The Auditor General has flagged Migori County Executive for unsupported expenditure on wages, legal fees, and failure to comply with various regulations. In her latest report for the financial year ending 30th June 2024, Auditor General Nancy Gathungu revealed that the Ochillo Ayacko-led county government could not provide sufficient documentation to support employee wage expenditures.
The report indicates that the financial statements reflected compensation for employees amounting to KSh 3.2 billion, which included KSh 141.2 million in basic wages for temporary employees. However, the required appointment letters for these temporary employees were not provided for audit purposes.
“As a result, the existence, accuracy, and completeness of the basic wages for temporary employees amounting to KSh 141.2 million could not be confirmed,” the report states.
The report, which was presented in the Senate, also highlights that the county had pending accounts payables totalling KSh 2.4 billion. Of this, only KSh 722 million had been paid, leaving a balance of KSh 1.76 billion, in violation of the Public Finance Management regulations for county governments. The regulations specify that debt service payments must be a priority charge on the County Revenue Fund to prevent default on debt obligations.
“Failure to settle bills within the year they relate to distorts financial statements and negatively impacts budget provisions for future years. In this case, management breached the law,” the report notes.
Further scrutiny reveals that KSh 592.7 million was transferred to other government entities, including KSh 120 million for the Migori County Ward Development Fund for bursaries. Additionally, KSh 292.4 million was allocated for other grants and transfers, including KSh 23.1 million for scholarships under the Inua Elimu programme. However, no policies or regulations were provided to confirm how beneficiaries for bursaries and scholarships were selected.
“Given these circumstances, the value for money in awarding bursaries and scholarships amounting to KSh 143.1 million could not be confirmed,” the report states.
The Auditor General’s report also points to unexplained contract variations and delays in project completion. These include delays in the supply, installation, and commissioning of cold rooms at the Fish Collection Centre, as well as incomplete market sheds.
In one notable example, the county entered into a contract for the rehabilitation of the Kaknene dam in God Jope Ward, with a project sum of KSh 6.9 million under the Financing Locally-Led Climate Action (FLLoCA) programme. However, no payments had been made to the contractor by the end of the review period. A physical inspection in September 2024 revealed that the project was incomplete despite the contract period expiring.
The report also outlines several unfinished infrastructure projects, such as the un-utilised ablution block at Rongo Sub-County Hospital, incomplete renovation work at Awendo Sub-County Hospital, and unfinished dispensary constructions at Olasi, Buembu, and Nyamware.
The Auditor further highlighted issues with the county’s Integrated Payroll and Personnel Database (IPPD), revealing that 44 officers’ job designations were not defined. The review also exposed weaknesses in the internal controls for the payment of salary arrears amounting to KSh 46.09 million, which were processed by a single officer due to a lack of staff in the payroll section.
“In these circumstances, the effectiveness of internal controls over IPPD could not be confirmed,” the report concludes.
