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.