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A Senate watchdog committee has directed the Auditor General to quantify more than 700 cases facing Uasin Gishu County during the tenure of Governor Jackson Mandago who is now the area Senator.

The Senate Public Accounts Committee was shocked to learn that there are 700 pending cases against the county that could cost Sh15 billion in litigation.

 Already the County Government has gobbled up Sh103 million in solving 42 cases during the year under review.

The County failed to account for Sh2.9billion that could have been lost in the Finland and Canada educational scholarship scheme.

During the examination of audit reports for the financial year 2020-2021, Mandago’s administration failed to submit relevant documents that could have confirmed whether the Sh2.9billion was put in the County Account or not.

The Auditor-General told the committee an account existed and that there were some documentation that showed that payments were being made to the County Account.

“We knew a bank account existed. The information was not available. There were some documentation that showed that payments were being made. We could not confirm transfers. We had documents that showed that there were some activities,” said the auditor.

Finland, Canada scholarships

The committee chair Moses Kajwang’ (Homa Bay) questioned current Governor Jonathan Bii why his responses to the Finland and Canada scholarship audit query were not captured.

“Was this account having money? Was the money moving? Was it linked to the County Government of Uasin Gishu?” posed Kisii Senator Richard Onyonka.

However, County Secretary Edwin Bett denied that the account in question did not belong to the County, adding that the Finland and Canada scholarship account was a private undertaking and that it had a private account.

“You are not telling the truth. The auditor is saying that there were some documents. Do you have documents that show? Questioned Onyonka.

“There is mischief here. Did the staff of Uasin Gishu provide all the documents to the auditors to enable them to establish whether this money was channeled through County accounts or not? Where are the documents,” posed Senator Samson Cherargei (Nandi).

Kajwang’ in making his ruling directed the auditor to check the accounts at the commercial banks in Eldoret, telling the County officials that they cannot choose what to disclose and what not to disclose.

“You have the mandate to check the accounts at the Commercial banks. Someone could have changed to sanitize an illegality. You cannot decide what to disclose and what not to disclose. We are smelling some mischief,” Kajwang’ directed.

Lost savings

Already the Ethics and Anti-Corruption Commission (EACC) has investigated how hundreds of students lost their savings in the Finland and Canada scholarship scheme orchestrated during the tenure of Mandago in Uasin Gishu.

The audit report during the year under review states that 42 cases with an estimated financial impact of an amount of Sh103,210,832 were pending against the County Executive as at 30 June 2021.

However, a review of records provided for audit revealed that over 700 court cases were pending against the County Executive.

The report further reveals that the management explained that several measures have been put in place to deal with the spiraling court cases including handling the matters in-house, operationalizing the office of the County Attorney, out-of-court settlements and establishment of an independent fund to deal with the court cases.

“Pending unresolved cases may have a significant financial impact on the County Executive and can adversely affect future cash flows,” reads part of the report.

However, Bii caused laughter telling the Senators that he was not aware that Uasin Gishu County government was having some 700 pending cases at various courts.

“I was not aware that there were 700 cases. However, half of the cases have been settled. I also now have a Solicitor General,” said Bii.

Senators questioned how the County Government would operate if all the 700 cases were to go to full hearing and with a possibility that they lose the cases.

“With that kind of exposure, Eldoret cannot be a City. If the County government can spend Sh103million in only 42 cases, then how much will it spend in 700 cases? There is a possible liability of Sh15billion yet the County is only getting less than Sh10billion annually from the Division of Revenue. The county is technically bankrupt,” said Kajwang’.