Kenya Insights

Tag: Governor Susan Kihika leadership failures

  • Panic as EACC Summons Nakuru County Officials Over Procurement Scandal

    Panic as EACC Summons Nakuru County Officials Over Procurement Scandal

    The Nakuru County government is in turmoil as the Ethics and Anti-Corruption Commission (EACC) zeroes in on a potential procurement scandal that has sent shockwaves through the region.

    Allegations of gross irregularities in purchasing sports kits and equipment during the 2023/2024 financial year have prompted the EACC to summon key county officials for questioning.

    As the investigation unfolds, concerns are mounting over-inflated costs, questionable contracts, and the fate of millions in taxpayer funds.

    The community, left reeling from substandard supplies, demands answers as the county’s leadership faces a critical test of integrity.

    Nakuru County Officials

    Nakuru County Officials Summoned by EACC Over Inflated Sports Kit Procurement

    The Ethics and Anti-Corruption Commission (EACC) has summoned several Nakuru County government officials from the procurement department. The summons are in response to allegations of procurement irregularities in the tender process for sports kits and equipment during the 2023/2024 financial year.

    In a letter dated August 1, 2024, EACC directed the officials to assist with investigations at the EACC Nakuru office on September 2, 2024. The officers summoned include:

    • Abel Mungai
    • Newton Karanja
    • Catherine Macharia
    • Ivy Kinyanjui
    • Moses Bii
    • Dominic Sigei
    • Caroline Nuru
    • Teresia Wanjiku
    • Githaiga Macharia
    • Edwin Okello
    • Beth Wacuca
    • Alex Maina
    • Annmarie Kuria

    Annmarie Kuria serves as the Director of Procurement, while Alex Maina is the Chief Officer in the Department of Youth Affairs. Maina, visibly concerned, is among those under scrutiny.

    The EACC’s investigation centers on a questionable procurement process where a football, specifically a Mikasa brand, which should have cost Sh1,300, was allegedly purchased for Sh6,250. To support their inquiry, EACC has requested a wide range of documents, including:

    • Approved budget and procurement plan for FY 2023/2024
    • Procurement requisition
    • Memo seeking approval for the advertisement
    • Advertisement notice
    • Standard tender document
    • Original tender documents from bidders
    • Appointment letters for the tender opening and evaluation committees
    • Tender opening register, minutes, and attendance records
    • Evaluation report and minutes
    • Tender negotiation minutes
    • Professional opinion
    • Notification of award/regret letters
    • Acceptance letter
    • Contract agreement
    • Local Purchase Order (LPO) or Local Service Order (LSO)

    Local Leaders Condemn Substandard Equipment in Nakuru Procurement Scandal

    Additionally, the EACC seeks invoices, receipts, delivery notes, inspection reports, payment vouchers, and bank account details related to the tender. Officers M. Odogo, F. Mwobobia, M. Miloyo, or any other authorized commission officer will collect the required documents.

    Local leaders are expressing their discontent. Robert Maeri, chairman of the community clubs, voiced frustration over the poor quality of kits and equipment.

    He revealed that when they were summoned on July 19, 2024, to verify the sports equipment, they found that the samples presented were of much lower quality than what was originally proposed.

    Furthermore, reports indicate that Sh250,000 was allocated for organizing ward tournaments and another Sh250,000 for the purchase of kits and equipment.

    Football Kenya Federation Nakuru representative, Francis Oliele, shares Maeri’s frustration, feeling that the community did not get value for the money spent.

  • Nakuru County Corruption: Exposing Financial Irregularities and Leadership Failures Under Governor Susan Kihika

    Nakuru County Corruption: Exposing Financial Irregularities and Leadership Failures Under Governor Susan Kihika

    In a shocking revelation, the Auditor General’s report has exposed severe financial irregularities in Nakuru County’s expenditure for the 2022/2023 financial year, casting a dark shadow over Governor Susan Kihika’s administration.

    The audit findings highlight gross mismanagement and questionable practices, pointing to systemic corruption and a dire need for accountability.

    Nakuru County Corruption

    Nakuru County Corruption: Governor Kihika’s Employee Compensation Discrepancies and A Billion-Shilling Mystery

    One of the most glaring issues identified in the audit is the discrepancy in employee compensation. Nakuru County reported spending over Sh6.9 billion on salaries, yet the payroll records reflect a total of Sh5.75 billion.

    This discrepancy of Sh1.15 billion remains unexplained, raising serious concerns about financial integrity.

    Additionally, Sh28.37 million, intended for the National Industrial Training Authority levy, was incorrectly classified under pension contributions, further complicating the financial landscape.

