Senators have described the Busia government as an “organised criminal enterprise,” accusing Governor Paul Otuoma’s administration of failing to account for more than Sh200 million of public funds.
The Senate County Public Accounts Committee on Tuesday exposed massive financial irregularities in the border county, saying the devolved unit is “running on autopilot.”
The watchdog panel, chaired by Homa Bay Senator Moses Kajwang, accused Otuoma of appearing detached from the daily operations of his administration.
The development comes as the Ethics and Anti-Corruption Commission investigates at least five cases of financial impropriety in the county.
They include hiring of the governor’s lounge at Sh29.9 million and questionable consultancy services for the Busia County Referral Hospital.
Others are irregular procurement of medical supplies, mismanagement of imprest worth Sh35 million and pending bills amounting to Sh1.8 billion.
According to EACC, the investigations are at various stages, with some nearing completion.
Appearing before the dreaded committee, Otuoma appeared unaware of the financial malpractices within his government.
Committee members said the governor relied heavily on his officers for responses to audit queries raised by Auditor-General Nancy Gathungu in the report for the financial year ending June 30, 2024
“It seems you’ve trusted your officers too much, and they’re letting you down. From the constant consultations, it’s clear you’re interacting with these documents for the first time today,” Kitui Senator Enock Wambua said.
The committee heard that the county government paid Sh4.9 million to a consultant for advice on whether the Busia County Referral Hospital should be classified as a Level 5 facility — despite the hospital having already been gazetted as such.
County officials defended the expenditure, claiming the hospital, though registered as a Level 5 facility, was not be operating at that level and therefore required the consultancy.
“How do you pay Sh4.9 million for advice on whether a hospital should be a Level 5 facility when it already is one? This looks like fiction,” Kajwang’ said.
“We are asking the EACC to include this matter in their investigations because, on the surface, it looks like a scam.”
A closer look at the audit report revealed a recurring trend of procurements pegged just below Sh5 million, most at Sh4.9 million, allegedly to evade the legal threshold that requires open tendering.
“This affinity with Sh4.9 million is a smoking gun. The officers are manipulating figures to create room for monkey business,” Nandi Senator Samson Cherargei said.
Further, the committee was informed that Busia county’s own-source revenue potential stands at Sh2.2 billion (excluding hospital fees), yet it only collected Sh236 million.
The audit showed a sharp and unexplained drop in revenue collection across several streams.
They include physical planning revenue fell by 50 per cent (from Sh4.9 million to Sh2.5 million), parking fees declined from Sh31 million to Sh29 million and hospital fees dropped from Sh153 million to Sh119 million.
“Are we collecting money from people and pocketing it? Because these are the symptoms?” asked Kajwang’.
“If you collect money from Mama Mboga, it should be visible. Unfortunately, that’s not the case.”
Senator Cherargei described the situation as a “classic case of an organised criminal enterprise” designed to siphon public funds from Busia residents.
The committee also questioned the county’s expenditure on domestic and foreign travel, totaling Sh35 million, for which officials failed to produce invitation letters, travel itineraries, meeting reports or other supporting documents.
The audit revealed Sh16.5 million in domestic travel expenses and Sh18.49 million for foreign trips, most of which were handled by a single firm through direct procurement without justification.
“This is not small money. The two queries on travel alone amount to more than Sh35 million — more than what the county collects from bus park fees,” Kajwang’ said.
“If recovery cannot be done, then investigations must be initiated and those responsible punished. If you don’t act on these officers, we’ll involve investigative agencies.”
Nairobi Senator Edwin Sifuna said, “Governor, you shouldn’t protect such officers because they make you look bad.”
The county government was further faulted for designating multiple revenue receivers, contrary to the law, which stipulates that the Finance CEC must appoint one receiver in writing and cannot appoint themselves.
“Who then takes responsibility in case of irregularities? This is a recipe for chaos and proof of a criminal enterprise being run at the county treasury,” Kajwang’ said.
“Governor, do you believe the money collected from Busia residents is properly reported and accounted for?”
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