NAIROBI, Kenya, Mar 21- An audit report has revealed that the previous administration of the Nairobi County cannot account for Sh21 billion.
The forensic report by audit firm KMPG revealed that the previous government was involved in serious misappropriation of funds at the county.
“Approximately Sh21 billion in payment were not processed in IFMIS and the county did not maintain adequate accounting records to facilitate scrutiny of the related transactions,” reads part of the report.
The areas which were investigated include procurement revenue collection, human resources, lands, assets and bank accounts among others.
It has emerged that the county was operating 32 bank accounts contrary to the Public Finance Management Act which requires the all county government accounts to be opened at the Central Bank of Kenya except for an imprest bank account.
It is reported that 13 out of the 32 commercial bank accounts were not declared during the handover report and five of the 13 accounts had approximately Sh120 million as at August 31, 2017 and signatories included past county officers.
Nairobi County is reported to have used five different financial systems to manage its operation during the period of July 1, 2011 to June 30, 2017.
They included Ejijipay which is an e-payment platform, Laifom a revenue receipting system, Integrated Financial Management Information System (IFIMIS) which is hosted by the National Treasury, Integrated Payroll and Personnel Database (IPPD) for staff records and payroll and Jumbo Link an online Cooperative Bank link for making payments.
However KPMG indicated that the integration of all these financial systems was not automated and in most cases, manual interventions were utilized to move data from one system to another.
The review identified 7,346 cash collection booklets issued to revenue collection attendants were subsequently deleted from Laifom, the county receipting system.
KPMG also found that the county had 161,393 properties registered for collection of land rates which were predominantly charged rates based on site value of the property last updated in 1982.
“County officers could not provide full supporting evidence relating to adjustment to land rate revenue amounting to Sh407 million for a sample of 19 rates adjustment included in our review,” reads the report.
It was found out that the county did not contain complete and accurate asset register. For example, inconsistencies were noted between the handover report and asset listing provided by the county officers.
It was further revealed that 110 vehicles owned by the county were not listed in the handover report and that there were instances the county insured vehicles that did not belong to it.
The current leadership under Governor Mike Sonko has vowed to recover all the assets and has asked the relevant authorities to step in for further investigations.