Former and current state officials under scrutiny over financial mismanagement, procurement flaws

Former and current officials from several state agencies are under scrutiny over financial mismanagement and procurement flaws during the Jubilee government administration.

A parliamentary report by the Public Accounts Committee (PAC) has highlighted widespread financial irregularities, prompting calls for the Ethics and Anti-Corruption Commission (EACC) to conduct investigations.

The report, covering the financial year ending June 30, 2022, recommends disciplinary action against officials involved.

One of the cases flagged involves the Fisheries Department, where Sh1.6 billion was spent on the Liwatoni tuna fish hub, Sh1.1 billion for construction and Sh500 million for other expenses.

Auditor General Nancy Gathungu raised concerns over missing documentation, including feasibility studies and environmental assessments, making it impossible to confirm if the funds were used appropriately.

“The committee recommends that the EACC expeditiously conducts investigations into the entire project,” the report stated. The project remains unfinished.

Another flagged expenditure is Sh2.8 million, reportedly used to stock unspecified dams and fish ponds.

The committee found that the fingerlings were delivered a year before procurement approvals, raising concerns about accountability.

“The committee recommends that the EACC expeditiously conducts investigations into the matter and that the accounting officer surcharges and initiates disciplinary action on those involved,” the report stated.

Additionally, MPs highlighted a Sh34 million loss at the Molo law courts, recommending further investigations.

Similar financial discrepancies were noted at Embu, Nakuru, and Malindi court stations, with recovery efforts suggested.

The MPs also questioned a Sh446 million tender for a youth employment and vocational training project.

The contract was awarded before a financier was identified, with procurement outsourced to a German-based agent. The PAC raised concerns about a financing agreement that appeared to favour German interests.

“The committee recommends that the EACC conducts investigations into the procurement,” the report stated.

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Concerns were also raised over irregular cost variations in the construction of a fire station and street lights in Lodwar town.

The PAC dismissed claims that the contractor compensated for the discrepancies.

“The committee noted that the purported compensation by the contractor was unauthorized and irregular,” the report stated.

In Kisumu County, auditors discovered a missing trailer linked to a government project, with no documentation explaining its absence.

At least Sh10 million remains unaccounted for, prompting MPs to call for an investigation.