Ministry splashes Sh247m on airtime, fares, allowances

Auditor General Nancy Gathungu. PHOTO | LUCY WANJIRU | NMG

By EDWIN MUTAI
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Summary

• The State Department for Mining splashed Sh247 million on purchase of air tickets, airtime and payment of allowances from funds allocated for developments, Auditor-General reveals.
• Auditor-General Nancy Gathungu says the department spent Sh247,054,005 in the year to June 2019 that was meant for projects like construction and refurbishment of buildings, purchase of vehicles and office equipment.

The State Department for Mining splashed Sh247 million on purchase of air tickets, airtime and payment of allowances from funds allocated for developments, Auditor-General reveals.

Auditor-General Nancy Gathungu says the department spent Sh247,054,005 in the year to June 2019 that was meant for projects like construction and refurbishment of buildings, purchase of vehicles and office equipment.

“However, the supporting schedules provided for audit indicated that the bulk of the payment reported under the acquisition of assets related to purchase of air tickets, payment of allowances and imprest surrenders,” Ms Gathungu said in a qualified audit opinion of the State Department’s books of accounts.

She said it could not be confirmed that the State Department complied with section 43 of the Public Finance Management Act, 2012 which prohibits reallocation of funds appropriated for capital expenditure and section 43(b) of the Public Finance Management Regulations, 2015.

The regulations provide that an accounting officer shall ensure that public funds entrusted to their care are properly safeguarded and are applied for purposes only which they were intended and approved by the National Assembly.

“Under the circumstances, the accuracy of the acquisition of assets expenditure of Sh247,054,005 and the fixed assets balance of Sh464,024,300 as at June 2019, reflected under annex 3-summary of fixed assets register, could not be confirmed,” Ms Gathungu said.

Ms Gathungu also raised the red flag over the stalled head office refurbishment project that saw Sh20 million paid for incomplete works.

She said Sh45.66 million had been allocated in the year under review for routine maintenance of other projects.

“The amount includes Sh13,875,378 paid to contractors and sub-contractors undertaking refurbishment of works at the Ministry head office-Madini House.

“The 24-month period refurbishment works contract was signed in July, 2017 at a contract sum of Sh46,100,888,” she said.

However, Ms Gathungu said as at the time of concluding the audit in December, 2019, five months after the completion date, the works were yet to be completed and appeared to have stalled since the contractor was not on site.