Senate Committee Rejects Nandi County Financial Statements, Questions Sh1 Billion Expenditure and Missing Sh62.9 Million

A dramatic session before the Senate's County Public Accounts Committee (CPAC) has plunged the Nandi County Government into fresh scrutiny after lawmakers rejected its 2024/25 financial statements, citing serious inaccuracies, missing disclosures, and unexplained financial transactions running into billions of shillings.

The committee, chaired by Senator Moses Kajwang', ruled that the financial statements submitted by the Nandi County Executive for the financial year ending June 30, 2025, failed to meet the standards required under public sector financial reporting, raising concerns about the county's financial accountability and transparency.

Following the grilling, the committee directed Nandi Governor Stephen Sang to institute administrative action against officers responsible for preparing the financial statements, describing the omissions and inconsistencies as professional negligence and a failure to discharge their statutory responsibilities.

Financial Statements Rejected

The Senate watchdog committee concluded that the county's financial statements did not present a true and fair view of Nandi County's financial position after discovering that key information relating to revenue, expenditure, liabilities, and retained funds had either been omitted or inaccurately reported.

According to the Office of the Auditor-General's report, the county failed to disclose several critical financial details, including opening bank balances, pending employee and supplier obligations, debt schedules, age analysis of outstanding liabilities, and funds held in bank accounts.

The committee noted that such omissions significantly undermined the credibility of the county's financial records and made it impossible to establish the county's actual financial standing.

Sh1 Billion Expenditure Raises Alarm

One of the biggest concerns raised during the proceedings was the county's failure to disclose expenditure amounting to approximately Sh1 billion incurred during the financial year under review.

Committee members questioned why such a significant amount was omitted from the financial statements, saying the omission violated public financial reporting standards and hindered proper oversight of public resources.

Senators warned that failure to disclose such material information could expose public funds to misuse while denying oversight institutions an accurate picture of county finances.

Governor Challenged Over Debt Claims

Governor Sang also faced tough questions after informing the committee that the county had settled part of its outstanding debt.

However, senators noted that he failed to provide documentary evidence showing the beneficiaries, payment schedules, or the exact amounts paid.

The committee maintained that without supporting documentation, the claims could not be verified.

Committee Chair Moses Kajwang' criticized the governor's responses, saying they failed to address the concerns raised by auditors.

"This Statement does not provide a true and fair view of the Nandi County Executive," Kajwang' said.

He further accused county officials of treating Senate oversight proceedings casually.

"Your responses to the issues raised by the Office of the Auditor-General do not make sense. After reviewing the financial statements, this Committee has serious doubts about the accuracy and reliability of the figures presented."

Unexplained Sh278 Million Variance

The committee also questioned an unexplained variance of Sh278 million recorded under trade and other payables.

Governor Sang and his finance team were unable to reconcile the figures or provide satisfactory explanations for the discrepancies during the hearing.

Lawmakers said the inability to account for the differences further weakened confidence in the county's financial reporting.

Missing Sh62.9 Million Sparks Fresh Questions

Another contentious issue involved Sh62.9 million recorded under refundable deposits and prepayments.

While the county's Statement of Financial Position reflected a nil balance, supporting audit schedules revealed an unreconciled variance amounting to Sh62.9 million.

The committee heard that the funds were supposed to remain ring-fenced in the County Revenue Fund but were instead withdrawn and spent.

When pressed to explain how the money had been utilized, Governor Sang reportedly failed to identify the projects financed using the funds or provide documentation tracing the expenditure.

The inability to account for the funds drew sharp criticism from committee members.

Contradictory Information

The hearing became more complicated after the county's financial statements indicated that there were no outstanding obligations owed to employees.

However, Governor Sang contradicted that position during his testimony before the committee, effectively disowning information contained in the very financial statements submitted by his administration.

Senator Kajwang' described the contradiction as evidence that the county had undermined its own financial reports.

"We cannot make headway in these proceedings if the Governor and his team keep poking holes in their own figures," he said.

"You have discredited your own financial statements because they were incorrectly prepared."

Calls for Accountability

Nandi Senator Samson Cherarkey backed the committee's findings, saying the inaccurate reporting amounted to professional negligence and violated public financial management requirements.

He argued that the absence of a schedule of pending bills made it impossible for Parliament to determine who had been paid, who remained unpaid, and the actual value of outstanding obligations.

Cherarkey urged Governor Sang to take disciplinary action against officers responsible for preparing the financial statements.

He further criticized the county for failing to submit a register showing beneficiaries of retained funds.

"There is no list of the beneficiaries owed the Sh62.9 million," he said.

"The money cannot be traced and, even during the audit, the list was never provided."

The senator added that, based on the information before the committee, he was constrained to conclude that the money may have been stolen.

Controller of Budget Approval

Governor Sang maintained that the Controller of Budget had approved the withdrawal of the Sh62.9 million following a formal requisition by the county government.

However, Senator Johnes Mwaruma, the committee's Vice Chairperson, advised the county to urgently trace the funds and ensure all legitimate beneficiaries are paid.

He cautioned that once the Controller of Budget approves the withdrawal of funds for a specific purpose, a second approval cannot be sought for the same expenditure, making accountability for the withdrawn money even more critical.

Senate Tightens Oversight

The proceedings underscore the Senate's growing determination to strengthen oversight of county governments and ensure prudent management of public resources.

With billions of shillings in question, CPAC's rejection of the financial statements marks a significant setback for the Nandi County administration and signals that county governments will face increased scrutiny over compliance with public financial reporting standards.

The committee is expected to issue further recommendations after reviewing additional documentation from the county, while pressure mounts on Governor Sang's administration to explain the discrepancies, recover unaccounted funds where necessary, and restore confidence in the county's financial management systems.