Economy

Audit flags Sh124m ICT Authority expenditure

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Auditor General Nancy Gathungu. PHOTO | LUCY WANJIRU | NMG

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Summary

  • The Information Communication Authority (ICTA) is on the spot for irregularly spending Sh123.9 million from local and foreign lenders in the year to June 2020.
  • Auditor-General Nancy Gathungu says the money was proceeds from grants.

The Information Communication Authority (ICTA) is on the spot for irregularly spending Sh123.9 million from local and foreign lenders in the year to June 2020.

Auditor-General Nancy Gathungu says the money was proceeds from grants.

The amount represents cumulative funds transfers to a speacial project bank account whose expenditure returns had not been submitted to The National Treasury by the close of the financial year.

The Auditor-General has also raised the red flag over the National Optic Fibre Backbone Infrastructure (Nofbi) project expenses of Sh21.1 million, which includes misclassified training and capacity building expenses of Sh376,469 and Sh2,105,991 under the east Africa Regional Transport Trade and Development Facilitation Project.

“The balance also includes a daily and subsistence allowance claim of Sh958,220 an officer. Management did not explain why the officers had not been issued with imprest and whether there was prior authority as per the financial regulations,” Ms Gathangu said.

The audit findings come in the wake of a split in government over plans to end Telkom Kenya’s management of State-owned Sh16 billion fibre optic network that the telco operates without licence.

The ICT Ministry and ICTA are locked in a dispute over how to end Telkom management of Nofbi - which provides telecommunications connectivity in all the 47 counties.

Mr Jerome Ochieng, former ICT Principal Secretary, in March told Parliament that the ministry was not aware of plans to take control of the fibre network from Telkom which has collected Sh1.7 billion from users over the years.

But ICTA is working on transferring Nofbi under its watch amid the parliamentary probe over operations of the fibre network.