Edward Ouko reveals Lee Kinyanjui's weak revenue collection

Auditor-General Edward Ouko. PHOTO | KEVIN ODIT | NATION MEDIA GROUP

What you need to know:

  • The report states that no explanation was given for non-collection of the arrears from traders.

  • 2017/18 report reveals the county has liquor license arrears of Sh66,977,000.
  • Plot rent arrears according to the report stand at Sh3,711,043,174 with only Sh349,270,576 collected.

Nakuru County government is grappling with arrears of at least Sh4 billion, owed as rent for land, market stalls and liquor license fees, according to the latest auditor-general’s report.

Auditor-General Edward Ouko in the 2017/18 report revealed the county has liquor license arrears of Sh66,977,000.

It emerged that the county administration has neither been collecting the arrear nor issuing traders demand notices of the outstanding balances.

Land rates arrears according to the report stand at Sh3,711,043,174 with only Sh349,270,576 collected.

Market stalls fees arrears from four sampled sub counties stood at Sh11,848,806 by June 30, 2018.

The report states that no explanation was given for non-collection of the arrears from traders.

Also uncollected is more than Sh200million house rent.

The report further revealed that nearly Sh13 million collected as motor vehicle clamping fees in Nakuru County has not been accounted for.

The report says that during the year under review, there was no evidence of banking for the money collected through ZIZI, LAIFOMS and the manual system.

Interestingly, the report revealed that the county government has implemented the ZIZI and LAIFOMS systems, which have not been integrated with the Integrated Financial Management System (Ifmis).

Out of the money, Sh11million was collected manually.

In Nakuru Town East Sub-County alone, Mr Ouko indicated that at least Sh2 million revenue could not be accounted for.

“The collection of a total of Sh12,992,600 could not be explained or accounted for as there was no evidence of banking or financial statements,” the report revealed.

The report has further cast doubts on Sh3,858,426,994 declared as bank balance by the end of the financial year, an amount not supported by bank statements.

“Twenty bank accounts with a total of Sh3,659,901,738 had no cash books maintained and could therefore not be verified,” says the report.

 Mr Ouko further observed that accounting officers did not ensure that bank reconciliation statements were prepared and submitted as per the law.