Meru County Finance executive says he blocked Sh900m fake payment claims in 2014/2015

Meru County executive for Finance Jacob Kirera has said he blocked fraudulent payment claims amounting to about Sh900 million in the 2014/2015 financial year.

Speaking to Nation, Mr Kirera said he had received pending bills amounting to Sh1.5 billion yet only Sh600 million was available in the bank.

He said the anomalies led to the hiring of the private audit firm, KPMG, to audit the departments which had committed more money (for use) than what was in the account.

His revelations come after the Meru County Assembly directed the Finance Committee to summon him over failure to present the private audit report to the House.

“I engaged KPMG because the pending bills reported by various departments were not adding up with the bank balances.

“The bills were totalling to Sh1.5 billion yet we had Sh600 million only in the bank by the close of 2014/2015.

“I stood my ground and refused to pay the questionable bills. I could not pay money that I did not have,” Mr Kirera said.

He said the MCAs were opposed to the engagement of KPMG to audit the county’s books of accounts.

OPPOSED USE OF EXCESS FUNDS

“I was the only one who opposed the commitment of excess funds. The very MCAs who opposed the private audit are now too quick to demand the report. The report is being reviewed by the executive,” he said.

Last week, Meru Speaker Joseph Kaberia directed that Mr Kirera appears before the Finance Committee within seven days to explain why action should not be taken against him.

This is after the executive failed to adequately respond to a statement by County Public Accounts and Investments Committee chairman Daniel Kiogora on the audit exercise.

“It is worrying that the statement was requested in June and the executive has been seeking more time since then. The Finance Committee should summon the Finance executive within seven days. The private audit report should be [made available] to the assembly within 10 days,” the Speaker said.

Mr Kiogora had raised concern that the executive was withholding the audit report which cost the county more than Sh18 million.

The Finance executive also acknowledged that the county had pending bills amounting to Sh1.3 billion by the close of 2015/2016.

UNDISPUTED BILLS

Mr Kirera, however, said last year’s pending bills were not in dispute because the money was available in the bank by the close of the year.

“The Sh1.3 billion included money for ongoing projects which could not be paid until a certificate of completion is issued. We have already paid part of the pending bills,” he said.

On local revenue collections, Mr Kirera cited politics and hostility as the major hindrances to maximizing the county income.

He said politicians have been inciting residents against paying market rates besides shooting down finance Bills that are meant to guide revenue collection.

“An MP has severally incited market rate boycotts in the county. Revenue officers have also faced hostility [and] our vehicle was almost burnt by a mob.

“We have faced hostility in Maua, Mikinduri and Timau due to incitement of traders,” Mr Kirera said.

He added, “Politicians have also been misinterpreting finance Bills making them unpopular to the public.”

Mr Kirera said a County Revenue Board had been put in place and exuded confidence that is would seal loopholes to improve local collections.

In the 2015/2016 budget, the county had projected to collect Sh817.9 million but the figure was reviewed to Sh435.2 million through a supplementary budget in June 2016.