The Office of the Auditor General, on Thursday, May 11, exposed how the State Department of Transport lost Ksh 1.2 billion in transactions done in two days in 2021.
Its audit report for the financial year 2021-22 detailed that the transactions were done in July 2021.
According to the report, Ksh1,295,607,925 was allegedly wired to an unnamed state corporation and Commissioner of Income Tax as of July 1 of that year.
However, the money could not be traced to the said accounts.
"A review of the Integrated Financial Management Information System (IFMIS) records revealed that payments made on July 1 and 2, 2021, totalling Kshs.1,295,607,925 paid to two companies.
"This was a State Corporation and the Commissioner of Income Tax, reflected in IFMIS records but which could not be traced to any of the accounts in the financial statements," read the statement in part.
Additionally, the auditor did not indicate why the agency was making payments to the two companies.
On the other hand, it was indicated that the department also paid a staff member totalling Ksh5,945,292 without any adequate justification.
The auditor asserted that the Ministry did not provide reasons for the payment during the audit.
"In addition, the recurrent cash book reflects a payment to general suspense of Kshs.17,000,000 on June 22, 2022. The amount, however, could not be traced to any expenditure account in the financial statements.
"In the circumstances, the accuracy, validity and completeness of the expenses of Ksh1,318,553,217 could not be confirmed," read the report in part.
The 2021 -2022 Financial report was released on May 11, even as the government prepares the 2023/24 Budget.
Notably, the transactions took place during the reigns of the Jubilee administration.
