Senate corners Kericho over pending bills cash
Kericho Governor Eric Mutai before the National Assembly Committee on Education at the County Hall Nairobi on Tuesday, November 21, 2023.
Kericho Governor Erick Mutai is at pains to explain how the county government spent Sh425.6 million that had been approved for payment of pending bills.
The devolved unit is also on the spot for spending Sh3.7 million on allowances for officers who attended retreats in Kisumu, Mombasa and one in Nairobi to discuss the collapse of a building in Kericho.
Appearing before the Senate County Public Accounts Committee, Dr Mutai was hard-pressed to explain why only Sh341.5 million was paid to suppliers and contractors, despite the county assembly approving Sh425.6 million.
Auditor-General Nancy Gathungu questioned the remaining Sh84.1 million and the schedule on how the Sh341.5 million was spent during the financial year ending June 30, 2023.
Ms Gathungu said the Kericho County Government did not provide a list of suppliers and contractors it paid, invoices and completion certificates to show when the projects started, what had been paid and what is remaining.
“This was a specific budget to clear pending bills. How did the county government reallocate the budget? The documents we saw cannot prove where the pending bills originated from,” Ms Gathungu said.
Sh84.1 million
“Once a budget is approved, it must be followed. Where did the county government get the authority to reallocate the money?” She asked.
Governor Mutai told the committee chaired by Homa Bay Senator Moses Kajwang’ that the money was diverted to other projects.
Mr Kajwang’ pressed the governor to specify the projects which were allocated the Sh84.1 million, and also to explain why the county executive went against a budget approved by the county assembly.
During the period under review by the Auditor-General, the Kericho County Government had Sh526.2 million eligible pending bills.
“If the county government asked for Sh425.6 million but only paid Sh341.5 million, then it means the rest of the money was either irregularly reallocated or stolen. Which one should we go with?” Asked Mr Kajwang’.
Nyandarua Senator John Methu asked: “Why pay only Sh341.5 million yet there is an approved budget of Sh425.6 million?”
For his part, Kisii Senator Richard Onyonka said the Kericho case is a classic example of how county governments approve budgets but redirect the money and make payments that benefit their associates.
“This is what most counties do. They approve higher amounts but pay less with voided transactions going to other shady payments,” he said.
The committee directed the governor to submit a report of its eligible pending bills, and how much was paid to which suppliers and contractors within 14 days after the governor asked to be given more time to do reconciliation.
On the use of Sh3.7 million to pay allowances of officials attending retreats, Senator Kajwang’ said the county government was being wasteful.
Recover the money
He called on the Ethics and Anti-Corruption Commission (EACC) to swing into action, identify the culpable individuals, and recover the money.
“This is a very ridiculous expenditure. How do you go to Nairobi to discuss a collapsed building in Kericho? We recommend a surcharge for the people who benefitted from the money,” he said.
Governor Mutai admitted that it was wrong for such an expenditure to be approved in 2021, saying he has stopped county officials from holding retreats and workshops beyond Kisumu.
The audit queries did not end there, as the county government was further asked to explain the whereabouts of Sh47 million staff National Health Insurance Fund (NHIF) contributions.
The Auditor-General said that the correct figure was Sh54 million, which cannot be traced despite the devolved unit saying that the money had been sent to the NHIF.
“This is a classic case of how counties often deduct employees’ contributions but do not remit the same,” said Senator Onyonka.
However, Governor Mutai said they are not holding onto the money and insisted that it had been remitted to NHIF.
