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In the Hot Seat

EACC tracing Nandi Sh100m 'diverted' by officials

Posted on May 23, 2017 at 7:25 PM Comments comments (4)

By MATHEWS NDANYI @ndanyi_mathews

EACC officers are tracing more than Sh100 million suspected to have been stolen or diverted from Nandi county and hidden in the houses of top officials.

Sources said county officials had been hurrying to pay bills and in the process cash from the county coffers has been diverted within the last three months.

Sources said the probe in Nandi involves more than Sh2 billion allegedly misused by officers in the last two years.

MPs Alfred Keter (Nandi Hills) and Oscar Sudi (Kapseret) have asked the EACC to ensure prosecution of those who have misused funds. “There has been serious looting of public resources in Nandi,” Keter said.

Detectives are looking for eight seniors officers for questioning. Most of them are suspected to be hiding the stolen cash in their houses.

EACC detectives on Friday night arrested Roads chief officer Alex Buigut and recovered Sh5.7 million in cash from his house in Langas estate, Eldoret.

EACC deputy director Enock Otiko said the officials will be prosecuted for the loss of funds.

Governor Cleophas Lagat lost in the Jubilee primaries to Senator Stephen Sang, who had been on the forefront of questioning how more than Sh12.5 billion allocated to the county had been used.


Arrested Nandi County Officer reveals EACC took more money than what was announced

Posted on May 22, 2017 at 7:10 PM Comments comments (0)

Updated May 23

Jubilee Party Nandi County Senate nominee Cherargei Kiprotich now claims the Ethics and Anti Corruption Commission (EACC) is hiding vital information in relation to the amount of money that was found during a raid in the house of Nandi County Chief Officer in charge of Roads and Infrastructure, Alex Buigut.

Sh5.74 million and a bulk of tender and other government business documents belonging to Nandi County was recovered during the Friday night raidat the private apartment belonging to Buigut in Langas estate, Eldoret town.

However addressing the press in Eldoret on Monday, Cherargei claimed the amount of money recovered from the house was more than the one reported.

He now wants the EACC chairman Bishop Eliud Wabukhala to overhaul its regional officers.

"There are EACC officials who are working to help exonerate corrupt public officers in the country and this is why I am asking Bishop Wabukhala to do an overhaul of its staff especially in regional offices," noted Cherargei.

He further claimed that Nandi county has lost over Sh3 billion due to corruption.

"We need investigations into corruption in Nandi county to be hastened because locals have suffered a lot. The roads are in pathetic conditions, hospitals have no drugs and no bursaries were issued for the past four years," noted Cherargei.


Auditor General puts Rutto on spot over Sh221 million Bomet stadium, workers pay

Posted on December 26, 2016 at 6:55 PM Comments comments (1)

BY JAMES MBAKA,@onchirimbaka

An explosive Auditor General report has questioned the construction of the 37,000-sitter Bomet IAAF Stadium without a title deed.

Edward Ouko's 2014/15 financial year report also raises concern that the cost of the project, initially estimated as Sh221,293,760, could shoot up.

This is because the contractor had already been paid a total of Sh196,075,277 upon completion of 50 per cent of the work as at December 2015.

The report observes that there is doubt on whether the cost was proper given that the county failed to produce ownership documents during the audit.

The spotlight has also been turned on Governor Isaac Rutto over Sh48,982,911 in wages to casual workers in the Bomet stadium project without a list of those engaged.


The auditor says it was difficult to confirm the expenditure given that the muster roll was not properly maintained and did not have the rate used to make payments, the total amount payable to each casual worker and the number of days.

“Engagement letters were also not availed for audit examination,” the report says.

The county spent Sh 8,633,108 drilling "dry" boreholes in the hope that they would yield water but this was not the case. Three of the five boreholes had hydrological confirmation reports while two did not.

The report also questions an irregular payment of Sh1,223,800 for hydrological survey services despite the fact that the company was not among those pre-qualified for that financial year.

“Although the contractor was a licensed geologist, the process of engaging him was not subjected to the laid down procurement procedures. It appears the geologist was single-sourced,” says the report.

The auditor further observes that there was no need for a hydrological survey given there was no evidence that boreholes were sunk at Lelaitich, Kosia, Lugumek and Terek schools as recommended in the hydrological report.


The county also could not explain the Sh19,244,940 set aside for stipends and NHIF contributions for the elderly and the people living with disabilities. Bomet had set aside Sh255,523,360 but only Sh236,278,420 was accounted for.

