Governor Susan Kihika’s administration in Nakuru County has come under intense scrutiny following a damning report by the Auditor General, which exposes numerous irregularities and mismanagement of public funds.
The report reveals a pattern of financial misconduct and poor governance that has significantly tarnished Governor Kihika’s reputation.
Among the most alarming findings is the revelation that the county operated 15 accounts with commercial banks, directly violating regulations that mandate the use of the Central Bank of Kenya.
This breach raises serious questions about transparency and accountability in the county’s financial operations.
The report further highlights the mismanagement of human resources, with 77 employees retained beyond the mandatory retirement age, costing the county Sh36.17 million in salaries.
This blatant disregard for established policies not only strains the county’s finances but also raises concerns about favoritism and inefficiency in the hiring process.
Additionally, the county lacks ownership documents for 996 parcels of land and logbooks for 445 motor vehicles, further exposing the poor state of asset management.
The situation is exacerbated by land ownership disputes, particularly for Njoro Central DEB Primary School and other schools, where illegal encroachments have greatly affected school operations.
Financial mismanagement is a recurring theme in the report. A staggering Sh104.99 million decrease in deposits and retentions was not reflected in the cash flow statement, indicating a lack of proper financial oversight.
Employee pay discrepancies amounted to Sh6.45 billion, with Sh445.9 million missing from permanent staff salaries, Sh182.8 million overpaid to temporary staff, and Sh243.3 million overpaid for personal allowances.
Pension contributions were underpaid by Sh12.4 million, while other personnel payments exceeded the budget by Sh30.7 million. These irregularities suggest a systemic failure in payroll management and financial controls.
The county’s spending on travel and training also came under fire. Sh366.83 million was spent on travel, including Sh19.57 million for training, yet there was no evidence of a training needs assessment or a clear nomination process for participants.
Similarly, Sh93.3 million spent on training lacked a training policy, needs assessment, or course approvals, raising doubts about the value derived from these expenditures.
Misclassification of funds was another issue, with Sh5.9 million meant for domestic travel wrongly classified as foreign travel, and Sh15.9 million spent on other expenses misclassified as routine maintenance of assets.
Additionally, Sh25.8 million for office furniture and equipment was incorrectly recorded under asset purchases, further highlighting the county’s poor financial practices.
The report also uncovered questionable payments to law firms, with Sh22.6 million paid without proper documentation or approvals.
A budget shortfall of Sh6.95 billion, coupled with Sh701.3 million in unspent funds, has severely impacted service delivery. Pending bills totaling Sh1.4 billion, some dating back to 2011, remain unverified due to the absence of a Pending Bills Committee, further straining the county’s finances.
The Department of Lands was not spared, with land acquisitions totaling Sh15.49 million lacking necessary approvals and documentation.
Payments for land in Elementaita were made years after the agreement, and land transfers and consents for several properties were incomplete or missing.
The Department of Water and Irrigation also failed to achieve its objectives, spending Sh84.5 million on water projects that remain incomplete, with missing project signposts, unfinished pipe installations, and no water distribution to show for the expenditure.
The Auditor General’s report paints a grim picture of Governor Susan Kihika’s administration, marked by financial mismanagement, lack of accountability, and poor governance.
These findings have damaged her reputation and cast a shadow over her leadership, raising serious concerns about the future of Nakuru County under her stewardship.
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