Friday, July 22, 2011

28 MPS MISUSED CDF CASH



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Twenty eight MPs are under the spotlight after the Auditor General singled out their constituencies for the loss of millions of shillings allocated under Constituency Development Fund.
Five of the constituencies where CDF funds have either been misappropriated or cannot be accounted for are represented by ministers while two are represented by assistant ministers. Kajiado North, represented by Internal Security minister and acting Foreign Affairs minister George Saitoti is among those on the list.
Also included is Aldai represented by Agriculture minister Sally Kosgei and Mbooni represented by Justice and Constitutional Affairs minister Mutula Kilonzo.
Also fingered for query is Malava constituency represented by Housing minister Soita Shitanda and Nairobi Metropolitan minister Njeru Githae's Ndia constituency.
The two constituencies represented by assistant ministers which are included on the list are Bomet and Kajiado Central represented by Home Affairs assistant minister Beatrice Kones and her Defence colleague Joseph Nkaissery.
Others named include Budalangi represented by Ababu Namwamba, Cyrus Jirongo's Lugari, Elizabeth Ongoro's Kasarani and Martin Ogindo’s Rangwe.
Also named are Wajir North, Wajir South, Baringo Central, West Mugirango, North Mugirango, Khwisero, Kigumo, Kieni, Tetu, Mwea,Baringo Central, West Mugirango, Butula and Mwatate.
Most MPs are patrons of their respective CDF and are not involved in the day to day operations of the CDF kitty. They however have great influence in deciding how the money is spent and on which projects especially in instances where they have appointed their cronies to the CDF committees.
In Saitoti’s constituency, the Auditor General says returns submitted did not have documents to show how Sh16.5 million was spent. The cash was released to finance 75 school projects, seven water projects, ten security projects, five roads and bridges and two health sector projects. “The propriety of the expenditure could not be confirmed,” the Auditor General says in the report.
He queries the allocation of Sh1.2 million from Kosgey’s Aldai constituency, which was released to a local church in January last year for the purchase of 2.42 hectares of land in Nandi-Kaptumek area meant for the construction of a girls' secondary school.
The report says that while the land was acquired and registered in the name of the proposed school, no construction had commenced by September 2010.
In Mutula’s Mbooni constituency, there were outstanding imprests totalling Sh780,000 which had yet to be accounted for by the end of the financial year. “No reason has been provided for the failure to have the imprests accounted for or recovered from the officers' salaries as provided for in the Government Financial Regulations and Procedures,” the report adds.
In Ndia, PVC water pipes valued at Sh3.3 million were procured through single sourcing. “Apart from the fact that indications are that the pipes were overpriced, it has not also been explained how the suppliers were identified,” the report states.
In Bomet, the Auditor General says, a privately registered company in Longisa was in April last year granted Sh500,000 from CDF for use in various activities which was contrary to the CDF act. “No reason has however been provided for financing a privately owned entity,” the report states.
In Kwanza, Sh4.8 million was in November 2007 allocated to a Nairobi company for the supply of an eight-tone Isuzu truck. By June last year, the company had yet to supply the truck. “No plausible reason has been provided for this clearly unsatisfactory state of affairs,” the report states.
In Malava, Sh1.5 million was fraudulently paid to an agency based in Webuye purportedly as "mobilization fee" for construction of a bridge in the constituency. In Kajiado Central, expenditure returns for some Sh15.5 million out of the Sh40 million released for various projects were not submitted for audit and hence the propriety of the expenditure could not be confirmed.
In Budalangi, the CDF treasurer and funds account manager withdrew Sh4.3 million between October 2008 and June 2010 purportedly for use in the office. “However, no documentary evidence was produced to show how the amount was utilised and accounted for, and indications are that the amount may have been misappropriated,” the report says.
In Budalangi CDF queries include Sh2.1 million alteration on the cost of constructing an administration block. The tender awarded was for Sh17.7 million but it was changed to Sh23.9 million in unclear circumstances. In Lugari, despite Sh 1.7 million being disbursed for three projects, no work on the ground had been carried out by September 28, 2010.
In Kilgoris, Sh1.8 million was allocated for environmental activities and constituency sports projects but no supporting documents were submitted, raising questions about the propriety of the expenditure.
In North Mugirango Borabu constituency, the auditor raised queries over the withdrawal in cash of Sh4.1 million from the CDF bank account by three cashiers based at the DC's office; the alleged payment in cash of Sh7.1 million against 14 projects in roads, health, education and water which had yet to reach the intended institutions by June last year and the outstanding imprests of Sh6.1 million being held by some of the CDF officials. No records were submitted to show how Sh19.8 million allocated to various projects was spent.
In Baringo Central represented by former Lands Commissioner Sammy Mwaita, the auditor general has queried the spending of Sh2.6 million for the drilling a borehole and the installation of electricity. "An audit inspection exercise carried out in December 2010 revealed that although the borehole was drilled to completion, separate information indicates that the land on which the facility had been sunk may be privately owned,” the report states.
The supply of two defective and unusable generators which cost the Wajir South CDF Sh3.2 million; the Sh7 million that Wajir North CDF allegedly paid for the construction of two water pans when the evidence indicate that the Ewaso Ngiro North Development Authority actually spent Sh10.4 million for the project and not the CDF has also been pinpointed in the report. In Rangwe, the auditor says, Sh13.7 million paid to finance various projects was not supported by relevant records.

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