Senators want EACC to probe revenue theft in Trans Nzoia

Governor George Natembeya

Senators have called on the Ethics and Anti-Corruption Commission to expand its investigations in Trans Nzoia county to include revenue collection.

The move follows revelations of massive revenue leakages in the devolved unit. The development comes after Governor George Natembeya admitted to revenue losses and possible theft of county funds.

The EACC is already probing a number of questionable multi-million-shilling projects being undertaken by his administration. 

Natembeya also faced tough questions over the county’s failure to remit Sh923 million in statutory deductions for county employees in the past four years.

These include: Sh530.7 million in Pay As You Earn, Sh343.2 million to the National Social Security Fund and Sh49.6 million to the National Hospital Insurance Fund.

Appearing before the Senate County Public Accounts committee chaired by Homa Bay Senator Moses Kajwang’, Natembeya conceded that money could have been collected and pocketed by county officers.

Trans Nzoia reported raising only Sh261 million from local revenue sources (excluding hospital fees) against a target of Sh643 million, despite the Commission on Revenue Allocation estimating the county’s potential at Sh2 billion.

Even after installing a new revenue system for Sh26 million, the county still posted an under-collection of Sh22.7 million in the financial year ending June 30, 2024. Eleven revenue streams registered declines.

One glaring case was in slaughterhouse collections, where the county reported receiving just Sh38,000 for the entire year. 

With slaughter fees fixed at Sh40 per cow, this translates to only 950 cows slaughtered countywide.

“It appears people were collecting money and pocketing it. This is symptomatic of theft. We want to know who EACC should go after—the system vendor, the revenue officers, or the governor?” Kajwang’ asked.

The senators accused the county government of presiding over systemic revenue theft.

“There is no way Trans Nzoia is only collecting Sh261 million with all its wealth and potential. Money paid by mama mbogas must be accounted for. If it cannot be, kick out the crooks,” Kajwang’ said.

But the governor estimated the county’s realistic revenue potential at Sh800 million, not Sh2 billion as claimed by CRA.

“Yes, the possibility of money being collected and pocketed is there. People fight to be posted to the revenue department. That tells a lot—that there is theft,” he said.

Natembeya explained that the under-collection partly arose from the transition between systems after the vendor of the previous ZIZI revenue system left with all the data, forcing the county to start afresh.

Nandi Senator Samson Cherargei questioned whether the system change was deliberate to cover up revenue leakages.

“Are there officers who have been fired or suspended? Have you reported anyone to the EACC? It seems you are aware but have taken a backseat,” he pressed.

Natembeya acknowledged “a problem of revenue leakages” and said his government is sealing loopholes.

He told senators the county administration has since replaced casual and volunteer revenue collectors with permanent officers, rolled out a new system and begun mapping all revenue streams.

INSTANT ANALYSIS

The Trans Nzoia government has not remitted over Sh923 million in statutory deductions for county employees in the last four years. An analysis of the payroll data revealed that staff were deducted Pay As You Earn amounting to Sh530.7 million. The Senate County Public Accounts committee ordered administrative action against the officers responsible for non-remittance of statutory deductions and requested a status report within 60 days. Governor George Natembeya was taken to task over failure to follow due diligence in the construction of the county headquarters at a contract sum of Sh498.8 million.