The Kitale High Court in Trans Nzoia County has delivered a significant ruling, asserting that devolved units and governors do not possess the authority to audit pending bills accrued by previous administrations.
In a ruling issued on a Wednesday, Justice A. C. Mirima firmly established that the responsibility for auditing past debts falls squarely upon the Office of the Auditor General.
The legal challenge was brought forth by a concerned citizen who contested Trans Nzoia County’s decision to undertake an audit of pending bills. Justice Mirima’s ruling highlighted that Trans Nzoia County’s actions were in violation of both the Public Finance Management Act and the Public Finance Management (County Governments) Regulations of 2015.
This was due to the auditing of pending bills occurring without the involvement of the Office of the Auditor General.
The judgment unequivocally declared, “The establishment of the Taskforce on Pending Bills and Human Resource Audit by the Governor of Trans Nzoia County, usurping the powers of the Auditor General and those of the Internal Audit Office and the Audit Committee of the County Government of Trans Nzoia County, is unconstitutional, null and void.”
Justice Mirima concurred with the petitioner’s argument, asserting that the Taskforce’s audit report lacked the Auditor-General’s participation in the process. Consequently, the judge ordered the Auditor-General to assess the report and determine its compliance with constitutional and legal requirements.
Moreover, the Auditor-General was granted the option to reject the report, with a mandated decision and communication to Trans Nzoia County within 60 days of service. Once a decision to adopt the report is communicated, it will be executed in accordance with the law.
In the event of the Auditor-General’s complete rejection of the taskforce’s audit report, or if Trans Nzoia County fails to adhere to the report and judgment as directed, the declaration of the task force’s unconstitutionality will take immediate effect.
Justice Mirima reinforced this by stating, “Once the declaration of unconstitutionality of the Taskforce and its report sets in, the proceedings of the Taskforce and the resultant findings and recommendations, along with any actions taken by the Respondents in the implementation of the Audit Report, shall have no legal standing.”
Consequently, these actions would be nullified, and the state of affairs would revert to its state before the Taskforce’s establishment. This landmark judgment is expected to have ramifications for other counties currently engaged in auditing pending bills.
