Auditor General headed for clash with MPs over CDF misuse report

Auditor-General Edward Ouko

A storm is looming in parliament over a CDF report by the office of the Auditor General that highly implicate the members of parliament.

This is according to recent audit reports that majority leader Aden Duale has tabled in the National Assembly.

The Auditor-General Edward Ouko has raised the red flag over blatant misuse of billions of shillings allocated to the National Government-Constituency Development Fund (NG-CDF).

About Sh5 billion is allocated to the NG-CDF in 290 constituencies annually but the audit as at the year ending June 30, 2017 has revealed that many constituencies have no documentation to back up huge expenses. Mr Ouko termed this worrying.

MPs were previously in charge of the fund but the law was amended with the new Constitution that inaugurated NG-CDF management committees. However, they oversee use of the funds and have a say on who sits in management committees.

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The billions were largely used for bursaries for students in primary and secondary schools, and other institutions of learning, as well as construction of classrooms and murram roads. Some shares were for finance functions that are devolved. 

For instance, Juja Constituency was on the spot over unsupported bursary disbursements of Sh27.6 million.

The expenditure was not supported by acknowledgement letters or receipts from institutions which received the bursary awards. documents which would have confirmed whether the money was received and accounted for.

The indication, therefore, was that the money may not have been used for the intended purpose.

The audit of Samburu North Constituency showed that financial statements reflected disbursement of bursaries amounting to Sh48.2million against a budget of Sh58.2million. However, no schedule was produced to support the expenditure.

“The legality or regularity of the award of bursaries could not be ascertained in the absence of a set criteria,” Mr Ouko says in the report.

In Mwala constituency, projects worth Sh271.7 million stalled or remained unimplemented at least in the period under review.

There were also inaccuracies in the financial statements such that despite a bank balance of Sh13.2 million as at June 30, 2017, financial statements showed one of Sh9.9 million.

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