20 March 2019

Kenya: Misuse of CDF Money Rampant, Says Auditor General

Misuse of the National Government-Constituency Development Fund (NG-CDF) continues unabated according to the latest audit report by Auditor General Edward Ouko tabled in Parliament.

The reports for the year ended June 2017 tabled by Majority Leader Aden Duale, indicts constituencies for failing to provide supporting documents on the millions of taxpayers' money allocated to them.

In Kisumu East for instance, Mr Ouko says residents were denied services that were due to them as the constituency did not utilise Sh7.5 million in its budget.

"Underutilisation of the budget denned the constituent's services that were due to them," Mr Ouko says in his report.

The constituency that has been under the leadership of Shakeel Shabbir is also on the spot for spending Sh2.8 million on unapproved projects.

SH2.4 MILLION

According to the report, Sh2.4 million was paid to various schools for the purchase of laboratory equipment, while Sh450, 000 was allegedly used for the construction of Rapogi footbridge.

"No indication has been given on how these projects were approved since they are not in the approved projects list," Mr Ouko says.

The constituency also spent Sh2.2 million to construct two classrooms at Tido Primary School. An audit revealed multiple cracks on walls of the building whose construction was completed in 2017.

The project was done using emergency funds despite not meeting the threshold to be classified as one. It contravened the CDF Act 2015.

Mr Ouko also queried how Sh1.3 million that was set aside for the construction of Nyaori road was used to procure identification documents. An award of the contractor was not availed for audit.

"There was no indication that the project had been approved by the National Government-Constituency Development Fund since it was not in the approved projects list," the auditor said.

BURSARY

In Emuhaya constituency, Mr Ouko questioned how Sh9.5 million that was meant for bursary for needy students was spent. There were no acknowledgement letters nor receipts to indicate that the money was disbursed.

"In the circumstances, it was not possible to ascertain whether the funds disbursed reached the intended beneficiaries hence the propriety of the expenditure could not be ascertained," Mr Ouko says in his report.

Mr Ouko also questioned how Sh1.5 million meant for construction of three classrooms at Emwatsi Primary School was used.

INSPECTION

During verification of the project, officers from the Office of the Auditor General noted that one of the classrooms had one wall not done. Instead, the contractor used a wall of an existing classroom as part of the new structure.

"No variation order was availed as evidence for deviation from the contract agreement. Floors for all the three classrooms had cracks and indication of poor workmanship," reads the audit report.

Mr Ouko also says that there were no project progress reports from the inspection and acceptance committee.

"There were no original tender documents for the successful contractor. Other requirements like National Construction Authority certificate and tax compliance certificate were also not availed for audit review," Mr Ouko says.

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