Nairobi Governor Evans Kidero was Wednesday put on the spot over failure to account for more than Sh10 billion in local revenue.
Senate’s County Public Accounts and Investment Committee members John Lonyangapuo (West Pokot), Kimani Wamatangi (Kiambu) and Liza Chelule (nominated) said the committee was seeking evidence on how the funds were used to clear an audit query.
“We want to evidence for paying for goods and services at source. We want documentation to show the debts inherited from the defunct local authorities or court orders and minutes for council meetings that authorised the payments,” said Prof Lonyangapuo.
Only Sh1 billion out of the Sh11 billion county revenue was deposited in the County Revenue Fund (CRF) account, according to the committee.
This, according to the Auditor-General’s report is against the public finance management regulations, as the funds are supposed to be banked at the Central Bank of Kenya.
However, the governor took issue with the Senate over the county’s local revenue, saying auditing the funds was a preserve of the MCAs.
“It is the county assemblies that have jurisdiction over locally generated revenue. It has queried and a report has been done. We will present the report,” Mr Kidero told the committee at Parliamentary Buildings in Nairobi yesterday.
But, the senators dismissed the governor’s assertion, saying the Senate is the custodian of county interests has an oversight role on how funds in the devolved units are used.
“Don’t think the hands of the Senate are tied when it comes to a county’s own revenue. If so, then, why is this matter before the Senate committee? asked nominated Senator Paul Njoroge.
The auditor’s report indicated that the county had a weak internal control system to enhance revenue collection and accountability.
The report also raised concerns on an online platform Jambopay that allows users to make payments via mobile phones.
The senators also sought to know why City Hall took a Sh298 million loan without approval from the county assembly, as required by law.
“This is public money. How do you spent without approval of the county assembly who are the representatives of the people? I find some answers tailored to serve a particular interest,” said Ms Chelule.
In response, the county government said funds from the exchequer had delayed and they had to meet the cost of insurance cover to ensure smooth county operations.
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