This archive report was first published on 29 June 2021.
On June 29, 2021, a report by the Auditor-General shed light on the mismanagement of the Affirmative Action Fund, which is meant to support vulnerable populations.
The fund, which received Sh2.4 billion in the 2019-2020 financial year, was meant to support various projects across the counties. However, a significant portion of the funds was diverted by some beneficiaries for unauthorized purposes, including merry-go-rounds and other projects not approved by the fund managers.
According to the report, women groups in 10 counties were involved in the irregularities, including diverting funds for chicken rearing projects to table banking initiatives without the approval of the fund and the board.
For instance, a youth group in Kirinyaga County allocated Sh100,000 from the fund for a chicken rearing project but diverted the funding into a table banking project without the approval of the fund and the board.
"There were also no records in support of the operation of the table banking project," the audit concluded.
In Tharaka Nithi, a self-help group registered on March 16, 2017, requested a grant of Sh150,000 to purchase an incubator for hatching chicks. However, the group diverted the funds and bought a motorbike costing Sh106,000 and shared amongst the members the balance of Sh59,000.
Another group consisting of persons with disabilities registered on November 4, 2014, applied for Sh236,000 for the purchase of an incubator for chicks for sale. However, during the audit, it was revealed that out of Sh189,000 received, the group diverted the funds and each of the 16 group members received Sh10,000 while the balance of Sh29,000 was used for table banking.
No explanations were provided for the irregular diversions, the report concluded.
Additionally, the report flagged irregular procurement of Sh11 million in Kisumu and Sh15.5 million in Homa Bay for construction of a market and sheds in Kisumu town and Rangwe respectively. The project for the construction of market sheds and public toilets in Rangwe town was allegedly done using the quotations method of procurement, which was irregular as the cost of the project exceeded the stipulated threshold of Sh4 million in the Public Procurement and Disposal (Amendment) Regulations of 2013.
Records also show that four counties – Kilifi, Turkana Nyamira and Nairobi – did not acknowledge receipt of funds amounting to Sh160 million.
"In the circumstances, the accuracy of the reported transfers to counties of Sh1.9 billion and the unspent fund balances held at the counties of Sh475 million could not be confirmed," the report noted.
