajir (Sh1.7 billion), Turkana (Sh1.71 billion), Kisumu (Sh1.7 billion), Narok (Sh1.55 billion), Meru (Sh1.53 billion), Kiambu (Sh1.16 billion) and Isiolo (Sh1.06 billion).
Based on the report, solely Kajiado County has managed to pay all its legible pending payments.
Counties with the least quantity of pending payments are Makueni (Sh375, 360), Baringo (Sh13.four million), Kwale (Sh14.6 million), Homa Bay (Sh40 million), Lamu (Sh48.9 million), Laikipia (Sh59 million), Uasin Gishu (Sh76.6 million), Nyeri (Sh100 million), Elgeyo Marakwet (Sh126.7 million) and Nyamira which owes suppliers and contractors Sh165 million.
Whereas many of the counties paid a number of the legible pending payments between June 2018 and February 15, 2019, some counties haven’t paid the money owed.
Counties that did not pay legible pending payments are Machakos, Mandera, Nyandarua, Uasin Gishu and Homabay.
Kikuyu MP Kimani Ichungwa who’s the chairperson of the Nationwide Meeting Funds and Appropriation Committee within the N says that pending payments are largely because of poor budgeting particularly within the areas of projected personal supply income.
“They embrace of their budgets unrealistic figures of personal supply revenues which they don’t seem to be in a position to elevate and for the reason that legislation permits for procurement on the premise of an accepted finances, they make commitments on the premise of their accepted budgets which they can not meet as they don’t elevate the revenues they projected,” he says.