The Ministry of Agriculture is on the spot for alleged mismanagement of Sh1.4 billion World Bank cash in the Kenya Climate Smart Agriculture project.
Auditor General Nancy Gathungu has raised an adverse opinion on the spending by officials managing the project.
The auditor said the project’s books of accounts do no present fairly the financial position as of June 2019.
She said the officers did not live by the agreement entered between the World Bank and the government on April 7, 2017.
The agreement required that the ministry designates internal auditors for the project at the national and county levels.https://googleads.g.doubleclick.net/pagead/ads?adsid=NT&client=ca-pub-6073518695523995&format=414×300&w=414&h=300&adk=472465266&output=html&bc=7&to=ampa&pv=1&wgl=1&asnt=0-17216603363863946331&dff=Lato%2C%20sans-serif&prev_fmts=414×96&brdim=0%2C0%2C0%2C0%2C414%2C0%2C414%2C896%2C414%2C725&ifi=4&rafmt=13&pfx=0&pwprc=4471133137&adf=3323498760&nhd=0&adx=32&ady=1626&oid=2&is_amp=5&_v=2011070101001&d_imp=1&c=152192006781&ga_cid=GA1.3.1694140964.1606210762&ga_hid=6781&dt=1606387530063&biw=414&bih=725&u_aw=414&u_ah=896&u_cd=32&u_w=414&u_h=896&u_tz=180&u_his=1&vis=1&scr_x=0&scr_y=0&url=https%3A%2F%2Fwww.the-star.co.ke%2Fnews%2F2020-11-25-gathungu-flags-sh14bn-world-bank-cash-mess-at-kilimo-house%2F&loc=https%3A%2F%2Fwww.the-star.co.ke%2Famp%2Fnews%2F2020-11-25-gathungu-flags-sh14bn-world-bank-cash-mess-at-kilimo-house%2F%3Futm_term%3DAutofeed%26utm_medium%3DSocial%26utm_source%3DTwitter%26__twitter_impression%3Dtrue&ref=https%3A%2F%2Ft.co%2F&bdt=1921&dtd=1&__amp_source_origin=https%3A%2F%2Fwww.the-star.co.ke
However, during an audit inspection last September, Kakamega, Siaya, Busia, Nyandarua and Garissa counties did not provide internal audit reports for review.
Gathungu said this was an indication the project’s internal auditors had not been designated as required in the agreement.
“The special accounts statements do not present fairly the transactions for the year and the closing balances,” Gathungu said.
The auditor queried the project’s records, which showed that the World Bank paid into the ministry accounts Sh1.3 billion, yet she had information it was Sh1.4 billion.
She said the Sh373.8 million and Sh1.029 billion was received through the KCSAP’s two special accounts.
“No reconciliation was provided for the resultant difference of Sh28 million. In the circumstances, the completeness and accuracy of the Sh1.37 billion reflected in the financial statements could not be confirmed,” Gathungu said.
The project managers said Sh17.3 million was transferred to Kalro but the financial statement reflected Sh170 million as having been advanced to the research agency.
Gathungu said no explanation was provided for reflecting the said amount in the statement of receipts and payments. The balance of Sh152 million was not supported by documentary evidence.
“Consequently, the validity, completeness and accuracy of the balance could not be confirmed,” she said.
She added that further review of Kalro’s statements revealed that the agency received Sh50 million only in the financial year 2018-19.
“The resultant difference of Sh120 million has not been reconciled or explained.”
Also queried are transfers to county governments following anomalies in the declaration of the amounts disbursed.
Whereas the financial statement showed that Sh450 million was transferred to counties, records showed that Sh1.029 billion was disbursed.
The balance sheet reflected a balance of Sh583 million in respect of the advances to counties, a figure which was not supported.
The auditor also flagged under-absorption of Sh800 million, which management attributed to delays in the procurement of goods and services.
“The underfunding affected the planned activities and programmes which may have impacted negatively on the service delivery and the public did not receive the services as planned,” the auditor said.
She concluded that based on the audit procedures performed, she could confirm that public resources were not applied lawfully and in an effective way.
Gathungu cited un-procedural payments in the desilting of Kondabilet Harambee Dam in Elgeyo Marakwet county.
Although the contractor was paid Sh11 million on May 10, 2019, the interim payment certificate that was provided did not disclose the details of work done and paid for.
Further, it was not explained what the project inspection and acceptance team used to confirm the amount paid against the actual work done.
The project’s bill of quantities did not list or factor in the breakdown of the works to be done including the length of the spillway, measurements of the depth of desilting, cutting away soil, the height of embankment and layers of compacting.
Gathungu said this was in violation of the Public Procurement and Asset Disposal Act, 2015 which requires accounting officers to provide specific requirements relating to goods, works and services procured.
“In the circumstances, the propriety in the use of public funds cannot be confirmed and value for money may not have been achieved,” the auditor said.
The project also purchased five acres of land for construction of a water pan in Nyandarua county but the transfer documents were not provided for audit review.
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