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Nairobi MCAs to probe mystery cash transfers

An assembly committee has been asked to probe illegal transfers of funds from a county account to unknown people.

Speaker Alex ole Magelo on Wednesday gave Public Accounts Committee Chairman Robert Mbatia two weeks to find out who received the money and the purpose of the transfer.

This followed revelations during committee hearings on Tuesday that Sh70 million was moved from the Nairobi County Emergency Fund through Citibank to unknown recipients last September.

Another Sh5 million and Sh1 million was transferred to separate accounts, believed to be foreign, in a similar manner.

Mr Mbatia told journalists that the committee had asked the Kenya National Audit Office to carry out a forensic audit and a report is expected in two weeks.


He said the committee will summon the signatories to the account to explain the transfers.

County Secretary Lillian Ndegwa, Head of Treasury Steve Osiro and Chief Finance officer Jimmy Kiamba are the signatories.

The committee discovered the illegal transfers during a scrutiny of bank statements from the County Executive.

“When we questioned County Finance Executive Gregory Mwakanongo, he did not know of the transactions and appeared shocked,” Mr Mbatia said.

The emergency fund account is apparently operating illegally as it was opened unilaterally on August 31, 2013.

County Assembly members accused the officials of siphoning public funds through secret accounts.



Meanwhile, Speaker Magelo complained that the county executive had ignored letters requesting funds to run the assembly.

He said in January the assembly was only given Sh80 million for salaries and operations even though the county received a whopping Sh2 billion in local revenues.

“By June, of the Sh1.9 billion we have budgeted, we will only have received Sh1.2 billion. So I wonder where the rest will go to and who will pocket it,” he said.

He accused Mr Mwakanongo of failing to remit a percentage of total revenue based on the assembly budget, saying several attempts to engage him were ignored.