Governor at pains to explain Sh426m county expenditure

A Senate Committee has put on the spot Kericho county government for spending Ksh341.5 million against an approved budget of Ksh425.6 million on eligible pending bills.

The Eric Mutai led county government was also fingered for spending Ksh3.7million on a trip to Nairobi to discuss a collapsed building in Kericho.

Mutai was on Tuesday at pains to explain how his administration spent Sh341.5million to pay suppliers and contractors despite the county assembly having approved Ksh425.6 million.

Senate County Public Accounts Committee chaired by Homa Bay lawmaker Moses Kajwang’ pressed the governor why the county executive went against an approved budget by the County Assembly.

This is after Auditor-General Nancy Gathungu questioned the whereabouts of the remaining Sh84.1million as well as schedule on how the Sh341.5million was spent during the financial year ending June 30, 2023.

According to the auditor, the county government did not provide a list of suppliers and contractors paid, the invoices and completion certificates to show when the projects started, what had been paid and what is remaining.

Pending bills

“This was a specific budget to clear the pending bills. How did the county government reallocate the budget? The documents we saw cannot prove where the pending bills originated from? Once a budget is approved, it must be followed. Where did the county government get the authority to re-allocate the budget,” posed the Auditor.

However, Governor Mutai had told the committee that his administration had re-channeled the budget to other ongoing projects in the devolved unit.

“If the county government asked for Sh425.6 million but only paid Sh341.5million, then it means the rest of the money was either irregularly re-allocated or stolen. Which one should we go with?” posed Kajwang’.

Richard Onyonka (Kisii), described the happening as a classic example of how counties approve budgets only to void them to other payments that benefit their associates.

“Counties approve higher amounts but pay less with voided transactions going to other shady payments,” said Onyonka.

John Methu (Nyandarua) on his part questioned the Governor why his administration only paid Sh341.5million yet there was an approved budget of Sh425.6million.

Instead, the committee directed the governor to submit a report of its eligible pending bills and how much was paid and to which suppliers and contractors within 14 days.

Irregular expenditure

The directive came after the Kericho County Chief asked the committee to give them more time to carry out reconciliation.

The county government was also on the spot over irregular expenditure on workshops and retreats with Sh3.7million being paid as allowances for officers on retreats in Kisumu, Nairobi and Mombasa.

Mutai’s administration spent funds on a workshop in Nairobi organized to discuss the collapse of a building in Kericho.

The revelation irked the Senators with Kajwang’ describing the expenditure as wasteful and ridiculous.

Kajwang’ instead called on the Ethics and Anti-Corruption Commission (EACC) to pitch tent into the County, identify the culpable individuals and recover the money.

“How do you go to Nairobi to discuss a collapsed building in Kericho? This is a very ridiculous expenditure. We recommend a surcharge for the people who benefited from the money,” he said.

Governor Mutai admitted it was wrong for such an expenditure to be approved in 2021, saying he has stopped such retreats with no meeting allowed past Kisumu.

The audit report for the year ending June 30, 2023 further showed that the county government spent some Sh54 million, which cannot be traced despite the devolved unit saying the money, has been sent to the National Health Insurance Fund (NHIF).

“This is a classic case of how counties often do deduct employees’ contributions but do not remit the same,” said Senator Onyonka. In his response, Governor Mutai said they are not holding onto the money insisting the same has been remitted to NHIF.