Taxpayers' money wasted in county assemblies, audit reveals

A report by Auditor General Nancy Gathungu has cast a harsh spotlight on the financial practices within county assemblies, revealing widespread mismanagement, dubious payments, and a blatant disregard for public funds.

According to the audit, these regional governments, including their key leaders; Members of County Assemblies (MCAs), speakers, and clerks have engaged in reckless spending, with little to no accountability for taxpayer money.

In her 2023-24 financial year report, Gathungu outlines shocking findings that expose a systematic pattern of financial irresponsibility, from unapproved allowances to questionable procurements and unverified travel expenses.

The audit shows that county leaders have used taxpayers' funds for dubious purposes, including extravagant trips and unsubstantiated claims.

The report paints a grim picture of financial mismanagement, with no clear mechanisms to ensure accountability or justify many of the reported expenditures.

One of the most concerning cases highlighted is that of Taita Taveta County, where Sh229.08 million was spent on domestic travel and subsistence allowances for MCAs and staff.

The audit reveals that this expenditure was unsupported by the necessary receipts or documentation, making it impossible to verify its legitimacy.

Some Sh10.83 million was paid to officers without prior approval from the Salaries and Remuneration Commission (SRC), while Sh3.05 million was paid in allowances without receipts.

“In the circumstances, the accuracy and regularity of the domestic travel and subsistence expenditure of Sh229.08 million could not be confirmed,” the report states.

Wajir County also found itself in the auditor's crosshairs, where MCAs were overpaid Sh11.19 million in mileage allowances.

This was after an analysis revealed that the mileage claims exceeded the approved limits, amounting to a total of Sh91.55 million.

The report noted, "An analysis of claims based on actual distances from the Wajir county headquarters to the respective wards, as provided by the Ministry of Transport and Infrastructure, revealed that members were overpaid by Sh11.19 million."

Furthermore, Wajir County exceeded its annual budget by Sh1.19 billion-11% of the total county revenue.

The auditor flagged a questionable procurement of advertising services worth Sh2.2 million, which lacked sufficient documentation, raising concerns about potential fraud.

"The expenditure was not backed by user requisition as the basis for initiating the procurement process, and the services were single-sourced from just one media house," the report explained.

In Isiolo, Sh4.49 million was reportedly allocated as 'responsibility allowances' to county assembly members, yet the county failed to provide essential documentation, such as attendance registers or a list of leadership positions, to substantiate these claims.

"In the circumstances, the accuracy and completeness of employee compensation amounting to Sh277.63 million could not be confirmed," the report stated.

Additionally, Sh4.42 million was spent on retreats held at a venue only 10 kilometers away, which violated SRC guidelines that do not allow daily subsistence for locations within a 50-kilometer radius.

Marsabit County was another key example of financial mismanagement. Gathungu pointed to the wasteful spending of Sh4.03 million for a report-writing workshop in Isiolo, which violated National Treasury circulars requiring such activities to occur within the same duty station if the participants are from one location.

Furthermore, Sh8.13 million was tied up in a stalled construction project for the county assembly chambers, initially budgeted at Sh344.20 million and intended for completion in August 2019.

The project’s delayed timeline raised serious questions about the efficient use of public funds.

The audit also revealed improper payments of Sh900,000 for the speaker’s rent, despite the SRC’s deadline for leasing such accommodation expiring in June 2022.

The Nyeri County Assembly also made headlines for spending Sh10 million on air tickets for MCAs and staff, with Sh9.95 million paid to a single-sourced company.

Makueni County came under fire for its approval of allowances that ranged from Sh50,000 to Sh70,000 for MCAs participating in oversight activities—far exceeding the SRC-approved rates.

The county also spent Sh10 million acquiring land for the construction of the speaker’s residence and an additional Sh19.77 million to build a perimeter wall around the property.

However, an inspection revealed a septic tank that was full and a perimeter wall with cracks.

The audit further revealed troubling ethnic imbalances in staffing, with counties such as Murang’a, Kirinyaga, and Kiambu showing an overwhelming dominance of one community in the workforce, raising concerns about fairness in recruitment.

Elgeyo Marakwet and Nandi were also scrutinized for questionable foreign trips by MCAs.

In Homa Bay, the leadership of the county assembly came under fire for disbursing Sh40.63 million without providing the necessary vouchers for audit purposes, further compounding the issues of financial mismanagement across the counties.

In Nandi, the auditor could not verify Sh10 million spent on MCAs' travel due to the lack of supporting documentation. Additionally, the county failed to justify Sh2.5 million spent on training programs.

These findings have raised alarm about the dire state of financial oversight within county assemblies.

The lack of proper documentation, overpayments, and wasteful spending continue to burden taxpayers, calling for urgent reforms in the way county governments handle public funds.