Siaya County Assembly is at the center of a financial scandal after an audit report exposed mismanagement and irregularities amounting to Ksh. 467,120,793 in taxpayers’ funds.
The report, which scrutinized the Assembly’s financial records for the fiscal year ending June 30, 2024, uncovered cases of misclassified funds, irregular payments, and unaccounted expenditures.
One of the most glaring irregularities was the misclassification of Ksh. 6,528,600, meant for ward and general office operations, which was wrongly charged under employee compensation.
This misclassification resulted in financial reporting inaccuracies.
Additionally, the audit flagged unsupported legal service fees totaling Ksh. 9,270,180, which lacked essential documents such as tender evaluations, contracts, and user requisitions, making the legitimacy of these expenses questionable.
The report also highlighted delayed settlement of pending bills, which led to unnecessary legal costs due to court cases and penalties imposed on the Assembly for late payments to contractors.
A major concern was the payment of salaries outside the payroll system, amounting to Ksh. 47,325,407.
These payments were made manually instead of through the Integrated Payroll and Personnel Database (IPPD), raising fears of payroll fraud.
The Assembly further failed to provide supporting documents, including bank statements and agreements, to justify these deductions.
Auditor General Nancy Gathungu also raised alarm over overstaffing at the Assembly.
While the approved staff establishment stands at 112 employees, the audit found that the Assembly has 222 employees—110 more than the authorized limit—without proper justification.
Budgetary and procurement concerns were also flagged, with the Assembly receiving Ksh. 998,720,529 against an approved budget of Ksh. 1,138,827,082, resulting in a shortfall of Ksh. 140,106,553.
The Auditor General’s office noted that this budget deficit likely impacted service delivery.
Furthermore, the Assembly lacked an internal audit committee and an approved internal audit work plan, violating the Public Finance Management Act, 2012.
Summary of Financial Irregularities:
Misclassified expenditure: Ksh. 6,528,600
Unsupported legal services payments: Ksh. 9,270,180
Voided transactions in IFMIS: Ksh. 38,879,291
Unaccounted cash transfers: Ksh. 19,334,774
Irregular payments and overspending: Ksh. 393,107,948Total financial mismanagement and irregularities: Ksh. 467,120,793.
IAN BYRON