The Nairobi County Assembly has started investigations into the suspected misappropriation of funds running into hundreds of millions by the Nairobi City County Alcoholic Drinks Control and Licensing Board.

This comes even as it emerged the county missed its revenue target for the first quarter of the current financial year by Sh2.9 billion.

Appearing before a County Assembly committee yesterday, former liquor licensing boss director Hesbon Angwena (pictured) dismissed claims that money had been misappropriated.

“We used money as per the law. No coin was misappropriated,” he said.

A report that was tabled before the Public Accounts Committee shows that unsupported receipts and payments by the board date back to the 2014-15 financial year.

“In the circumstances, the accuracy, completeness and validity of the receipts and payments of Sh427,267,499 and Sh277,304,402 respectively could not be confirmed,” reads the report.

The report supports an earlier report by the Auditor General that had flagged non-compliance by the board in submitting financial statements.

The Auditor General pointed out that the board had not submitted its financials from the 2014/15 Fiscal year to 2018-19.

The committee’s deputy chair Robert Alai (Kilimani) said the committee will engage the County Attorney on why there are gaps in the law to allow spending without cheques and balances.

“From the estimated Sh500 million collected, the board spent around Sh300 million without receipts and balances. They produced block statements without any itemised spending,” Alai said.

The board failed to supply documents including receipt books, cash books, payment vouchers, ledgers and audit schedules.

The data contained in the Quarter Revenue and Expenditure report for 2021-22 tabled in the County Assembly shows that City Hall collected Sh151.8 million from rates, single business permits (Sh65.4 million) and parking fees (Sh373.9 million).