There was also no evidence that each of the elderly persons received Sh2,030 sent through M-Pesa, making it impossible to confirm the sustainability of the project.

Rutto is also on the spot for failing to account for Sh 28,215,656 meant for bursaries and donations in the same financial year. The county accounted for only Sh27,944,908 of the Sh56,160,564 allegedly on bursaries and donations.

“No payment vouchers were produced for audit examination and it was therefore not possible to ascertain how much was spent,” the report notes.

The report also states that the county irregularly hired 326 Area Community Administrators, 411 enforcement officers and 685 officers without designations, ballooning the workforce to 3,750 workers, yet the recommendation is for 2,328.


“The recruitment process was not properly documented and the recruitment was not carried out as by the county public service board as required by County Government Act, 2012,” says the report.


Read: Bomet MCAs plan motion to impeach Governor


The county executive for finance was blamed for failing to set wage limits as provided in law, leading to rises to unsustainable levels.

The report also revealed that Bomet made a full contractual payment of Sh763,394 to a firm for the construction of Chebunyo cattle sale yard, before completion of works, leading aiding the contractor to abandon the project.

Taxpayers were defrauded of Sh675,339 after the county government awarded a contract for the construction of Bomet Market Shades to the highest bidder. The bidder quoted Sh26,003,408 against the Sh25,328,068 quoted by the lowest bidder.


The county also paid a total of Sh4,463,350 to ghost' workers allegedly engaged as casuals in the health department. There was no muster roll, names of workers, amounts paid to each and their work stations, to confirm the propriety of payments.

The auditor also raises the red flag in respect to Sh4,945,000 paid for the leasing of land for extraction of quarry materials for road construction. This was without lease agreements and a payment rate.


The county further failed to explain why it resorted to leasing six ambulances from the Kenya Red Cross Society at a cost of Sh52,950,921. It had allocated Sh45,000,000 to the purchase of a fleet of ambulances in the 2014/2015 budget.

“The expenditure incurred in the year on hire of ambulances, instead of procurement, was not approved and therefore irregular,” says the report.

The Auditor General also questions the excessive Sh1,88,672 payment to a contractor for the construction of Koroma Bridge in Konoin.

The report says this was after the contract was irregularly varied from Sh14,075,220 without documentary evidence. The county also failed to withhold the compulsory Sh1,596,892 retention fee.


Account for unbanked income, Sh1bn spent, Uasin Gishu told

Posted on December 24, 2016 at 6:45 PM Comments comments (0)

BY MATHEWS NDANYI @ndanyi_mathews

A report by Auditor General Edward Ouko has questioned expenditures and other financial operations of the Uasin Gishu county amounting to more than Sh1 billion in 2014-15.

Irregular spending?

Ouko questioned direct spending of county revenue collected locally, which violates the Public Finance Management Act of 2012.

The county collected more than Sh800 million, out of which Sh133.7 million was not banked but was spent directly.

“The expenditure was thus incurred without authority from the Controller of Budget and as a result the county executive was in breach of the law,” the report says.

The county also incurred unreconciled deficits in its statements of receipts and payments amounting to Sh546.9 million. Expenditure returns from the county indicated it received Sh5.3 billion, but incurred expenditure of Sh5.9 billion during the period.

“The resultant variance between the two figures has not been reconciled or explained. Further, the source of funding for the Sh546.9 million reflected in the statements of receipts and payments has not been explained,” Ouko said.

The validity and accuracy of the Sh546.9 million figure could not be ascertained, he added.

Cash unaccounted for

The auditor general said the county may have lost about Sh2.9 million collected as land rates.

The report reveals that a review of the bank pay-in slips of rates paid by land owners was receipted and recorded in the cash books, but were not reflected in the County Revenue Account bank statements.

The county reported the matter to the bank management to confirm the authenticity of the bank deposit slips and to the police investigations department.

“The matter had not been resolved at the time of completion of the audit and there may be loss of county revenue through fraudulent pay-in slips that could not be traced to the bank accounts,” the report says.


where’s Sh106 million?

Ouko has also questioned details about proceeds from domestic borrowing by the county government. The county signed an asset financing loan agreement of Sh484.4 million with the Kenya Commercial Bank, but only Sh378.9 million was advanced. That means more than Sh106 million was not received by the county.

“No explanation was provided for not receiving the full amount for which negotiation fees had been paid,” the report states.


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