Fourth Phase President Jakaya Kikwete’s directive to local authorities to construct school laboratories across the country impacted negatively on the planned activities of many district councils, it has been revealed.
According to the 2014/15 audit report of the CAG, some Sh12.8 billion were diverted by the councils to implement the presidential order.
The CAG said spending funds set aside for certain projects on unplanned activities denied the targeted beneficiaries from realising the benefits that were intended for them.
According to the CAG, his auditing team revealed the negative impacts in 38 councils, which were picked as a sample with diverted fund.
The CAG recommended that the government must avoid ad-hoc activities that may affect the implementation of planned projects in the LGAs.
Mr Assad said every charge of expenditure and item of income is required to be classified strictly in accordance with the details of the approved budget, and the voted funds to be applied only to the purpose for which they were intended for.
He said the expenditure is in accordance with Order 23(1) of the LGAs financial memorandum of 2009. “During the 2014/15 fiscal year, the LGAs were directed by the government to construct laboratories at all government owned secondary schools. The directive meant LGAs were supposed to divert the fund to unplanned activities,” said Mr Assad.
He added that in order for the LGAs to adhere to the directive, they diverted funds amounting Sh11.4 billion from various sources to implement the directive. He said the LGAs also diverted Sh1.4 billion to meet other unbudgeted activities, and thus making a total of diverted fund to amount to Sh12.8 billion.
According to the CAG report, in order to meet the Head of State’s directive, Magu District commission and Mwanza regional consultative committee (CC) decided to solicit a loan of Sh302.5 million and Sh1.3 billion respectively from CRDB bank to fulfill the directives. However, the CAG said that the loan was requested and secured without approval of the minister responsible for LGAs.
“The Mwanza regional CC and Magu DC were supposed to seek approval from minister responsible for LGAs, who was also supposed to consult minister for Finance,” said the CAG. He added that the money was obtained contrary to Order 51 (2) of the Local Government Financial Memorandum, 2009.
According to the CAG, the LGAs must always seek retrospective approval of the amount diverted to meet unplanned activities.
He said some development projects in various councils were partially implemented.