Auditor General Nancy Gathungu has unearthed massive irregularities in how political parties have been utilising millions of shillings given to them under the political party’s fund.
A scan through about 25 small and big parties raises questions regarding financial improprieties including, unsupported expenses, failure to establish party offices in the required 25 counties as well as unsupported use of goods and services.
The parties in question include Amani National Congress (ANC) associated with Prime Cabinet Secretary Musalia Mudavadi, Wiper party owned by Kalonzo Musyoka, NARC Kenya associated with Martha Karua, Kanu headed by Gideon Moi, Safina Party headed by Businessman Jimmi Wanjigi, Tujibebe Party headed by former Kiambu Governor William Kabogo, Democratic Party of Kenya, Kadu Asili headed by Emmanuel Nzai and Chama Cha Uzalendo headed by Maur Bwanamaka.
Others are Mabadiliko Party of Kenya, National Agenda Party of Kenya, National Reconstruction Party, Peoples Trust Party, United Party of Independent Alliance (UPIA), Chama Cha Kazi, Federal Party of Kenya, Grand Team Development Party, Justice and Freedom Party, Kenya Union Party, Peoples Democratic Party, Ubuntu Peoples Forum and UDP.
Understatement of funds
With respect to the Wiper party, the report fingered the party for understatement of political party funds, unsupported revenue from non-exchange transactions, unsupported general expenses, lack of segregation of duties, as well as failure to establish adequate party offices.
On political party fund, the report raises concerns that the party was unable to explain Sh7.2 million out of the Sh343.3 million received from the Political parties’ fund while on general expenses the report raises concerns over the party’s failure to account for Sh15.8 million received by the party.
On establishment of party headquarters, the report says that although the auditors visited 38 counties, it was revealed that the party has 14 offices which excludes 9 that were not visited.
Reads the report: “This is contrary to section 7 (f) (111) of the Political Parties Act 2011 which states that a political party qualifies to be fully registered if it has submitted to the registrar the location and addresses of the branch offices of the political party, which shall be more than half of the counties.
In the circumstances, the party management was in breach of the law.”
Unsupported expenditure
ANC on the other hand has unsupported expenditures amounting to Sh1.23 million that were not in the procurement plan as well as did not have a voucher number and the payee.
Reads the report: “In the circumstances, the accuracy and completeness of use of goods and services and party advocacy and meetings could not be confirmed.”
The party also has unsupported trade and other payables amounting to Sh3.6 million, unsupported cash and cash equivalent of Sh5.5 million as well as questions relating to late submission of financial statements, procurement plan and failure to establish adequate party offices as the party has seven offices in seven counties including its headquarters and six branch offices contrary to the political party’s act that branch offices should be in more than half of the counties.
With regards to Narc Kenya, the report shows that the party has inaccuracies in the financial statements amounting to Sh8.3 million, failed to adhere to statutory expenditure limit as the party spent Sh9.4 million against the operational grant of Sh3.77 million representing 249 per cent of the funds received from the Political Parties fund which is contrary to the act that expenses of the party should not be more than 30 per cent of the monies allocated of the political parties fund.
The party is also on the spot over irregular procurement of election materials after documents showed that a supplier was paid Sh330,000 and Sh300,000 for the supply of printed T-shirts and caps.
In addition, an amount of Sh285,000 was paid to a tour service for the hire of a utility car for 30 days yet there was no evidence that the procurements were reviewed by an evaluation committee and supported by professional opinions.
Reads the report: “This was contrary to section 46 (1) of the Public Procurement and Asset Disposal Act 2015 which requires accounting officers to ensure that an ad-hoc evaluation committee is appointed within the member’s staff with the relevant expertise. In the circumstances, management was in breach of the law.”
Further, the report also raises concerns that the party has only three offices out of 38 offices visited by the auditors.
