Hassan demands probe as millions missing in county

Mombasa Governor Ali Hassan Jaoho and Senator Hassan Omar at a past event. The Senator has demanded investigations into audit findings which raise questions about the management of finances at the Mombasa county government. FILE PHOTO | LABAN WALLOGA |   NATION MEDIA GROUP

In Summary

• The Auditor-General’s report details incidents in which millions of shillings could not be accounted for in the financial year ended June 2014.
• In his report, the Auditor-General, Mr Edward Ouko, said that out of the total revenue of Sh1.715 billion collected by the county, only Sh1.219 billion had been deposited in its accounts by June 2014.
• The report also revealed that Governor Hassan Joho’s office had an outstanding imprest of Sh44.7 million which was not supported by any documents.

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Mombasa Senator Hassan Omar has demanded investigations into audit findings which raise questions about the management of finances at the Mombasa county government.

The Auditor-General’s report details incidents in which millions of shillings could not be accounted for in the financial year ended June 2014.

Mr Hassan said these findings call for urgent investigations to ascertain, among others, the loss of Sh496 million. He said those responsible should be prosecuted immediately.

He accused the Mombasa County Assembly of failing in its responsibility of checking the county government.

“I have read many reports from the Auditor-General. I have not read a damning report such as this one before. I want an explanation as to why Sh496 million was not banked. I hope (Mombasa County Assembly Members) will work on it and recommend prosecution of those who embezzled these county funds,” Mr Omar said during an Iftar (breaking the fast) dinner that he hosted at Fort Jesus.

In his report, the Auditor-General, Mr Edward Ouko, said that out of the total revenue of Sh1.715 billion collected by the county, only Sh1.219 billion had been deposited in its accounts by June 2014. “This implies that Sh496,292,124 was not banked in the county revenue fund account. This could be an indication that the revenue was spent without the approval of the Controller of Budget,” the report said.

The report also says that the county performed poorly in collecting revenue, only raising Sh1.715 billion out of a target of Sh5.07 billion. The auditor said only three sources of revenue managed to raise 50 per cent of the target and said the county relied on the old revenue system used by the municipal council.

On the reasons for failing to meet the revenue target, the report shows, was exemption of 96 manufacturers from paying cess. In one case, the reports shows that the county lost Sh85 million in six months.

“A spot check at Shanzu barrier revealed that one transport company exempted from paying cess without following the due process had the county government forego cess revenue amounting to Sh85,451,500 over a duration of six months,” the report says.

It also questions the decision by the county to use its inspectorate to collect parking fees and deposit the money in a separate bank account. The audit also found out that a total of Sh217.3 million in revenue was deposited in accounts other than the designated revenue collection account.

“A further review indicated that revenue totalling Sh217,330,354 was not transferred to the county Revenue Fund at the Central Bank of Kenya in line with the requirement of Public Finance Management Act, 2012,” the report says.

The report also revealed that Governor Hassan Joho’s office had an outstanding imprest of Sh44.7 million which was not supported by any documents. The audit discovered that Sh8.5 million was not declared in the imprest schedule while Sh4.6 million in imprest was held by county officers who had more than one case of undeclared imprest.

Some Sh414 million given as a conditional grant for Coast General Hospital had not been used by the time of the audit, the report said.