    Payroll System Malfunctions: Non-Compliance and Data Gaps

    The audit uncovered that Nakuru County paid Sh75.57 million in salaries outside the Integrated Personnel Payroll Data (IPPD) System, in violation of Treasury regulations.

    This off-system payment method, used for 199 employees, failed to capture essential data, compromising transparency.

    Moreover, the report found that 28 county officers had been retained beyond the retirement age of 60 without proper documentation, further questioning the administration’s adherence to regulations.

    Irregular Legal Fees: A Costly Oversight

    Another troubling aspect is the payment of Sh116.08 million to external law firms without adhering to proper procurement procedures.

    There was a lack of evidence for prior approval, negotiation, or itemized fee notes, suggesting that the legal fees charged may not have been justified or competitive.

    This raises red flags about the procurement process and the potential misuse of county funds.

    Procurement Violations: Bypassing Established Protocols

    The audit revealed significant procurement violations, including the purchase of drugs and medical supplies worth Sh525.10 million from private suppliers, in contravention of the Kenya Medical Supplies Authority (KEMSA) Act.

    Additionally, Sh50 million was transferred to the school feeding program fund without the necessary enabling legislation, highlighting further irregularities in financial management.

    Delayed Projects: Unfulfilled Promises and Missed Deadlines

    Several key projects in Nakuru County have faced significant delays. The construction of the Sh288.58 million office block in Milimani and the Sh886.63 million Treasury Headquarters have both been stalled, causing concern among stakeholders.

    Moreover, the county failed to remit Sh88.90 million in pension deductions, exacerbating the financial mismanagement crisis.

    Inaccuracies in Financial Statements: Unaccounted Variances

    The Auditor General’s report also highlights multiple inaccuracies in Nakuru County’s financial statements. Notable variances include:

    • A discrepancy of Kshs.1,682,880,884 between the reported transfer from the County Revenue Fund (CRF) and the audited amount.
    • Unexplained variances of Kshs.20,162 in the statement of receipts and payments compared to the recomputed amounts.
    • An unexplained variance of Kshs.251,757,686 between the statement of assets and liabilities and the statement of cash flow.
    • Inaccurate and unsupported payroll and compensation figures, including a Kshs.1,148,662,673 variance between reported compensation and payroll totals.

    These discrepancies undermine the credibility of the financial statements and highlight the need for stringent oversight and corrective measures.

    Nakuru County Corruption

    Non-Adherence to Cut-Off Period: Post-Year-End Transactions

    The report also found non-compliance with cut-off period regulations. Transactions worth Kshs.1,767,106,640, incurred after the reporting period, were incorrectly included in the previous financial year’s accounts.

    This breach of Regulation 97(4) of the Public Finance Management (County Governments) Regulations, 2015 further complicates the financial accuracy and completeness of the county’s reports.

    Nakuru County Corruption Scandals: Unsupported Expenditures and Patterns of Financial Irregularities

    Additional concerns include unsupported routine maintenance expenses, training costs, and research expenditures.

    For instance, Sh36,977,382 spent on vehicle maintenance lacked proper documentation, while Sh67,767,772 allocated for training expenses was not supported by adequate needs assessments or training plans.

    Unsupported expenditures in research, project preparation, and design also raise questions about the legitimacy of these transactions.

    Bank Balance Inaccuracies: A Lack of Transparency

    The audit revealed significant inaccuracies in the reported bank balances. Unpresented cheques and discrepancies between bank balances and cashbook records further cloud the financial transparency of Nakuru County.

    The failure to disclose and reconcile bank accounts adds another layer of complexity to the ongoing financial oversight issues.

    Governor Susan Kihika’s Leadership: A Call for Accountability

    Under Governor Susan Kihika’s leadership, Nakuru County has faced mounting scrutiny over its financial management practices.

    The audit findings reveal a pattern of corruption, mismanagement, and non-compliance with regulations. The discrepancies and irregularities highlight systemic issues that demand immediate and comprehensive reforms.

    As Nakuru County grapples with these revelations, there is an urgent need for accountability and corrective action.

    The Auditor General’s report underscores the critical importance of transparent financial practices and robust oversight mechanisms to restore public trust and ensure the proper use of taxpayer funds.

    In conclusion, the corruption scandal in Nakuru County serves as a stark reminder of the challenges facing Kenya’s local governments.

    As the spotlight turns to Governor Susan Kihika and her administration, the focus must shift to addressing these issues with the seriousness and urgency they warrant.

    The path forward should prioritize transparency, accountability, and rigorous financial management to prevent further erosion of public confidence.