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Report reveals massive looting at City Hall

There has been massive looting of assets and property in Nairobi County, says a report of Auditor General Edward Ouko.

The report shows that stealing happened mainly during the transition period.

The report, submitted to the county assembly on Wednesday by the Public Accounts Committee, says that county officials failed to surrender an asset register, making it hard to determine non-current assets.

ANOMALIES

They submitted a schedule with 428 properties with 129 missing reference numbers while 234 did not have their sizes indicated.

The anomalies might have contributed to a case where three acres were hived off from nine acres on a stockyard for building materials on land LR No 209/7750/3.

The parcel was hived off while still holding council assets including an office block and building materials valued at Sh22 million.

Also, Sh500 million may have been lost in the movement of plant and equipment of ongoing infrastructure and capital projects as no documents were submitted.

CASH BOOKS DISAPPEARED

Mr Ouko’s office discovered that Nairobi had 31 accounts during the transition period out of which cash books for 12 bank accounts disappeared or were not released.

The council hid seven bank accounts casting doubt over the accuracy of the quoted balance of Sh563 million as at February 2013.

The county was also losing money in bad debts with 784 properties not having the names of those benefiting from allotment of City Council estates.

Meanwhile, Nairobi County creditors have until December 12 to beat the Transition Authority deadline to submit claims.

County Executive Committee member for Finance Gregory Mwakanongo said City Hall owed Sh40.3 billion in loans, unpaid emoluments, unremitted statutory deductions, legal fees, and claims by contractors, suppliers and consultants.

The county inherited a Sh42.3 billion debt from the defunct City Council. Governor Evans Kidero says this debt has made it hard for the county to deliver services.

The county has been trying to fight off Sh27 billion in contingent liabilities and huge penalties for non-payment from retirement benefit schemes largely blamed on the defunct County Council of Nairobi.