Ethics and Anti-Corruption Commission (EACC) has issued two Circulars to all Governors and County Assembly Speakers directing reform action to address major graft loopholes.
Addressing the media, EACC Corporate Affairs and Public Communicationist Eric Ngumbi says the Commission has found major graft loopholes in almost all counties in respect to the legal requirements on the county internal audit units and management of public assets owned by the counties.
The Commission will amplify the two Circulars issued to the Governors, including the illegalities and irregularities identified.
Some of the weakness and malpractices the Commission has identified include; failure to develop policies and guidelines on asset management as provided for under Regulation 132 (3) of the Public Finance Management (County Government) Regulations, 2015.
Similarly, the commission noted that Fixed Assets Registers are not being maintained and/or updated adding that Counties maintain a list of assee which are not comprehensive as they do not capture pertinent information such as serial number, value and location of the assets.
Further EACC says, Assets are not uniquely tagged and coded for ease of identification and accountability.
Ownership documents for some assets, such as land, machinery, equipment and motor vehicles are registered in the names of the defunct Local Authorities which the Commission says has in some instances led to grabbing, encroachment and theft of the assets.
EACC notes that most Counties do not have inventory management systems. In some instances, stores control records are not updated making it difficult to monitor movement/ utilization of the assets.
The Commission says Asset Disposal Committees have not been constituted in some Counties to guide on the ‘disposal of surplus, obsolete and unserviceable assets. Further, most Counties have not prepared disposal plans resulting to deterioration in value, theft and misuse of assets.
Insurance fraud through insuring stalled and unserviceable vehicles and in other instances not insuring County asset was also cited as well as failure to undertake mechanical defects inspections to establish the extent and the nature of the repair or maintenance.
In this regard, every County Government entity is required to submit within a period of sixty (60) working days from the date of this advisory, an implementation plan for addressing the above challenges.
The work plan should also address how the counties will adhere to the various provisions relating to the establishment and operationalization of the internal audit function in the Public Finance Management Act, 2012 and related Regulations, and update the Commission on a quarterly basis on the progress made to implement the plan.
