Auditor General Edward Ouko has raised a red flag over financial flaws in Governor Salim Mvurya’s administration in Kwale County’s audit for the financial year 2017-18
Ouko questions the use of Sh3 billion, casting a pale shadow on residents’ hopes of reaping from benefits of devolution.
The auditor flags suspected loss of Sh40 million in variances arising from declared financial statements and that captured in IFMIS.
Also in focus is Sh18 million paid as legal fees yet no audit evidence was made available to confirm how the legal firms were evaluated and identified.
Mvurya’s administration also spent an unsupported Sh6.8 million in printing and advertising and Sh2.2 million in training.
Ouko also queries the accuracy of the county’s Sh2.4 billion pending bills with no evidence in the form of contracts, invoices and local purchase orders.
“Further, the pending bills of Sh2.3 billion compared with bank balances of Sh2.29 billion reflects an excess vote of Sh12.5 million which is beyond the limit authorised in the AIE,” the report states.
The audit further spotlights inconsistencies in revenue collection from various streams, with some areas reporting zero earnings while others show a downward trend.
For instance, the county reported zero collections in respect of fines yet had reported Sh11 million in 2015/16.
Kwale collected Sh4.8 million in 2016-17 for administrative fees but reported zero this year and in 2015-16. Market and vehicle parking fees, as well as sale of tender documents, were also reported as zero yet the same streams had earned revenue before.
“The management has not explained the consistencies. The revenue collection dismally increased by Sh5.2 million, an indication of inefficient revenue systems,” Ouko said.
Ouko says weaknesses in the county’s project management are likely to cost taxpayers or fail to earn them value for the Sh564 million dedicated to development projects.
In one project, a contractor was wrongfully paid Sh4.7 million to upgrade a 10km road.
“A physical inspection revealed that the payment was for 10km but actual work done was 9.1km, resulting in over-payment for 0.9km,” the audit says.
Mvurya’s administration is also on the spot over the failure to absorb Sh2.3 billion of its approved budget, an indication that activities and projects in the annual work plan were not implemented.
“Further, the county assembly approval of an over-expenditure of Sh541.7 million was not made available for audit,” the auditor says.
Ouko also found out that the county government of Kwale had not established an audit committee as required by law.