Audit reveals Sh946m hidden in pending Land ministry legal claims

The Land ministry has been hiding pending legal claims of almost Sh1 billion relating to cases concluded by June 2018.

The National Audit Office said the ministry did not disclose to auditors legal pending claims amounting to Sh946,508,404 in the year 2017/18.

The Auditor-General said the claims were not disclosed in the financial statements and no budgetary provision were ever made to settle them.

The report, compiled by former Auditor-General Edward Ouko further reveals that the ministry has not cleared Sh13.8 million in interest on delayed payment of legal claims.

“The interest was as a result of delay by the ministry in paying the decretal sums for various cases against the principles of public finance on prudence and responsible use of public money,” Mr Ouko said in a report of the audited financial statements for the national government entities for the year 2017/18.

The report, which is set for scrutiny by the National Assembly’s Public Accounts Committee (PAC) next month also raised the red flag over loss of public funds on settlement of legal claims.

It revealed Sh112,831,083 expenditure on legal claims arising from a civil case.

“The Commissioner of Lands was sued on the grounds that he prepared and executed a title deed in favour of the plaintiff with full knowledge that the same land was registered to another party. As a result, the government lost Sh112,831,083,” the report notes.

The auditor further faulted the Ministry of Lands over Sh154.3 million that was spent on digitisation of land registries.

He said contracts to digitise Machakos, Kajiado, Nakuru and Kisumu land registries were awarded to three local companies in May 2015 at a combined contract sum of Sh154,280,000.

“However, lack of appropriate scanners and internet has significantly affected the sustainability of digitisation project in the four registries despite incurring significant expenditure,” he said.