Fresh Scandal hits Former Nairobi Governor Evans Kidero as report reveals sh 21Billion unaccounted funds

Dr Kidero addressing supporters while on a tour of Langata and Kibra Sub Counties

BY Irene Mativo

Former Nairobi Governor is on the spot over the lose of sh 21billion unaccounted for during his regime.

This was captured a damning audit report by KMPG Advisory revealing how the former Governor Evans Kidero failed to account sh 21billion.

This is a major boost a committee gazette to review and clear pending debts for goods supplied and services rendered to previous administrations, which amount to Sh60 billion.

Charles Kerich, who previously was the executive member for ICT and took over the Lands docket after the recent shuffle, said that the report will be handed over this week in a publicized event.

According to the KMPG report, the verdict is that Dr Kidero left behind a broken system that requires urgent reforms in the areas of revenue,debts,cash and bank as well as assets.

“It revealed that billions of shillings were not accounted for in the handover report when Governor Mike Sonko was assuming office,”read the report.
The queries raised have been highlighted by the Auditor General with the Assembly also probing most of the concerns raised by the audit firm.

“At least sh 21.89 billion payments were not recorded so we cannot know who was paid,”KMPG Associate Director in charge of Forensics Mark Bunyi said.

The Audit found out that the handover report under declared the county`s debt by than sh 1.5billion.

The audit report further states the former governor’s administration deleted 7,346 manual revenue collection receipt booklets from City Hall’s digital system.

“We found Sh1.5 billion more pending bills, when we checked in individual departments, different from what was in the handover report. This means the liability is more,” head of risk consulting Brian DeSouza said.

KPMG sampled 60 pending bills amounting to Sh2.54 billion during the probe. It found that supporting documents for 14 transactions amounting to Sh1.1 billion were not provided.

In 23 out of 46 sampled transactions, there was no proof of delivery by the suppliers or acknowledgement by the county government.

The KPMG’s report adds Nairobi may have lost Sh1.6 billion in land rates in 1,892 irregular adjustments in the Local Authority Integrated Financial Operations Management System.

The advisory firm’s probe also found that Kidero’s administration irregularly operated 32 bank accounts, 13 of which were not made known in the former governor’s handover report given to Sonko last year.

Five of the bank accounts had more than Sh120 million shillings in deposits during KPMG’s audit. The advisory firm says six banks that held the accounts declined to respond to its queries.

The audit has also found that Sh22.8 billion in tax, pension and other statutory obligations was not remitted to various authorities despite being deducted.

City Hall also omitted 110 vehicles from its assets list, while ushering in Sonko.