Auditor General exposes theft of billion at Machakos county – Weekly Citizen

Ethics and Anti-Corruption Commission detectives are heavily relying on the 2017-2018 Auditor General’s audit report on Machakos county to nail Governor Mutua confidants whom the report has exposed as having been behind the loss of billions of shillings in shady deals.
According to the report, the county government failed to account for over Sh1billion in the last financial year. The money, according to the report was either misappropriated or embezzled with now anti-graft sleuths narrowing down on key architects, a move that has sent panic in Governor Mutua’s office.
The detectives are compiling a high level case against top Mutua allies including his chief-of-staff Mwengi Mutuse. Also not spared are top officials at the finance department including the Jacinta Masila who is in charge of the finances in the county.
Masila, according to a senior accountant who sought anonymity due to sensitivity of the matter has been doing dirty errands on instructions from Mwengi mostly flouting financial regulations. In their schemes, it is claimed that they have sidelined and ignored advice from senior accountants, a majority who remain in an acting capacity.
It is said all this happens at the back of the governor who has entrusted both to run the county. The deputy governor Francis Maliti who although doubles as the finance county executive has allegedly been kept in the dark. Disgruntled members of staff in the accounts department who have been bullied to pay illegal payments have threatened to expose ghost companies associated with the beleagured Mwengi which were paid millions of shillings.

Governor Mutua

Also under investigations are county executives and chief officers whose dockets the Auditor General did not give a clean bill of health.
According to the report, the department of youth, education and social welfare could not account for Sh52,248,016 meant for needy students in the county. The report pointed that there were no financial statements relating to the funds provided by the time of the audit. The CEC member is Ruth Mutua while chief officer is Carlos Kioko.
The report also indicted the county for using manual ledger as opposed to Ifmis ledger as required by the county finance Act. The report further cited the failure in reconciliation had led to loss Sh1.3 billion in the financial year. Ifmis ledger, according to the report had a total budget of Sh8.7 billion while the county had recorded Sh10.7billion. The statements of assets and liabilities reflected a balance of Sh106 million. However, the county executive failed to avail cashbook and bank reconciliations for the same.

Alfred Mutua and Francis Maliti

The county had an outstanding imprest of Sh51million as at June 30, 2018. According to the report the imprests had not been recovered contrary to the authorities that govern imprests. The executive also against the law failed to observe budget ceiling in compensating employees in 2017-2018 financial year. According to the auditor report, the executive made a budget of totaling to 46pc as opposed to 36pc in contravention of finance management act of 2012.
At the department of tourism, sports and culture, a payment of Sh13 million was paid to Football Kenya Federation headed by Nick Mwendwa. The money was paid in support of Cecafa games which were hosted by the county from December 3-17 2018. Cecafa secretary general is Nicholas Musonye. There was no budget for the same and the payment were not authorised by the cabinet according to the report. The payment was allegedly paid after the sporting event but FKF had not acknowledged receiving the cash. Detectives have taken statements from FKF officials who have denied getting the cash.
The Auditor’s Report has also raised a red flag on the department of transport, roads and public works headed by Thomas Aluanga as the CEC. The executive allocated Sh205, 812,124 million for upgrading of Kivandini-Masinga Road. The project was supposed to be completed within six months but by the time of the audit, the contractor had abandoned the site despite having been paid mobilisation fee. The department also engaged a local contractor to build a microwave and shredder house for machines donated by the government to ensure they are not exposed to bad weather.
According to the report, the tender was not advertised although Sh10 million was paid to the contractor who abandoned the site. The same department under supervision of Aluanga was responsible for installing substandard Tartan Track at Machakos stadium at a cost of Sh37 million. Sh24milion allocated for construction of the departments block is shrouded in mystery. The contractor was paid Sh11 million but no work has so far started. The same department is under investigations