List Of Shame: Auditor Exposes MPs Unable To Account For CDF Bursaries in Millions

Auditor General Nancy Gathungu has once again questioned how several constituencies spent bursaries amounting to millions of shillings that are not accounted for.

In a report for the year ending June 2024, Gathungu said the constituencies had failed to provide crucial documents to support payments sent to secondary schools and tertiary institutions.

A review of more than 50 National Government-Constituencies Development Fund (NG-CDF) payments unearthed bursaries issued but with no crucial information to auditors, such as a list of beneficiaries in secondary schools, cheque dispatch registers and acknowledgement letters from recipient schools.

Among the constituencies are Mbeere South represented by Bernard Muriuki, Balambala (Shurie Abdi), Baringo North (Joseph Makilap), Bomachoge Chache (Alfah Miruka), Rongai (Paul Kibet), Samburu West (Naisula Lesuuda), Lafey (Abdirahman Mohamed), Mandera West (Adan Haji), Mandera South (Haro Abdul), Nyakach (Aduma Owuor), Emurua Dikirr (Johana Ngeno) and Baringo Central (Joshua Kandie).

In Mbeere South, for instance, the report queries over Ksh56.7 million spent on bursaries, Ksh35 million of which went to secondary schools and Ksh21.7 million to tertiary institutions.

The list of applicants, as well as acknowledgement letters and receipts for bursaries, were not provided for audit, contrary to Regulation 104(1) of the Public Finance Management (National Government) Regulations, 20’15.

“In the circumstances, the accuracy, completeness and value for money in the bursaries amount of Sh56,771,223 could not be confirmed,” the report says.

In Baringo Central, the report flags Sh61.8 million in bursary payments, Sh36.5 million of which went to secondary schools and Sh25.3 million to tertiary institutions.

The report notes that the bursaries were not supported by acknowledgement receipts to confirm that the money was credited to the school or college fees accounts for the targeted beneficiaries as required by guidelines from the NGCDF Board in the circular N-CDFB/CEO/BOARD CIRCULARS VOL ll (021) of 1B June, 2020.

“It was not possible to confirm whether the bursaries were applied for the intended purpose,” the report says.

“In the circumstances, the propriety of bursary-secondary schools and bursary- tertiary institutions amounts of Sh36,537,302 and Sh25,329,679 respectively could not be confirmed.

“In addition, Management was in breach of the law.”

Unsupported grants

In Balambala, the report cites unsupported grants amounting to Sh4.5 million that was not accompanied by acknowledgement receipts and student fees statements from the institutions that received the bursaries.

In Baringo North, bursaries to secondary schools amounting to Sh40.3 million could not be confirmed as ward vetting committee minutes, acknowledgments by schools, and application forms were not provided for audit

In Bomachoge Chache, the report says out of Sh85 million under grants and other transfers, bursaries to secondary schools worth Sh56.1 million differs from the  total Sh39.8 million reflected on the list of beneficiaries for secondary schools, resulting in unreconciled variance of Sh16.3 million.

The report also says the list of individual beneficiaries for tertiary institutions amounting to Sh19.3 million was not provided for audit, while acknowledgement letters from recipient secondary schools and tertiary institutions were also not provided for audit.

“In the circumstances, the accuracy, completeness and authenticity of the bursary disbursements totalling Sh85,041,749 could not be confirmed,” the report says

In Rongai, the report highlights bursaries totalling Sh65.5 million that could not be confirmed as the disbursements were not supported by acknowledgement receipts.

In Samburu West, a total of Sh47.2 million was disbursed to beneficiaries – Sh32,240,074 to secondary schools and Sh15,000,000 to tertiary institutions – but the payments were not supported with acknowledgement letters from beneficiary institutions and thus the accuracy and completeness of the figures could not be confirmed.

In Lafey, the report says bursary payments amounting to Sh47.5 million – Sh7.5 million to secondary schools and Sh40 million to tertiary institutions – could not be confirmed as the payments were not acknowledged through official receipts or acknowledgement letters from the recipient institutions.

In addition, the cheque dispatch register was not maintained to record cheques issued to the beneficiaries.

In Mandera West, bursary payments amounting to Sh1,725,000 for tertiary institutions were not acknowledged through official receipts or acknowledgement letters from the beneficiary institutions.

Reads the report: “In the circumstances, the accuracy and completeness of bursary payments amounting to Sh1,725,000 could not be confirmed.”

Official receipts

In Mandera South, the report says that bursary payments amounting to Sh1.3 million for tertiary institutions were not acknowledged through official receipts or acknowledgement letters from the beneficiary institutions.

Further, NGCDF managers did not provide bursary subcommittee minutes and lists of all the applicants who were vetted.

In Nyakach, the report cites unsupported bursaries for tertiary institutions amounting to Sh507,000, including two technical and vocational centres that did not keep proper records, thus making it impossible to get students’ statements and balances.

The report also mentions unsupported bursaries paid to 60 schools, including a special-needs one, amounting to Sh904,000, with payment vouchers and expenditure returns from the institutions not provided for audit.

Of the 60 schools, 40 did not fall under the special-needs category but received a total of Ksh412,000 with no justification for the payments