Makueni Governor Response to Auditor's Report on Misappropriation of County Funds

REPUBLIC OF KENYA
 

GOVERNMENT OF MAKUENI COUNTY A RESPONSE TO MEDIA REPORTS ON GOVERNMENT OF MAKUENI COUNTY AUDIT REPORT FOR THE PERIOD ENDING JUNE, 2013.

The Government of Makueni County has noted the Media Reports on its Audit Report for the period ended June, 2013 raising issues regarding the Financial Management of the Public Funds of the County.
 

In the public interest, the Government wishes to respond to the issues as follows:-
 

1. UNAUTHORIZED WITHDRAWAL OF FUNDS (KES 42,415,277) FROM THE REVENUE ACCOUNT.
 

The issue raised is that, the Government of Makueni County made bank withdrawals totalling Kes. 42, 415,277 from the County Revenue Account between the months of April and June, 2013, without the approval of the Controller of Budget, contrary to Section 16 (2) of the County Government Public Finance Management Transition Act, 2013.
 

The position is that the County Government came into office on 27th March, 2013 and inherited three defunct Local Authorities. The said defunct Local Authorities were operating on an approved budget for the FY 2012/2013 which budget was supposed to cater for the operations of the defunct Local Authorities up to 30th June, 2013.

The County Government inherited 271 employees from the defunct Local Authorities. The amount in question i.e. Kes 42,415,277 was used to pay salaries of the inherited employees as mentioned above
in line with the approved budget of the defunct Local Authorities.
 

The newly established County Government received seed money from the Exchequer for its establishment and for payment of salaries for both the Executive and the Members of the County Assembly as appropriated by the National Assembly.
 

When the issue of the expenditure of Kes 42,415,277 was raised by the Kenya National Audit Office, the County Government sought direction from the Controller of Budget on the matter. 

Subsequently, we were advised that all revenues collected should be transferred to the Government of Makueni County Account at the Central Bank of Kenya and henceforth this has been followed to the letter and all revenue withdrawals have since been approved by the Controller of Budget as required under the Public Finance Management Act, 2012. 

It is worthwhile to confirm that there was no loss of public funds whatsoever.
 

2. CONSTRUCTION OF WASHROOMS.
 

The report states that a cashier was issued with an imprest of Kes. 3,839,716 vide two cheques of Kes. 1,919,858 and Kes. 1,919,858 in the month of March 2013, for construction of two washrooms.

Indeed the two said washrooms were paid for and constructed at the above cost before the County Government assumed office. The construction was authorized by the then Interim County Secretary posted to Makueni by the Transitional Authority.

Subsequently, the Governor suspended the staff involved in the inflated cost of construction of the Washrooms.

3. COUNTY GOVERNMENT’S ACTION TO CURB CORRUPT PRACTICES
 

The Governor wrote to the Kenya National Audit office vide a letter referenced FIN/7/(4) of 3rd June, 2013 requesting for a forensic audit on Kes 154,000,000 and Kes 132,000,000 being LATF transfer funds to the defunct County Council of Makueni because the moneys were spent unlawfully. On the basis of the above, the Governor suspended four officials awaiting KENAO’s report.

Further, the Governor through letter referenced EAC/01/02 of August 20th, 2013 requested the Ethics and Anti- Corruption Commission to carry out investigations of the said LATF funds and take appropriate action.

CONCLUSION
 

We hope that this information clarifies the County Government’s position on the Audit report for the period ending June, 2013 and the attendant media reports.

The Government of Makueni County is fully committed to fighting corruption at all levels.

KIVUTHA KIBWANA,
GOVERNOR - GOVERNMENT OF MAKUENI COUNTY