Kidero’s 32 dark web secret bank accounts that lost Sh21 billion in Nairobi

Image result for kidero 32 bank accountsFormer Nairobi Governor Evans Kidero now claims that his assets, which are under investigation, are worth Sh563 million.

This is a drastic contrast with the Sh9 billion properties the Ethics and Anti-Corruption Commission (EACC) says it is investigating.

An audit carried out by KPMG, revealed that City Hall operated secret bank accounts and may have lost up to Sh21 billion of taxpayers money under former Governor Evans Kidero.

In the report, the county government maintained a huge chunk of its cashbooks in manual format, making it impossible to ascertain the actual financial position of City Hall by the time Dr Kidero  was leaving office.

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In the audit, City Hall is said to have run and operated at least 32 bank accounts, contrary to the Public Finance Management Act, which requires all county government accounts to be opened at the Central Bank of Kenya.

The report further showed that out of the 32 accounts , thirteen were not declared during the handover report to the current Mike Sonko regime after the August 2017 election. Five of the 13 accounts had about Sh120 million as at August 31, 2017 and signatories included past county officers.
“Further, approximately Sh21 billion in payment made through these banks were not processed in IFMIS and the county did not maintain adequate accounting records to facilitate scrutiny of the related transactions,” said the audit.

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The county has been struggling to pay its creditors, who are owed Sh58 billion inherited from the previous regime.

In addition, there was no proof of delivery by the suppliers or acknowledgement by the county government in 23 out of the 46 sampled transactions.
“Where supporting documents were provided, anomalies were noted in the procurement process followed in awarding the contracts, including missing requisition memos, procurement committee minutes, quotations and contracts,” said the audit.Image result for kidero 32 bank accounts
“In certain instances where suppliers had issued delivery notes, there was no evidence that the county had received and accepted the goods or services,” it added.
The audit says City Hall used five different financial systems to manage its operations from July 1, 2011 to June 30, 2017.

These were IFMIS (Integrated Financial Management Information System) hosted by Treasury, IPPD (Integrated Payroll and Personnel Database) for staff records and payroll, eJijipay, an e-payment platform, Laifoms (a revenue receipting systems), and Jumbo Link (an online Co-operative Bank link) to making payments.Related image
The audit also identified 7,346 cash collection booklets that were issued to revenue collection attendants, but were later deleted from Laifom.
Kidero team also failed to disclose all the commitments and liabilities that the county had, only listing Sh56 billion.
“County officers could not provide supporting documents for 14 transactions amounting to Sh1.1 billion out of a sample of 60 transactions,” said the audit.
Contacted, Kidero said: “Losing Sh22 billion (the audit figure is Sh21 billion) translates to Sh5.5 billion per year or Sh460 million per month or Sh23 million per working day. Is that possible?”Related image

Dr Kidero, who is under investigations has however said that a huge chunk of the funds that went in his bank accounts between 2011 and 2013 were contributions from supporters who backed his bid for Nairobi governor.

“A mere search would reveal the owner of any immovable property within Kenya. However, EACC, while purportedly investigating me, has maliciously failed to take the most basic step in ascertaining ownership of property and, to that end, it ought to be castigated by this court.”

EACC also combed through Dr Kidero’s five bank accounts and looked at those operated by his wife Susan Mboya and the Evans Kidero Foundation. It insists that Dr Kidero’s transactions mirror those of a money launderer.

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