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Civil Service Fraud

Ministry Uses Sh247m Illegally On airtime, fares Despite Crying of Being Cash-strapped

While the government continues to cry of being cash-strapped, the State Department for Mining used Sh247 million on miscellaneous activities the Auditor-General (AG) has revealed.

The money which was taken from funds allocated for developments was used to purchase air tickets, airtime, and payment of allowances.

Nancy Gathungu, the AG, says the department spent Sh247,054,005 in the year to June 2019 illegally as the money 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 purchasing of air tickets, payment of allowances and imprest surrenders,” the AG stated in a qualified audit opinion of the State Department’s books of accounts.

According to her, the splashing of the money goes against section 43 of the Public Finance Management Act, 2012 which prohibits the reallocation of funds appropriated for capital expenditure, and section 43(b) of the Public Finance Management Regulations, 2015.

“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 of June 2019, reflected under annex 3-summary of fixed assets register, could not be confirmed,” Ms. Gathungu said.

The AG also raised the issue of some Sh20 million stalled head office refurbishment project. She says the money was paid for incomplete works. She also raised a red plag over Sh45.66 million that was 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 the 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


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