The Auditor General has raised serious concerns about the financial management of Kitui County Government, citing numerous irregularities amounting to billions of shillings, stalled projects, and non-compliance with relevant laws.
In her latest audit report, tabled in Parliament, Auditor General Nancy Gathungu revealed that the administration of Governor Julius Malombe had discrepancies in cash and cash equivalents, with an unverified sum of Ksh 670 million.
The audit report for the financial year ending June 30, 2024, further shows that the Kitui County Government failed to collect outstanding property rates amounting to Sh 1.09 billion owed to the county.
Additionally, a comparison between the financial statements and the Integrated Financial Management Information System (IFMIS) trial balance highlighted a variance of Sh 621.5 million. The financial statement listed transfers to other government entities at Sh 1.04 billion, while the IFMIS balance showed Sh 1.4 billion, leaving a discrepancy of Sh 356.2 million.
“In these circumstances, the accuracy and completeness of the amounts as reflected in the financial statements could not be confirmed,” the report states.
A review of bank reconciliation statements revealed discrepancies involving unpresented cheques and receipts in the cashbook, which were not recorded in bank statements, totalling Sh 749.5 million and Sh 744.4 million respectively. These transactions, which were from the period between July 1, 2024, and July 12, 2024, fell outside the financial year in question.
“As a result, the accuracy and completeness of the cash and cash equivalents balance of Sh 670 million could not be confirmed,” the Auditor General reports.
The audit also highlighted that salaries were paid to employees contrary to the one-third basic salary rule. A review of the Integrated Payroll and Personnel Database (IPPD) payroll revealed that 1,909 employees received a net salary of less than one-third of their basic pay, which violates Section 19 (3) of the Employment Act 2007.
According to the law, an employer cannot deduct more than two-thirds of an employee’s wages at any one time. Additionally, the Public Service Commission’s Human Resource Policies and Procedures Manual specifies that public officers should not over-commit their salaries beyond two-thirds of their basic pay.
Governor Malombe’s administration was also criticised for several stalled projects, with contractors abandoning sites, particularly in the Health Department, where unfinished projects amount to Sh 404.5 million.
These projects include a storied maternity ward at Kitui County Referral Hospital, an X-ray building at Kauwi Hospital, and an oxygen plant machine at Kitui County Referral Hospital.
For instance, a contract for the completion of an X-ray building at Kauwi Hospital was awarded for Sh 2.2 million, with a deadline for completion in February of the previous year. However, a project verification carried out on September 17, 2024, revealed that the X-ray building was completed but not in use, as the installation of the X-ray machine was still pending. Notably, the hospital had an X-ray machine delivered in 2017-18 for Sh 70 million, but it has yet to be installed and commissioned.
Additionally, a contract was awarded for the supply, installation, and commissioning of an oxygen plant for Kitui Referral Hospital for Sh 14.5 million. However, physical verification of the project on September 11, 2024, showed that the plant had not been installed or commissioned, and it was being stored in an unsecured location exposed to weather conditions.
The delay in installation and commissioning of the oxygen plant was attributed to disputes between the County Executive and the supplier, due to non-payment for the delivery. However, the report states that the dispute has not been resolved promptly, and it remains unclear whether efforts are being made to address the situation. As a result, the public may not receive value for money from the uncompleted projects.
Further audit inspections revealed that the construction of the Livestock Office Block, Tyaa Sumpwell, civil works at Tyaa River, and a Snake Pit at Mutomo Reptile Park remain incomplete, with discrepancies in project implementation when compared to the contract specifications.
These findings suggest significant financial mismanagement and a lack of accountability within the Kitui County Government, raising concerns about the effective use of public funds.
