A Senate committee has initiated a forensic audit into the Sh168 million expenditure by the Kitui County Textile Centre (KICOTEC) for the 2019-2020 financial year, amid allegations of forgery and missing documentation.
The Public Investments Committee, led by Senator Godfrey Osotsi, has tasked the Auditor General and the Parliamentary Budget Office with analyzing bank statements to unravel the financial inconsistencies.
This follows Kitui Governor Julius Malombe’s disclosure that key supporting documents for expenditures, including Sh48 million used for construction, are untraceable.
KICOTEC, established in 2018 under former Governor Charity Ngilu, was initially celebrated as a groundbreaking initiative for job creation and economic development.
However, its financial operations have been marred by controversies.
Auditor General reports flagged numerous irregularities during Ngilu’s administration, including unauthorized payments to casual workers, unexplained changes in bank account signatories, and missing payment vouchers.
These issues have led to significant operational challenges, such as delayed salaries and unpaid bills, which have strained KICOTEC’s sustainability despite its reported revenue of Sh614 million during its peak years.
Senator Enock Wambua voiced frustrations over the lack of accountability, urging the committee to treat KICOTEC’s financial records as a potential “crime scene.” Attempts to trace expenditures through the Integrated Financial Management Information System (IFMIS) have been unsuccessful, further complicating efforts to validate payments and asset transfers.
Governor Malombe revealed that a task force he commissioned found only Sh440,000 remaining in KICOTEC’s accounts, despite the center generating substantial income during its operations.
The committee has also summoned Ngilu, alongside KICOTEC’s former board members, to explain the discrepancies.
Allegations of mismanagement include reports of excessive budget allocations and questions about why the factory, despite its profit generation, relied heavily on public funds.
Additionally, KICOTEC’s failure to meet obligations such as salary payments and operational costs has called its financial prudence into question.
This audit underscores broader concerns about financial oversight in county government projects.
It highlights the need for transparency and robust systems to ensure accountability in public investments, particularly for initiatives funded through taxpayer money.
The findings of this investigation are expected to shed light on systemic weaknesses in the governance of county enterprises and set a precedent for handling similar cases in the future.
