This archive report was first published on 13 October 2019.
Audit queries have been raised over the expenditure of Sh6 billion by Nairobi County government for the financial year ending June 2019, with the Auditor General Edward Ouko citing lack of supporting documents for the expenditure.
According to the report released on March 20, 2019, the county did not disclose an amount of Sh3,045,914,596 held in three different bank accounts, and an excess amount of Sh652,786,602 was paid to AAR Insurance Kenya Limited for staff medical insurance cover without explanation.
Furthermore, the audit revealed that Sh561,841,394 was spent on asset acquisition but the county has not submitted any documentation to support the expenditure, and Sh421,287,000 was used to pay for scholarship but the county has no supporting document or even the list of beneficiaries.
Section 104(1) of Public Finance Management Act 2012 requires the county treasury to ensure proper management and control of accounting for the finances of the county government, yet Nairobi's county government ignored this requirement and irregularly paid suppliers Sh381,841,224 in cash.
The audit also found that the county used Sh592,852,611 of taxpayers' monies on projects which have long stalled, including construction of a perimeter wall at Mji wa Huruma, rehabilitation of Gaturo road, St Martin's Catholic church road, Ndwaru road in Dagoretti and Mother Teresa road in Ruaraka.
Additionally, the county executive paid a vendor Sh152,055,313 for purportedly collecting revenue for the county government without justification, and the county cancelled 210 receipts worth Sh45,364,475 without explanation.
The Auditor General expressed his inability to obtain sufficient audit evidence to provide a basis for audit opinion on the financial statements, citing a "Disclaimer of Opinion".
