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Audit reveals taxpayers losing millions in anti- poverty projects

Details

Published on Saturday, 02 January 2010 19:30

The taxpayer could be losing millions of shillings in grants through the Njaa Marufuku Kenya (NMK) programme, an initiative of the Government to eradicate poverty. An audit ordered by the Internal Auditor General says laxity in monitoring disbursement of funds and their use was to blame for the rot.

The report notes most groups fizzled out after they received grants contrary to their proposal, which facilitated the funding. "The groups might have misinterpreted the word ‘grant’ to mean the money was given out freely by the Government. This compromised accountability and transparency," the audit report states in its findings.

For instance in Nyanza Province, an audit conducted in Nyamira District between November 2 and 10, among 21 self-help groups that received grants from NMP since 2005, shows the taxpayer had lost more funds to individuals. The groups received grants amounting to over Sh2.6 million. And the figures are alarming in other provinces. The report affirms that supervision from the ministries of Agriculture and Livestock was not adequate after facilitation allowance was exhausted.

Diversion of funds

This is why the diversion of funds has been rampant, notes the report. The affected groups include Morara Self Help Group, Nuru Integrated self-help group and Tusaidiane Youth Group, Kiabokire Youth Group. The Morara self-help group lost Sh70,000 to a civic aspirant. At the same time an organisation which approved the groups proposal blocked it from meeting the NMK after it approved their proposal and gave them Sh369,000.

"It is evident that supervision by the ministries of Agriculture and Livestock was insufficient after facilitation funds got depleted," the report adds. The audit recommends that there is need to review the name grant and substitute it with one of transparency and accountability to public. It further recommends steps to be taken to recover funds from groups that received the same and can’t account for it.

The Nuru Integrated self-help group that had embraced commercial poultry farming disintegrated after receiving Sh120,000 in December 2007. The group shared the grant among its members contrary to their proposal, the audit revealed. It is not clear why it deposited Sh40,000 with a jua kali savings and credit cooperative society embroiled in managerial problems, the report adds.

Sharing the grant

Another group, Tusaidiane Youth Group that received Sh120,000 funds in April, 2006 for poultry keeping shared out the funds among its 10 members then dissolved. At Monfly SHG, which received Sh120,000 for tomato production in April 4, 2006, its members shared out the grant and disintegrated. Others groups on the audit list of fraudsters are Kiabokire Youth Group (Sh120,000), Egetonto Adventist Choir Women Group (Sh120,000), Mwananchi Banto Women Group(Sh120,000) among others.

When contacted, NMK Nyamira District Chairperson Constrata Rabera denied knowledge of any misappropriation of funds by the groups. "As far as I am concerned the fund has helped alleviate poverty to some level and improved food security," she said in an interview.

In Kisii District the story is the same. Local District Agriculture Officer John Katimbwa says some groups started loaning out money after they were given the grants contrary to their initial proposals. He said the groups received in excess of Sh2.5 million and an audit of the same was on in the country.