A day after Auditor-General Nancy Gathungu (pictured) unearthed massive irregularities in the issuing of bursaries by various constituencies, a detailed analysis of the National Government Constituencies Development Fund (NGCDF) report on some constituencies reveals how billions in public funds intended to spur development are plundered.

The report for the year ending June 2023 shows that there was no value for money in some of the projects as they are either incomplete, have stalled or had poor workmanship.

The report cites the constituencies for initiating projects, such as the construction of schools, and paying for low-quality work.

The constituencies in question include Rarieda, headed by Otiende Amolo, Nakuru Town East (David Gikaria), Nyeri Town (Duncan Maina), Yatta (Robert Ngui), Tetu (Geofrey Wandeto), Othaya (Michael Wambugu), Uriri (Mark Nyamita), Kajiado North (Onesmus Ngogoyo) and Kasarani (Ronald Karauri).

Stalled construction

In Nakuru Town East, the report raises concerns about stalled construction of classrooms, irregular expenditure on a strategic plan and poor implementation of projects.

On stalled construction of classrooms, the report notes that expenditure amounting to Sh9 million on building a three-storey building comprising nine classrooms could not be confirmed, as cashbooks, bank statements, procurement records and expenditure returns for the project were not provided for audit.

The report also says that a physical inspection of the project in March 2024 revealed that it had stalled at the ground-floor level.

Reads the report: “In the circumstances, the value for money on the expenditure of Sh9,000,000 incurred could not be confirmed.”

Regarding spending on strategic plans, the report says a review of records revealed that a consultant was contracted, using a request for quotation method of procurement, to prepare a five-year plan for Sh3.5 million, way above the Sh3 million ceiling for consultancy services prescribed in law.

“In the circumstances, Management was in breach of the law and value for money on expenditure incurred on the preparation of the strategic plan could not be confirmed,” the report says.

Delayed implementation

On the status of project implementation, the report notes that although 11 projects with total allocations of Sh21.4 million were physically inspected in March 2024, projects worth Sh14 million had anomalies.

The anomalies included one primary school project that had stalled, two that were not done per the specifications in the bill of quantities, and another that had poor workmanship

Reads the report: “In the circumstances, value for money on the projects amounting to Sh14,017,500 could not be confirmed.”

In Nyeri Town constituency, the report raises concerns about delays in implementing projects and irregular house allowances projects.

On projects, the report notes that a Project Implementation Status (PlS) report provided for audit showed that the NGCDF planned to implement 61 projects with a budget of Sh93.8 million in the year to 30 June 2023, but only three were completed for Sh6.2 million, while 58 worth Sh 87.6 million were not started.

“In the circumstances, the non-implementation of projects as planned denied the public benefits associated with completed projects,” the report says.

Unsupported payments

In Yatta, the report cited unsupported payments for projects worth millions of shillings.

The funds in question include Sh4.7 million disbursed to two projects at security institutions for the construction of four-roomed offices. The projects included the Katangi chief’s office and the Kiamani assistant chief’s office, both built for Sh4 million.

The report notes that supporting documents such as bills of quantities, professional opinions, interim payment certificates, contract agreements, project management committee minutes approving payments, and certificates of practical completion were not provided for audit.

Reads the report: “In the circumstances, the accuracy and completeness of the expenditure amounting to Sh4,730,000 could not be confirmed.”

The other funds in question comprise Sh13.4 million and Sh13.5 million transferred to primary schools and secondary schools, respectively, for the implementation of various projects across Yatta.

No records

The report notes that a review of project management committee records for nine projects relating to the renovation of classrooms, construction of classrooms to completion, and construction and equipping of science labs revealed that payments totalling Sh14.5 million were not supported by interim payment certificates, invoices, and site inspection and acceptance reports as required.

The report also reveals that the Yatta NGCDF board funded two projects at Iviani and Ngangani primary schools – both relating to the renovation of classrooms for Sh900,000 each – but records for the projects amounting to Sh1.8 million were not provided for audit.

“In the circumstances, the accuracy and completeness of the expenditure amount of Sh14,250,000 could not be confirmed,” the report says.

In Rarieda, the report questioned expenditures amounting to millions of shillings spent on domestic travel and subsistence, acquisition of land, project management committees and various projects.

On land, the report notes that though Sh2.3 million was transferred to Rarieda Science Teachers College, a review of transfer records revealed that the project management committee had received the funds for the purchase of 15 acres but the title deed for the land was not provided for audit.

Emergency funds

Furthermore, the bank statement for the project management committee account as of 30 June 2023 was not provided for audit.

Says the report: “In the circumstances, the accuracy and completeness of the transfers to other government units amounting to Sh2,300,000 could not be confirmed.”

On projects, the report says the constituency breached the law by including Sh3 million to several schools as bursaries though the expenditure was not an emergency in nature and unforeseen.

The report also notes that there was no evidence provided to confirm that the use of emergency funds was reported to the NGCDF board within 30 days as required by Regulation 2O(2) of the National Government Constituencies Development Fund Regulations, 2016.

The report further cites poor implementation of security projects amounting to Sh2.1 million.

Cash books

In the Tetu constituency, the report listed unsupported project management committee balances totalling Sh58,960.

Cash books, bank reconciliation statements and certificates of bank balances for the individual project management committee (PMC) accounts were not provided for audit.

“In the circumstances, the accuracy and completeness of the PMC bank balance of Sh58,960 could not be confirmed,” the report says.

In Othaya, the report cited incomplete projects, zero implementation of projects though funds were available for them, lack of procurement plans for the projects despite millions being pumped into them.

For instance, the report mentions that Sh10.8 million was transferred to a total of six primary schools, secondary schools and tertiary institutions for the construction of classrooms and ICT hubs.

But the approved work and procurement plans, the report says, were not prepared, which was contrary to Regulation 25(1) of the National Government Constituencies Development Fund, Regulations, 2016.

Reads the report: “In the circumstances, management was in breach of the law.”

Incomplete projects

The report also says that a review of the project implementation status report as of June 30 last year revealed that 87 projects with funding allocations totalling Sh7.2 million were approved but several unsatisfactory issues were noted.

Among them were incomplete projects where, despite Sh1.5 million being set aside for them, the contractor was not on site, and projects were being funded but not implemented.

However, the report says implementation of the projects had not started though funds had been disbursed.

Reads the report: “In the circumstances, the public may not have realised the value for money spent on these projects.”

Four projects with funding allocations of Sh 5.1 million were sampled for physical verification during March 2024, but their implementation had not started though funds had been disbursed.

In addition, the Witima and Mahiga ICT hubs, each allocated Sh900,000, had not received funding in their respective project management committee accounts due to delayed opening of accounts.

Reads the report: “In the circumstances, the public may not have realised value for money spent on these projects.”

Poor workmanship

In Uriri, the report cites poor construction of classrooms, including at Kolwal Mixed and Kambogo primary schools.

Regarding Kolwal, the report says that although physical verification conducted in March 2023 revealed that the project had been completed, the walls showed deep cracks, suggesting poor workmanship.

And at Kambogo, the report says physical verification conducted in March 2023 revealed that the project had been completed and was in use, but the floor showed cracks and part of it had disintegrated, indicating poor workmanship.

The report also raised questions over rehabilitation and spot improvement of the Kalii Primary School access road, reallocation of special schools bursary funds of Sh5 million for projects, and failure to implement budgeted projects.