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EXPOSED: Kidero left no trace of Sh21 billion when leaving office


At least Sh21 billion was not accounted for by former Nairobi Governor Evans Kidero when he left office, according to an audit report by KPMG.

The damning report, which will be handed over to Governor Mike Sonko this week, revealed that Sh21.89 billion was not accounted for in the handover report when he was assuming office in August last year.

“Over Sh21.89 billion in payments were not recorded so we cannot know who was paid, and 7,346 manual revenue collection receipt booklets were also deleted from the digital system,” said KPMG Associate Director in charge of Forensics Mark Bunyi.

The auditors analysed the handover report from the former administration of Dr Kidero, and concluded that it left behind a broken system.

UNDER-DECLARED DEBTS

The audit which covered revenue, debts, cash and banking, as well as assets also found that the handover report under-declared the county’s debts by more than Sh1.5 billion.

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

The audit also revealed that the former regime irregularly opened 32 accounts in commercial banks, against the Public Finance Management Act, where 13 of the accounts were not declared in the handover report. Five of them had more than Sh120 million at the time of the audit.

When the banks were contacted, six refused to respond to queries on accounts opened in the county’s name.

TAXES

The audit also found that Sh22.8 billion in taxes was not remitted, including Pay As You Earn, and pension deductions.

The former regime also failed to declare 110 vehicles owned by the county government in the handover report.

KPMG head of Advisory East Africa Gerald Kasimu and Mr DeSouza briefed Mr Sonko on the findings last Wednesday. Mr Sonko said he would take action against those who looted county coffers. He also pledged to put in place robust measures to seal the loopholes identified in the report. “We shall get to the bottom of this matter. All the culprits will be brought to book,” said Sonko.