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Former City Hall Directors On The Spot Over The Misappropriation Of Sh209M In The Nairobi County Alcoholic Control and Licensing Board



Nairobi City Hall building.

Five former City Hall officials are on the spot over allegations of unaccounted for millions of shillings in the Nairobi County Alcoholic Drinks Control and Licencing Board.

In a report tabled in the County Assembly on Tuesday, Public Accounts Committee chairperson Mwaura Chege asked the Directorate of Criminal Investigations (DCI) and the Ethics and Anti-Corruption Commission (EACC) to investigate the individuals for allegedly misappropriating public funds to the tune of Sh209 million.

The officials include a former director of the Nairobi County Alcoholic Drinks Control and Licensing Board Hesbon Agwena, Liquor Board accountant Julius Matekwa, Liquor Board Director and former Nairobi Trade Cabinet Executive Committee member Allan Igambi, former Trade Chief Officer and County Secretary Jairus Musumba and former Trade Chief Officer Mohamed Sahal.

The committee is investigating the Auditor General’s report, which containes details of cash flows for the year ended 30 June 2020.

The Auditor General report indicates receipts and payments received totalled Sh427,267,499 million but payments totalling Sh277,304,402 were not accounted for.

Supporting documents such as receipt books, cash books, payment vouchers, ledgers and supporting schedules were missing during the audit.

During its investigations, the committee found out that unsupported vouchers totalling Sh96,586,552 were not provided by the officials during their tenure in office.

The recommendations

These included Sh58 million for workshop allowances, Sh35 million for monthly allowances, and Sh3.5 million for monthly sitting allowances.

“The committee recommends the DCI and EACC take action to recover Sh96,586,552 from Allan Igambi, Dr Jairus Musumba, Mohamed Sahal, Hesbon Agwena, Julius Matekwa and same be apportioned according to the vouchers authorized by each officer during their tenure in office,” part of the recommendation from the committee reads.

The committee also stated that during investigations, the goods and services provided during the period under review to talling Sh28,147,580 could not be verified.

The management of the fund failed to provide supporting documents such as an approved procurement plan, receipt vouchers and issue vouchers for the payment of the said goods.

Also, the PAC team found out that the board irregularly spent Sh777,071 on hospital bill expenditures.

Air tickets

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The board also carried out unauthorised payments totalling Sh77,684,054 which were paid for procurement of various services and goods, and approved by unauthorized officers.

The investigations reveals the board irregularly spent Sh6,110,126 on air tickets to a company called Affordable Tours Limited, which was supposed to facilitate the travel of 30 members of Nairobi City County Sports Management Committee and rehabilitated Football Players to attend the Africa Cup of Nations in Egypt in 2019.

Also, the fund paid Sh15 million in respect of the supply of various goods and services without any supporting documents.

“Similarly, the management of the fund paid an amount totalling Sh8 million to the Ministry of Trade whose justification and support was not provided for audit review,” the report says.


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