Ngilu summoned over funds use at Kitui textile firm

A Senate watchdog committee has summoned former Kitui governor Charity Ngilu to explain the use of funds at the Kitui County Textile Centre.

This follows an audit report by Auditor General Nancy Gathungu for the fiscal years 2019 and 2022 that has raised financial queries.

The revelations emerged during the questioning of Governor Julius Malombe by the Senate County Public Investments and Special Funds Committee.

The panel, chaired by Vihiga Senator Godfrey Osotsi, observed that the centre had serious management and financial challenges, that negatively affected its operations, financial health and sustainability.

Subsequently, the committee resolved to issue summons to Ngilu, former top management officials and other officers who signed financial statements for the centre during the period under review.

Ngilu, who served as governor for five years between 2017 and 2022, will now appear before the committee next month to answer the audit queries.

The committee exercised provisions of Article 125 of the constitution and sections 18 and 20 of the Parliamentary (Powers and Privileges) Act, 2017.

The Article gives Parliament and its committees the power to summon any person to appear before it for the purpose of giving evidence or providing information.

“The committee hereby resolves to issue summons pursuant to Article 125 of the constitution to the former governor of Kitui county Charity Ngilu, the former top management officials and all the officials who signed financial statements of the Kitui County Textile Centre in the financial years 2019/2020, 2020/2021 and 2021/2022,” Osotsi said.

The committee also directed that the Ethics and Anti-corruption Commission liaison officer attached to the committee and a senior person involved in investigations at EACC be present during the September meeting.

The committee directed Malombe to submit a report on the status of the textile centre by the board of directors and any other relevant information within three days from the date of the meeting.

He is also needed to submit names and contact details of the board of directors who were responsible for the centre during the years under review.

In addition, he will provide names and contact details for the people who signed the financial statements for the period.

“The governor should also submit to the committee names and contact details of the two Kitui county chief officers who sat on the board as mandatory and alternative signatories of the centre’s bank accounts. This should be done within three days from the date of this meeting,” Osotsi said.

In the report for the year ending June 2022, the auditor flagged anomalies in the payment of Sh49.1 million as salaries and wages to casual employees. 

The auditor questioned the rates applied.

In the previous fiscal year, the centre was flagged over Sh56.7 million in irregular payment of casual wages where the casual workers signed no contracts.

Further, the rates applied for the wages did not agree with those recommended by the Salaries and Remuneration Commission.

There were cases of casual workers being engaged continuously for more than three months contrary to Section 37 of the Employment Act, 2007.

“There was no updated muster roll for determination of the number of days worked for purposes of daily wage payments,” the report states.

The firm is also reeling with current liabilities of Sh90.7 million.

This is an increase from Sh68 million from the previous year amid decrease in revenue from Sh203 million in 2021 to Sh78.6 million in 2021.

Further, there were no details of cheque numbers, date of payment and accounts where payments were charged.

Therefore, it is not possible to trace the payments to the cashbook and to the bank statements.

“In the circumstances, the centre is exposed to loss due lack of proper controls over the payment system.”