The Auditor General has unearthed how the Siaya government failed to complete various projects and paid millions of shillings to employees outside the Integrated Payroll and Personnel Database (IPPD).

Auditor General Nancy Gathungu, in her latest report for the financial year ending June 30, 2024, revealed that the Governor James Orengo-led administration irregularly escalated the stadium’s project cost from Sh394.6 million to Sh488.7 million, resulting in a contract variation price of Sh94 million.

Although the County Executive signed a contract in 2018 and revised it in 2019, there was no evidence of recommendation by an Evaluation Committee for the variations contrary to section 139 (1) and (2) of the Public Procurement and Asset Disposal Act.

Further, the project status report provided for audit showed that the project had nine extensions as of August 30, 2024, and that there was no documentation. The report shows statements of receipts and payments reflect Sh2.8 billion in respect of compensation of employees.

Community health workers

However, a review of the payroll records revealed that the County Executive engaged the services of 2,128 community health workers and spent Sh76.6million on wages in the year. Each of the health workers was paid Sh3,000 per month.

However, the records on how the workers were recruited were not provided for audit.

Further, a review of the Integrated Payroll and Personnel Database (IPPD) records revealed that 192 staff were paid Sh3.1 million as special allowances.

Although management explained that some of the staff members were employed as revenue collectors at a monthly salary of Sh14,675 for a contract period of three years, no documentary evidence was presented to show the recruitment process and the agreed salary.

In addition, the Governor James Orengo-led administration made salary payments amounting to Sh14.5 million to 240 staff in the month of June outside the IPPD through vouchers.

Unremitted gratuity

The management attributed the payments to funeral expenses, baggage allowances and unremitted gratuity.

“In the circumstances, the existence, completeness and accuracy of the compensation of employees amounting to Sh2.8 billion could not be confirmed,” reads part of the report.

The report further shows that statements of receipts and payments reflect Sh1.4 billion relating to the use of goods and services. Included in the expenditure is Sh348.4million in respect of domestic travel and subsistence which includes Sh51.7 million paid to 19 staff.

A review of the payments revealed each member was paid Sh2 million which was indicative of having worked out of their work for a period exceeding 120 days in the year. According to the report, the cost appears excessive as most of the County Executive work is undertaken within the County.

“In the circumstances, the occurrence, completeness and accuracy of the domestic travel and subsistence expenditure of Sh51.7 million could not be confirmed,” reads part of the report.

Included in the use of goods and services is Sh310.3 million relating to other operating expenses, which further includes legal fees of Sh34.6 million.

A review of the legal fees revealed that an amount of Sh26 million was paid to a firm of advocates for an out-of-court settlement.

However, details of the case and how the amount they arrived at were not provided for audit.

Further, an amount of Sh4 million was paid to an advocate in a civil case between the County Public Service Board and former employees. The amount paid was not supported by any evidence of court attendance and individual itemized billing to inform charges shown in the fee notes of the Advocates Remuneration Order 2014.

In addition, the County Executive had pending bills relating to decretal fees totaling Sh33.1 million.

“In the circumstance, the completeness, occurrence and accuracy of legal fees amounting to Sh34.5 million could not be confirmed,” read part of the report.