Mr Ouko says that several anomalies were noted in relation to the tenders like poor construction leading to lack of value for money, lack of documentary evidence to support payments as well as non-compliance with tender agreements.

The assembly also paid Sh52 million to a law firm for legal services that were not offered.

This amount, the report says, was inclusive of Sh44 million paid for unspecified and unsupported issues.

FINANCIAL RECORDS
At the Coast, billions of shillings spent by six counties in the region for the year ending 2016 cannot be accurately accounted for.

Mr Ouko cites inaccuracies in filing of financial records.

Mombasa led with discrepancies amounting to Sh7 billion, followed by Lamu with Sh5 billion, which contradicts IFMIS.

Kwale could not explain Sh20 million as reflected in its fund balance forwarded to the auditor.

For Kilifi, Sh25 million did not reconcile with the statements of receipt and payments, which differ with a summary of appropriation.

LOAN REPAYMENT

Tana River and Taita Taveta financial statements did not comply with the requirements of International Public Sector Accounting Standards.

This is as prescribed by the Public Sector Accounting Standards Board.

Anomalies noted in the six counties were unsupported adjustments, unauthorized expenditures, and undisclosed bank accounts among others.

“The statement of assets as at June 30 reflects bank balance of Sh368,211,091. However, induced in the bank balance is an amount of Sh281,172,027 being bank balance of 12 bank accounts and whose cashbooks, bank reconciliation statements and bank certificates were not availed for audit...” the report for Mombasa reads in part.

In Narok, the Assembly car loan repayment status report indicated that as at June 30, 2016, only Sh69,881,083 million representing 70 per cent had been repaid out of the total amount of Sh99,930,778 million.

LOSSES
The mortgage loan repayment status report for the same period indicated that Sh4.56 million, representing just 36 per cent, had been repaid while Sh8 million was outstanding.

According to the auditor, given the slow rate of recovery of the loans, the outstanding amounts could only be amortized in 20 or more months from June 30, 2016, which was impossible.

The auditor warned that the loans and mortgages fund was likely to suffer losses after the expiry of the term of the MCAs since the administrator had not made arrangements for complete recovery of the debts.

LOGBOOKS
In Samburu, the outstanding loan balance owed by 27 MCAs as at June 30, 2016 was Sh61.9 million.

“Further, loans were granted in absence of mortgage protection and fire policies issued by an insurance firm approved by the committee,” the report states.

The auditor also noted that the few car logbooks presented for audit verification indicated that vehicles obtained using the loans were not co-owned by the respective borrowers and the county authorities, hence it was not possible to confirm that the vehicles were bought through the proceeds of the car-loan scheme and whether there existed proper collateral for the amounts advanced.

CONFERENCES
The auditor also noted that given the monthly loan repayments due from the borrowers, Sh21.7 million worth of loans were at risk of having not been collected at the expiry of the last term of the MCAs, putting the assembly at risk of losing the amount.

In Nyandarua, the Assembly spent Sh23 million as daily subsistence allowances for MCAs and staff and hire of conference facilities for various House committees.

Reports by Silas Apollo, Caroline Wafula, Mohamed Ahmed and Eric Matara

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