The Senate Committee on County Public Investment and Special Funds issued an ultimatum to Nakuru Governor Susan Kihika on Tuesday, March 12, regarding irregular payments.
The Governor has been given a 30-day ultimatum to recover Ksh6 million paid to Members of the County Assembly and other staff members if the funds are not satisfactorily accounted for.
According to the committee, the money was disbursed as allowances from the Emergency Fund during the 2019/2020 financial year.
"The Committee demanded a satisfactory explanation within 30 days, failing which the governor will be required to initiate a recovery process for the irregular payments totalling Ksh6,048,600," read part of a statement from Parliament.
Governor Kihika is also expected to explain gift vouchers and food pack expenditures drawn from the Emergency Fund in the 2020/21 financial year.
In the meeting between the committee and the governor, Kihika focused on the review of the Auditor-General's reports on the Nakuru County Emergency Fund and Nakuru Bursary Fund covering the fiscal years from 2020 to 2022.
According to the report, there were significant deficiencies in financial management and controls in the county.
Despite the matters being raised, the Auditor General was dissatisfied with the explanations provided for the glaring gaps adding that the county lacks internal audit functions.
On the matter, Kihika acknowledged the discrepancies and vowed to address them in the next audit.
Besides recovering the irregular payments, another directive given by the committee to account for the discrepancies was to the County Executive Committee Member (CECM) for Finance to establish effective internal control systems and policies that align with legal requirements within 60 days.
"The governor through the CECM for Finance, is responsible for ensuring accurate financial record-keeping by fund administrators in accordance with the Public Finance Management Act, 2012," read part of the statement.
CECM will also be required to provide evidence of implementation which must be submitted to the Auditor General.
Additionally, the committee directed full compliance with the Public Sector Accounting Standards Board (PSASB) template when preparing annual reports and financial statements.
Conclusively, the committee asked the county officials to ensure that all future-related expenditures receive proper legal approval.
Officials were also advised on the importance of timely allocation of funds to prevent the disruption of planned activities, thus ensuring the smooth execution of projects and initiatives.
