81 Billion Down the Drain?12 Cash Minting Counties Exposed!!

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Twelve counties were unable to account for Sh81 billion they received from the National Treasury during the 2016/17 financial year, a report by Auditor-General Edward Ouko has revealed.

Mr Ouko did not give an opinion on the financial activities of the 12 counties during that year, meaning there was little or no documents backing the devolved function’s expenditures. This is technically known as disclaimer opinion.

According to the report, more than half of the counties were in a bad financial state in the year that ended June 30, a month to the August general election where many incumbent governors lost their seats.

The report exposes huge variances between financial statements and the Integrated Financial Management System reports, resulting in the auditor expressing an adverse and disclaimer opinion.

The disclaimer opinion issued on financial statements of the 12 counties could be a signal of either the bookkeeping nightmare that the devolved governments find themselves in or misappropriation of taxpayers’ money.

The auditor is usually unable to offer an opinion when he encounters numerous errors and where information is not made available to him, making it difficult for him to finish the audit.

The counties are Nairobi, Nandi, Tana River, Vihiga, West Pokot, Bomet and Homa Bay. Others are Kericho, Kitui, Lamu, Machakos and Migori.

 

At the same time, 12 other counties were issued with an adverse opinion indicating massive inaccuracies in the Sh73 billion they received in the same fiscal year.

Mr Ouko issues an adverse opinion, which is the worst report an institution can get, when he finds so many anomalies that he lacks confidence in the financial health of an institution.

Some of the counties that were issued with an adverse opinion are Nyamira, Samburu, Kirinyaga, Murang’a, Tharaka Nithi, Kwale and Kisumu. Others are Siaya, Turkana, Garissa, Isiolo and Embu.

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