The Senate County Public Investment and Special Funds Committee condemned Trans Nzoia Governor George Natembeya over the Auditor General’s disclaimer on the financial statements of Kitale Referral Hospital for the 2023/2024 fiscal year.
The Auditor General was unable to form an opinion due to severe irregularities, including missing financial records from the 2021/22 and 2022/23 financial years leaving no reliable opening balances for the audit.
Committee Chair Senator Godfrey Osotsi (Vihiga) expressed his frustration during the session, stating, “Governor, the law is very clear that public funds must be properly accounted for.
The Auditor General could not even form an opinion on these financial statements.
This is not just an anomaly, it is an indictment of your administration’s incompetence in financial management. We demand full accountability.”
Trans Nzoia Senator Allan Chesang echoed the concerns, questioning the absence of critical financial documents.
“What exactly is the work of your finance department if such vital records are missing?
This is beyond negligence; it is a serious governance failure,” he remarked, also calling into question the role of the hospital board in the unfolding crisis.
The report highlighted numerous financial anomalies, including the lack of a general ledger and trial balance, discrepancies in cash balances, poorly maintained cashbooks, undisclosed inventory and failure to follow the approved financial reporting template.
These issues painted a troubling picture of systemic mismanagement within the county’s financial administration.
Further scrutiny revealed the unauthorized withdrawal of Sh9.4 million from the hospital’s revenue account to fund participation in the 2023 Devolution Conference without board approval.
Senator William Kisang voiced his alarm, stating, “Chair, I think I’ll also request that you invite the EACC and call for a special audit.
I don’t understand how we can say we cannot find opening balances for those accounts.”
His comments underscored broader concerns about transparency and accountability.
Natembeya admitted to the unauthorized withdrawal but defended his actions.
“We acknowledge the borrowing because we did not have a budget for the Devolution Conference.
We were required to participate and that is why we borrowed.
However, I assure the committee that this money will be refunded within the stipulated timeframe.”
Senator Raphael Chimera dismissed the governor’s defense.
“Governor, with all due respect, if your county cannot even provide basic financial statements, how can we trust that any public funds are being properly accounted for?
This is gross financial negligence. The people of Trans Nzoia deserve better.”
The committee directed Governor Natembeya’s administration to submit all requested documentation, including certified bank statements and a detailed explanation of the missing records, within seven days.
Osotsi concluded the session with a stern warning: “This committee will not tolerate financial mismanagement and blatant disregard for transparency.
We expect substantial improvements in the county’s financial practices and full compliance with public finance laws in the next audit period.”
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