Auditor General Nancy Gathungu has raised serious concerns over irregular and questionable expenditures totaling more than Sh20 billion within the Nairobi government. Her report sheds light on what appears to be systemic failures in financial accountability at City Hall.
The report, which covers the period ending June 30 last year, highlights numerous irregularities, including unexplained expenditures, irregular procurements, and double payments under Governor Johnson Sakaja’s administration.
Gathungu’s audit uncovered discrepancies in the county’s payroll, with instances of employees sharing bank accounts and receiving double payments for salaries and allowances. Furthermore, the report reveals a loss of Sh15.42 million due to double payments to 178 county officers.
Additionally, over Sh100 million was paid out for allowances that lacked proper documentation, leading to concerns about the misuse of public funds.
The county’s financial woes extend beyond improper payments, with debts totaling over Sh100 billion, including Sh20 billion in legal fees owed to 132 advocates and stalled projects worth Sh1.36 billion.
Despite incomplete projects, the report highlights instances of awarding new contracts to contractors, raising questions about procurement processes and financial management.
In response to the report, Governor Sakaja acknowledged the challenges faced by City Hall and affirmed efforts to address them. He cited initiatives to address outstanding legal fees and rectify systemic issues within the administration.
Gathungu’s audit also raised concerns about the county’s automated revenue collection system, Nairobi Pay, suggesting potential revenue losses due to inadequate oversight and documentation.
Massive irregularities were flagged in the acquisition of assets worth over Sh566.97 million, with payment vouchers lacking proper documentation and compliance with procurement laws.
The report further questions the transfer of Sh620.61 million to the defunct Nairobi Metropolitan Services (NMS) without adequate documentation, casting doubt on the transparency and accountability of financial transactions.
Irregularities in procurement processes were also highlighted, including payments made without proper procurement plans or supporting documents, raising concerns about accountability and transparency in public spending.
