BREAKING: Senate Finds KSh 15 Billion Unaccounted For — Governor Mutai Fails to Answer!

Añadido: 2026-06-03

[00:00:00]But, how is it? Uh uh Chair, maybe let's start from the basic Wasira Rob.

[00:00:05]Uh I thought did you attend the training on this issue of transition from cash to accrual accounting?

[00:00:12]>> The accountant >> by the Ministry of Is it National Treasury and also uh Public Accountants standards? Uh and and were you able to attend? And I thought the appointment should have been the first instance.

[00:00:26]And you should be answering this knowing that you are a former Vice Chair of County Public Accounts in the National Assembly.

[00:00:33]>> I didn't >> So, you have a responsibility >> I didn't attend, but the the Chief Officer attended and the accountants.

[00:00:38]>> So, the Chief Officer failed to inform you to do what you should do.

[00:00:43]>> Uh you should not say failed, but I'm sorry for what happened.

[00:00:46]>> What what is Chair You know, Chair, apology has never been We only apologize in church. Not in accounting.

[00:00:55]Yeah, [snorts] because a mistake has happened.

[00:00:57]>> Yes.

[00:00:58]>> You own up. Uh you own up, but you didn't do your job. If everybody was to apologize, then we don't need to >> You you see uh in in the PFM space, you don't end at an apology. There has to be administrative action.

[00:01:11]And it has to be demonstrated. Someone should be rebuked.

[00:01:16]Someone should be retrained.

[00:01:19]Someone should be warned for not doing the right thing. So, we we don't we don't we don't consume apologies.

[00:01:27]Uh there has to be [clears throat] some evidence that administrative action was taken.

[00:01:32]Now, honorable members, we we started this just to demonstrate where the problem lies.

[00:01:36]>> Chair, Chair, kindly before you you conclude on that, you know, some of us also learning a lot of things from these appearances.

[00:01:43]And I remember the Treasury took your committee, Chair, for for training on this on this matter. And we spent two three days um Kanata was very hard on us trying to make us understand how this system works.

[00:01:59]Chair, is it discretionary that um the the officer the top officers in county governments can opt out of this kind of training? Is it a choice that they make or they are supposed to go through this?

[00:02:15]Cuz when when the when Waziri says he did not attend but the chief officer attended that then what does what does that mean?

[00:02:23]That you want to provide leadership from the top but without full information. What what what How is that? How is that tailor, chair? Is that an option that that that they have or is it mandatory?

[00:02:38]>> That entirely depends on the invite. The invitation for the training.

[00:02:43]If they say specific officers, especially the accountants, to attend because this is purely matters accounting.

[00:02:52]Then then the accountants will do.

[00:02:55]>> And now we then will be uh recommending a lot of administrative action on the officers who are supposed to have done things and they failed to do so and Kericho ended up with an adverse opinion.

[00:03:08]Having established part of the problem, let's go back now to the report.

[00:03:12]Uh let's go back to the beginning of the report and you will see how what we have just discussed relates to most of the paragraphs in the report.

[00:03:23]Auditor General your first basis for adverse opinion was unsupported opening balances.

[00:03:31]And in that observation you have also cited the lack of a transition project coordination committee report.

[00:03:37]>> Yes, Mr. Chair.

[00:03:39]>> So, Governor, if you had the project transition committee, then even this matter perhaps would not have arisen.

[00:03:45]However, it brings up very huge variances in figures.

[00:03:50]The Auditor General has cited a variance of 15.2 billion.

[00:03:56]15.2 billion variance.

[00:03:59]How can you have a variance of 15.2 billion in a financial statement prepared by a member of the Institute of Certified Public Accountants of Kenya?

[00:04:13]Because a variance means that something cannot be explained.

[00:04:20]Between the debit and credit, there's a difference of 15 billion Kenya shillings.

[00:04:26]How is that possible in Kericho with a 7 billion budget?

