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EACC Reveals Millions Stolen in Kajiado Revenue Collection Scam in 2015/16

Kajiado News Update

Kajiado News Update

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Ethics and Anti Corruption Commission has revealed a major scam involving theft of revenue collected from businesses which ran into millions in 2015/16 FY.

EACC Commissioner Dabar Maalim (left) hands over risk assessment report on corruption to Kajiado deputy governor Martin Moshisho (right) as MCA Julius Moipaai looks on June 26.

The scam, according to EACC, occurred during the reign of former governor David Nkedianye when casual employees are said to have been collecting revenues and not remitting to county government account.

The report which was launched by Ethics and Anti Corruption Commission titled ‘Corruption Risk Assessment’ in Kajiado on Tuesday afternoon singled out revenue collection system.

It says is a major contributor to wanton corruption wanton cases in Kajiado in 2015/16 financial year, when the county government entrusted casuals to manage its crucial revenue collection systems.

The EACC report says use of casual workers in revenue collection at the time exposed them to public coffers which most often than not could not be accounted for.

Speaking in during the launch EACC Commissioner, Dabar Maalim said since the onset of devolution there was notable progress to report though a lot still needs to be done to seal corruption loopholes.

While giving examples of what the EACC discovered in Kajiado during that financial year, Maalim said revenue collection system was not fully automated and Nkedianye’s regime was using LAIFOMS (a receipting system) to collect revenue from rent, rates and single business permits.

“However, revenue from the other sources was being collected manually using miscellaneous revenue receipt books which is a weakness that may lead to loss of revenue through non-receipting, issuance of parallel/unofficial receipts, and theft,” said Maalim.

Maalim said for some cashless revenue streams, customers banked and then presented banking slips to the billing and receipting clerks for documentation.

However, he said cashiers relied on the banking slips to issue receipts without confirming if the deposited revenue had been credited to the county account.

“This is a loophole where fake deposit slips can be receipted leading to lose of revenue. For example, a review of internal audit report; ref: CGK/IA/08 -2015/16 dated June 21st, 2016 indicated that an amount of Sh3, 586,395.00 was receipted by clerks based on fake banking,” said Maalim.

He admitted that the county revenue collection system was a major worry, but that the new regime has managed to put measures in place to address the issue by placing county staff to man revenue collection points.

He lauded the efforts made by the county administration in initiating the implementation plans outlined by the draft report the EACC had presented earlier.

“We will be following closely to see if the recommendations are followed to the letter and we expect to get feedback in the next one month,” Maalim remarked.

He further noted the irregular use of IFMIS authorization credentials by county staff as another loophole for corruption.

 He said during the said financial year it was established that some of the staff members in the IFMIS department could not access passwords assigned to them to make transactions, but the same had been secretly given out to other persons not authorized by rules of engagement to transact money.

The commissioner recommended that job descriptions for county staff be redefined for the proper placement of officers in their correct jobs.

Present at the function was the deputy governor Martin Moshisho who welcomed the timely report together with its recommendations, adding that the government is ready to act on the highlighted areas.

He intimated that over the next one month, the implementation plan will target key areas of revenue collection, procurement and human resource as a way of streamlining government operations.

Moshisho admitted that the IFMIS system has had technical challenges and called upon treasury and other stakeholders to reinforce the security options on the application.

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