• Gathungu’s report that raised questions over the contracts by previous administrations.
• Wamatangi told the committee the three firms signed an ‘opaque’ agreement with the Kiambu government.
Image: FILE
A Senate committee wants the anti-graft agency to probe three firms contracted by the Kiambu government to collect revenue.
This comes amid concerns the county could have lost more than Sh10 billion in own source revenue between 2014 and 2022.
The revelation stemmed from Auditor General Nancy Gathungu’s report that raised questions over the contracts by previous administrations.
The details emerged during the questioning of Governor Kimani Wamatangi by the Senate County Public Accounts Committee on Monday.
Appearing before the panel chaired by Homa Bay Senator Moses Kajwang’, Wamatangi exposed how the county government may have lost close to Sh10 billion.
This happened through alleged interference with the systems of three revenue collection firms contracted by his predecessors.
Wamatangi told the committee the three firms signed an ‘opaque’ agreement with the Kiambu government to collect revenue for the county.
Despite the county paying for the development and use of the systems, it never got to own the systems as they remained as properties of the contractors, he said.
“Most of the systems were not intended to help the county collect revenue but to help the owners and beneficiaries of the systems to siphon money from the county. That is my conviction,” Wamatangi said.
Further, the governor revealed the systems were not only faulty and erroneous but were intentionally calibrated not to give accurate results.
He said the use of the systems saw the county government fail to meet its revenue target, with collections oscillating between Sh2.8 billion and Sh2.9 billion.
He said the county’s highest collection was Sh3.1 billion, despite the devolved unit having a potential of realising Sh13.5 billion.
“There is no way there would have been correct reports when the main system of collecting the revenue is doctored to give incorrect results,” the governor said.
“We have since increased our internal revenue by almost 100 per cent from Sh2.9 billion to Sh4.6 billion by bringing in a new system and staff.”
Kajwang’ invited the Ethics and Anti-Corruption Commission to investigate the possible massive loss of revenue.
“We will be failing Kiambu people if we do not do justice to that matter. EACC let us keep an interest in this matter because it could be a quick win in dealing with people who have been fleecing the public,” Kajwang’ said.
“This is money that comes from hustlers. They were stealing from mama mboga, slaughterhouses and traders. It is completely unacceptable.”
Nandi Senator Samson Cherargei said the owners of the three firms should be summoned to get to know what they were doing at the county government.
“It looks like it was a well-organised fraud that they have carried out since 2014 until Governor Wamatangi came in and terminated the contracts,” he said.
“If there are officers within your administration who are culpable then we can direct them to be surcharged to refund the money that was lost through the companies.”
Wamatangi told the panel his administration has terminated engagement with the three companies.
He said his administration has installed a new enterprise resource planning system for managing services and finances of the county.
“The system belongs fully to the county and no one can come and switch it off or blackmail the county again based on data held in the system or processes,” the governor said.
“The new system will minimise human interaction with money. If you make any payment, the system reverts confirming the transaction is complete. IT does this in real-time.”
Wamatangi said the three companies took the county government to court demanding payment of Sh700 million.
“They have billed the county government from 2014 claiming Sh700 million yet they have a contract dated 2021. How does somebody who has renewed a contract in 2021 bill you for services delivered in 2014?" he posed.