[00:04:31]Which Which Which qualified accountant can prepare financial statements with a variance of 15 billion?

[00:04:40]Money that Kericho cannot see in a year.

[00:04:44]Governor, does this Does this Does it bother you?

[00:04:48]>> Yeah, it does, chair. Because honestly, when you talk about 15 billion, that's our whole budget of like 3 years of Kericho County, not just 1 year.

[00:04:57]Because we receive like 7 billion. 7 + 7 that's almost like a three. And so, what the accountants did inform to me was that they after the chart, they they worked on the financial statements. But then it was already too late because the audit had closed at that time.

[00:05:13]>> No, let's Let's call a spade a spade.

[00:05:15]And we have been hard on governors because they're CEOs. But we must also we pronounce ourselves on the officers who hide behind the governor to do things that are not useful to the county.

[00:05:30]The financial statement with a variance of 15.2 billion has been signed by two CPAs.

[00:05:37]CPA Dr. George Kirer and CPA Fernandez Corier.

[00:05:42]And their ISPAK numbers are presented there. They are not prepared by a tea plucker.

[00:05:48]They are prepared by professionals.

[00:05:51]And you have a 15 billion variance.

[00:05:54]You go through the process including exit meeting.

[00:05:57]And that variance is not addressed.

[00:06:02]>> Chair.

[00:06:03]>> Uh since they what what they I was explaining to what they did told me, one of them CP Chepkwony Rere as is no longer working for the county government of Kericho.

[00:06:14]But uh Fernandez director of finance can can explain uh because he's here with us.

[00:06:21]>> Uh Fernandez is one of the signatories?

[00:06:23]>> Yes.

[00:06:24]>> Okay, where is Fernandez because we are about to make recommendations to EACC with regards to his professional competence.

[00:06:32]So, let us not judge him unheard.

[00:06:39]>> Uh thank you, honorable chair and honorable members.

[00:06:43]Um This uh this variance of 15 billion arose and and and we've captured this uh in the committee the transition committee report.

[00:06:56]That it relates to overtime the county government has been uh uh doing acquisition of assets since inception.

[00:07:05]Um this was a transition period where we are transitioning from cash. Initially, this amount was never disclosed and and and this informed uh why the government of Kenya uh transition from cash basis so that assets and liabilities are visible.

[00:07:26]The 15 billion relates to acquisitions which are done by the county government over the years since the the the time since the inception of devolution.

[00:07:36]However, um since we we are required to transition um over 3-year period.

[00:07:44]Year one, phase one, uh, it wasn't mandatory for us to disclose uh, the PPE. However, uh, that is property, uh, plant and equipment. However, uh, we were required to identify by way of, uh, assets.

[00:08:03]So, that it informs, uh, how, uh, >> I think Mr. Chairman, um, you are describing the trees. We want a description of the forest.

[00:08:18]The Auditor General says the 15.2 billion was an unexplained variance. Unexplained.

[00:08:27]I mean, you you are not supposed to explain it to the senators. You are supposed to explain it to the satisfaction of the auditors who are your professional colleagues.

[00:08:38]This is not that opportunity. In fact, this is right now, you should just be telling us why we should not uh, refer you to ISPAK for disciplinary action, and why we should not declare you unfit to hold that office.

[00:08:51]That explanation you are giving ought to have been given to the Auditor General, so that it does not form part of this report.

[00:08:58]Auditor General, did the gentleman explain, uh, say those things that he's saying?

[00:09:03]>> No, chair.

[00:09:05]>> And whatever he's saying, does it satisfy you as a professional?

[00:09:09]>> Okay. Thank you, chair.

[00:09:11]Uh, one of the reasons we have this variance again is because they failed to have that committee which should have advised them that they were not supposed to report on PPEs.

[00:09:23]The transition, if they took the the first transition, they should have not reported on the property, plant, and equipment. But, now that they reported it, the variances arose.

[00:09:38]>> So, because when you say unexplained variance of 15.2 billion, the layman