Counties

Auditor General flags Sh12m spent on rent for city MCA offices

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Auditor General Nancy Gathungu. PHOTO | LUCY WANJIRU | NMG

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Summary

  • Nairobi County Assembly is on the spot for spending Sh12.3 million on MCAs office rent without evidence of lease documents.
  • Auditor General has revealed that the rent expenditure was not supported by signed lease agreements between the county assembly and the landlords.

Nairobi County Assembly is on the spot for spending Sh12.3 million on MCAs office rent without evidence of lease documents.

Auditor General has revealed that the rent expenditure was not supported by signed lease agreements between the county assembly and the landlords.

According to the report, Auditor General Nancy Gathungu flagged payments amounting to Sh14.7 million made by the county assembly towards the office leasing scheme.

The report revealed that the assembly spent Sh570 million on goods and services in the financial year ended June 30, 2019, including Sh14.7 million on rental of produced assets.

However, examination of records revealed that the payments were not supported by signed lease agreements between the county assembly and the landlords.

“In the circumstances, it was not clear whether the expenditure of Sh12.3 million was a proper charge to public funds,” read in part the report.

A majority of Nairobi MCAs are operating from rented offices. However, the assembly has been working on ways of bringing this arrangement to an end with the assembly set to spend more than Sh1.6 billion in the current financial year to put up as well as improve offices for MCAs.

As part of the new plan to improve the assembly's infrastructure, Sh1.18 billion will go towards the acquisition of administrative block for nominated members of the county assembly as well as offices for the assembly’s leadership.

Another Sh191 million will be spent on rehabilitation and construction of 30 assembly ward offices, which are said to be in dilapidated situation. This will be done in phases.

The remaining Sh300 million has been earmarked for acquisition of ICT infrastructure, furniture and other equipment.

The construction of the new offices to be housed in a Sh500 million administration block was to commence in 2019 but the project was pushed back as a result of unavailability of the land that had been earmarked for the project.

The project was to take place in phases with the first phase planned for the financial year ended June 30, 2019.

The new block was to be constructed at the parking space between Taifa Road and City Hall Way starting this year with the aim of providing workspaces for the 39 nominated ward representatives, and chairpersons of various House committees.

The assembly has also been depending on a lease agreement to house Speaker Benson Mutura who is entitled to Sh150, 000 a month for rent.