02/12/2025
EXPOSED: HOUSE AUDIT COMMITTEE WANTS DCI TO HASTEN INVESTIGATIONS INTO THE EMBEZZLEMENT OF KSH. 100MILLION NG-CDF FUNDS BY FORMER KAITI CONSTITUENCY MANAGER DANIEL MALUKI
Mismanagement of the National Government Constituency Development Fund (NG-CDF), involves significant issues such as a lack of proper documentation for expenditures, misuse of bursary funds for non-existent students and poor ex*****on of development projects.
Recent audits by the Auditor General have highlighted these problems, revealing that large sums of money allocated for projects and education have been unaccounted for or spent without receipts, leading to a lack of transparency and accountability.
For a better Kaiti, the Decentralized Funds Accounts Committee wants the former Kaiti Constituency NG-CDF Account Manager Daniel Maluki arrested, even as investigations into the reported embezzlement of kshs. 100 Million NG-CDF Funds in 2021/2022 continue.
The Committee chaired by Hon. (Dr.) Gideon Mulyungi last week met with the former manager, in a follow up session to determine the circumstances under which Kshs. 18,158,000 was used for irregular Payment of Allowances, and Kshs. 81,341,700 was used for irregular payment of Imprests.
According to the report of the Office of the Auditor General, the irregular imprest payments were made out of the main account to three (3) officers namely:Fund Manager, National Government Constituency Development Fund Committee Chairman and District Treasury Cashier amounting to Kshs. 34,844,700,Kshs. 31,736,000 and Kshs.14,761,000,respectively resulting to 66%of the funds irregularly spent.
“As a Fund Manager, was it within your mandate to withdraw and pay all these monies in cash, what prompted this questionable move?” Posed Hon. Mburu Kahangara, MP (Lari).
According to Mr. Maluki, who is now retired and lectures at a local University, the money in question was used for public participation to determine potential beneficiaries of CDF and NHIF. Raising concerns from the MPs how Kshs. 100 Million was used for such an activity.
“It is very clear that these people colluded to withdraw this money and defraud the public.” Said Hon. Dorothy Muthoni, MP (Meru).
Adding their voices to the calls for haste in conclusion of the ongoing investigations into the matter by the DCI, the Committee Members termed the matter as an open case of embezzlement of Public Funds.
“This issue is a clear case of open theft of Public Funds, so the relevant agencies must conclusively handle the matter, and furnish Parliament with the findings.” Stated Hon. James Koyoo MP,( Muhoroni).
Adding her voice to the discussion, Elgeyo Marakwet Woman Representative Hon. Caroline Ng’elechei urged the Committee and Parliament as a whole to set an example by taking stern action against NG-CDF Managers who misuse or steal public money.
“Such errant officers should not be walking freely among us, he should be in prison even as investigations continue and serve as an example to others.” Said Hon. Ng’elechei.
In his submissions to the MPs, the former Manager claimed that they undertook Public Participation in five separate meetings in each of the 14 locations in Kaiti Constituency.
But the Committee observed that spending Kshs. 100 Million in 70 meetings was not viable, and demanded that his accomplices and him are held accountable.
“We need to hear from the DCI how far these investigations have gone, and whatever other information the manager is withholding.” Said Hon. Martin Pepela Wanyonyi, MP (Webuye East).
The chairperson Hon. Mulyungi in his concluding remarks; directed that the Committee shall have a joint sitting with the three individuals who withdrew the money, alongside the DCI, CDF Committee Members, and the District Accountant Cashier to determine the way forward on the matter.
STALLED AND PROJECTS NOT STARTED
During the financial year ended 30 June, 2018, the Fund had an original budget of
Kshs.86,810,345 as reflected in the summary statement of appropriations for projects implementation and the budget was raised to Kshs.127,255,869 after adjustments.
However, the Fund's available records reflect a discrepancy between the original budget amount as reflected in the summary statement of appropriation of Kshs.86,810,345 and the approved budged project code list of Kshs.81,310,345 occasioning a difference of Kshs.5,500,000 that has not been explained nor reconciled.
Further, the Fund had various projects for implementation against the budget of
Kshs.86,810,345 as at 30 June, 2018 and information available and a status report reflects sixteen (16) projects totalling Kshs.18,033,032.30 that have not been completed and were behind schedule.
Further, according to the 2016 audit report ,the financial statements do not present fairly, the financial position of the National Government Constituencies Development Fund Kaiti Constituency as at 30 June 2016, and of its financial performance and its cash flows for the year then ended, in accordance with lnternational Public Sector Accounting Standard.
2021 AUDIT REPORT
LACK OF CRITERIA FOR AWARD OF BURSARIES
According to the 2021 audit report, the statement of receipts and payments and Note 7 to the financial statements reflects ' other grants and transfers of Kshs.125,051,501.
The transfer includes bursaries to Secondary Schools and Tertiary lnstitutions of Kshs.74,006,855 and Kshs.23,658,102 respectively.
However, Management did not provide the criteria for awarding bursaries as well as the amount to be allocated to students in the various institutions.
PROCUREMENT AND IMPLEMENTATION OF PROJECTS
The statement of receipts and payments and Note 6 to the financial statements reflects transfers to other government units of Kshs.6,600,000.Review of sampled projects revealed that nine (9) projects valued at Kshs. 4,500,000 were procured by the Fund Management.
However, procurement documents for the projects were not provided for audit