09/08/2025
AUDIT REPORT RAISES CONCERNS ABOUT THE DELAYED PROJECT COMPLETION WORTH KSH75.5 MILLION IN NYATIKE CONSTITUENCY
BY INVESTIGATIVE TEAM
Auditor General Nancy Gathungu has released a report showing the rot at the National Government Constituency Development Fund (NG-CDF) in Nyatike Constituency.
The report raises concerns about the delayed project completion worth Ksh75.5 million in Nyatike Constituency.
Review of the project implementation status report for the year revealed that various projects amounting to Ksh75,527,800 had been delayed and were at different levels/stages of implementation.
In the circumstances, value for money on projects amounting to Ksh75,527,800 could not be confirmed,” the report states.
The report further raises concerns about unsupported fuel, oil, and lubricants expenditure of Ksh450,000 that lacked proper documentation, including fuel registers, work tickets, detailed orders, local service orders, and consumption statements from contracted suppliers.
However,Members of Parliament have criticised fund account managers for the alleged misuse of National Government-Constituency Development Funds (NG-CDF), insisting they should bear full responsibility for the financial irregularities flagged by the Auditor-General.
UNSUPPORTED FUEL, OIL AND LUBRICANTS EXPENDITURE
According to the report,the statement of receipts and payments reflects use of goods and services amount of
Kshs.6,424,372 as disclosed in Note 6 to the financial statements.
Included in the amount,is fuel, oil & lubricants amount of Kshs.450,000.
However, the expenditure was not supported by fuel registers, work tickets, detailed orders, local service orders and statements of consumption from the contracted suppliers.
In this circumstance, the accuracy and fair statement of fuel, oil and lubricants amount of Kshs.450, 000 could not be confirmed.
LACK OF BURSARY QUARTERLY REPORTS
The statement of receipts and payments reflects other grants and transfers amount totalling Kshs 68,517,409 as disclosed in the financial statements.
Included in this amount are bursaries to secondary schools and tertiary institutions amounts of Kshs.40,791 ,338 and Kshs.23,41 1 ,010 respectively.
Review of the bursary payment vouchers revealed that Management did not prepare quarterly bursary reports on the effectiveness of the bursary programme together with the list of the beneficiaries.
This was contrary to Paragraph g (i & ii) page 6 & 22 of NG-CDF
Board circular referenced NGCDFB/CEO/BOARDCIRCULARS Vo.ll (021) on Guidelines for administration of Education bursary scheme requiring Fund Manager to submit quarterly reports to the Board by 12th day of the ensuing month in the format provided in Annex 4 of the circular.
DELAY IN DISBURSEMENT OF FUNDS FROM THE BOARD
Summary statement of appropriation reflects transfers from National Government Constituencies Development Fund Board amount of Kshs.214,075,373.
However, the amount of Kshs 214,075,373 includes Kshs.44,096,626 or 21o/o of total receipts being an opening balance during the year while Kshs.51,220,994 relates to funding for the financial year 2022l2023.
This is contrary to Section 39(2) of the National Government
Constituencies Development Fund Act, 201 5 which states that the disbursement of funds to the Constituency Fund account shall be effected at the beginning of the first quarter of each financial year with an initial amount equivalent to twenty-five per centum of the allocation for the constituency and thereafter the Constituency Fund account shall be replenished in three equal instalments at the beginning of the second, third and fourth quarters of the financial year.
Further Section 40(1) which stipulates that the Board shall ensure that the list of projects forwarded to it by each constituency is, upon approval, funded in accordance with the Act.
In the circumstances, the Board was in breach of the law
BUDGETARY CONTROL AND PERFORMANCE
The summary statement of appropriation reflects final receipts budget and actual amount on comparable of Kshs.272,165,873 and Kshs.214,081,334 respectively resulting in underfunding of Kshs.58,084,539 or 21o/o of the budget.
Similarly, the Fund spent a total amount of Kshs.188,818,428 against actual receipts of Kshs.214,081,334 resulting to an under-utilization of Kshs.25,662,906 or 12o/o of the actual receipts.