The Auditor General has fingered Kitui County government for various financial irregularities worth billions of shillings, stalled projects and noncompliance with relevant laws.

Auditor General Nancy Gathungu in her latest audit report tabled in Parliament, revealed that the Julius Malombe administration had inaccuracies in cash and cash equivalents amounting to Sh670 million, which could not be confirmed.

Outstanding rates

In her latest report for the financial year ending June 30, 2024, the Auditor shows that the Kitui County government did not collect outstanding property rates totaling to Sh 1.09 billion owed to the county.

In addition, a comparison between the financial statement and the Integrated Financial Management Information System (IFMIS) trial balance revealed a variance of Sh 621.5 million.

The auditor shows that transfer to other government entities in the financial statement was Sh 1.04 billion while in the IFMIS balance it showed Sh 1.4 billion leaving a variance of Sh 356.2 million.

“In the circumstances, the accuracy and completeness of the amounts as reflected in the financial statements could not be confirmed,” reads the report.

Bank statements

According to the report, a review of bank reconciliation statements revealed that reconciling items, which included unpresented cheques and receipts in cashbook, not recorded in bank statements totaling Sh 749.5 million and Sh744.4 million respectively.

The auditor revealed that the two were transactions for the period between July 1, 2024 and July 12, 2024, which were outside the financial year.

“In the circumstances, the accuracy and completeness of cash and cash equivalents balance of Sh670 million could not be confirmed,” reads the report.

A review of the Integrated Payroll and Personnel Database (IPPD) payroll revealed that 1909 employees earned a net salary of less than one third of the basic salary which is contrary to section 19 (3) of the Employment Act 2007.

The law requires that deductions made by an employer from the wages of his employee at any one time shall not exceed two thirds of such wages. In addition, section C.1 (33) of the Public Service Commission (PSC)-Human Resource Policies and Procedures Manual for the Public Service stipulated that public officers should not over-commit their salaries beyond two thirds of their basic pay.
Governor Malombe is also fingered for various stalled projects and contractors abandoned the sites especially in the department of Health amounting to Sh404.5million.

The projects include a storied maternity ward at Kitui County Referral Hospital, X-Ray building at Kauwi Hospital, Oxygen plant machine at the Kitui County Referral Hospital.

Contract award

For instance, the management awarded a contract for the completion of an X-Ray building at Kauwi Hospital at a cost of Sh2.2million, a construction that was to be completed within 120 days last year in February.

However, project verification carried out on September 17, 2024 revealed that the X-ray building was complete but not in use with the management explaining that, it was waiting for the installation of the X-ray machine.

“The hospital has an X-ray machine delivered in the 2017-18 at a cost of Sh70million but the same is yet to be installed and commissioned,” reads part of the audit report.

Further the management awarded contract for the supply, installation and commissioning of oxygen plant machine for the Kitui Referral Hospital at a contract sum of Sh14.5million.

However, physical verification of the project carried out on September 11, 2024 revealed that the plant was yet to be installed and commissioned. In addition, it was stored in an unsecured storage space outside, exposing it to risk of physical deterioration due to adverse weather conditions.

The management attributed the delay in installation and commissioning of the oxygen plant to disputes between the County Executive and the supplier since the County had not paid for the delivery.

“However, the dispute has taken too long to be resolved and the efforts being undertaken by the management could not be confirmed. In the circumstance, the public may not get value for money from the expenditure on the uncompleted projects,” reads the report.

The audit report also revealed that construction of Livestock Office Block, construction of Tyaa Sumpwell and Civil works at Tyaa River and construction of a Snake Pit at Mutomo Reptile Park have not been completed.

The documents reviewed and audit inspections conducted revealed that the three projects were implemented but not as per the scope/contract agreements.