Kilifi Governor Gideon Mung’aro appeared before the Senate County Public Accounts Committee and paid a Sh500,000 fine for failing to honour an earlier summons, as scrutiny intensified over audit queries on the county’s financial management.
He presented a cheque of Sh500,000 before the committee, after which proceedings focused on audit concerns from the 2024/25 financial year, particularly unsupported expenditure and discrepancies in revenue accounts.
According to the audit report, questions were raised over disbursements made without clear supporting documentation or authorisation. It states: "The Receiver of Revenue’s statement of revenue and disbursements reflects total disbursements and other charges of Sh1, 382, 739, 289, which includes an amount of Sh44, 352, 180 paid to a service provider at the rate of Sh3,696,015 per month."
Auditors further noted: "However, the amount was deducted directly from the bank account and was not supported by payment vouchers or any authorisation, and was not included in the expenditure on the use of goods and services."
Committee Chairperson Moses Kajwang’ sought clarification, asking: "If you cannot demonstrate the authorisation, it means that the Sh44 million was irregularly paid. Could you start with authorisation, then payment vouchers for this amount?"
In response, Governor Mung’aro said the payments were made following a court directive involving a service provider.
"The payment was paid under court order and was paid to Raindrops' company, and the workers of Raindrops were a service provider, where when they were stopped to collect revenue, they went to court and they were ordered to open an extra account and they were given orders to be able to withdraw every month," he said.
Members of the committee raised concerns over the arrangement, with Kajwang’ remarking: "This sounds like a scam! We wonder how the courts will be accomplices in this scam. From 22nd Sept, 2016? 10 years where at least Sh440 million where 218 employees were paid every month and they were rendering zero services to the county."
Further audit findings pointed to inconsistencies in cash balances. It noted: "The statement of financial position reflects the cash and cash equivalents balance of Shs372, 648, 989 as disclosed in Note 20 to the financial statements."
It further stated: "The balance includes a deposit bank account balance of Shs26, 386, 567, which recorded payments totaling Sh135, 482, 754, but whose payment records were not provided for verification."
Other senators sought clarification, with Kitui Senator Enoch Kioo stating: "They were stopped from providing the services but they continued drawing salary without intervention of the executive."
Isiolo Senator Fatuma Dullo asked: "Did the County challenge the Court order? It's a scam. Who is the owner of this company?"
Senator Samson Cheraragei added: "The public audit is very clear why was non-provision of information given as per the Public Audit Act?"
County management admitted some errors in financial recording. The response stated: "The expenditure had been erroneously accounted for under the Receiver of Revenue's financial statements."
It further clarified: "The sum of Sh135, 482, 754 refers to the difference between the opening and closing amounts, which does not reflect the correct number of payments made during the year under review, as portrayed in the audit query."
Mung’aro also said: "The correct amount paid from the deposit account during the financial year under review, as per the cash book, is the sum of Shs. 286, 811, 303.85/-."
Management added that supporting documents had been submitted, stating: "A list of payments made out of the deposit account during the year under review and copies of sample vouchers are attached."
Senator Dullo called for further scrutiny, saying: "We need a forensic audit."
The committee is expected to continue probing the matter as it seeks clarity and accountability over the audit queries.