A court has dismissed a damaging report compiled by the Nairobi County Assembly’s Select Committee concerning misappropriated funds collected by the Alcoholic Drinks Control and Licensing Board. Judge Jairus Ngaah of the Employment and Labour Relations Court rejected the committee’s findings, which implicated senior officials of Nairobi City County in significant financial losses.
The report identified several key figures, including Dr. Jairus Mususmba, who served as County Chief Officer for Trade, Tourism, and Cooperatives from May 2019 to March 2020 and later as acting county secretary. Allan Igambi, County Executive Committee Member for the same department from 2018 to 2022, and Mohamed Sahal, Chief Officer from March 2020 to June 2022, were also named. Additionally, Hesbon Mole, the director of the Alcoholics Control and Licensing Board, and his deputy, Julius Matekwa, were implicated.
The Select Committee recommended prosecution of these officials for failing to submit financial statements over a five- to seven-year period, despite none of them holding their positions during that time. The committee noted that the Alcoholic Drinks Control and Licensing Fund collected Ksh. 427,267,499.30 and Ksh. 515,876,790.40 in the fiscal years 2019/2020 and 2018/2019, respectively. However, supporting documentation such as bank deposits, receipts, and ledgers was missing, and the revenue did not align with the liquor license applicants’ schedule.
The officials reportedly neglected to provide crucial financial documents like cash books and payment vouchers, even after multiple requests. For the financial year ending June 30, 2020, total receipts were reported at Ksh. 427,267,499, with payments of Ksh. 277,304,402, yet proper documentation for auditing was absent.
As a result of their actions, the officials were held accountable for unauthorized payments amounting to Ksh. 77,684,054.00 and unsupported goods and services totalling Ksh. 28,147,580.60, having procured services without appropriate authorization, in violation of the Public Finance Management Act, 2012.
City Hall officials argued that the Select Committee’s reports from September 28, 2022, and June 22, 2023, were unconstitutional and invalid. In his ruling, Judge Ngaah issued an order of certiorari to quash the Select Committee’s report dated June 22, 2023, related to the Auditor General’s findings on the Alcoholic Drinks Control and Licensing Board for the fiscal year ending June 30, 2020.
