Serious concerns have emerged regarding the procurement of an automated and integrated revenue management system, allegations of nepotism, and financial mismanagement at the Kisumu Revenue Board.
Key questions directed at both the board and the county government include:
- What were the specific terms of contract CGK/FIN/PROC AWD/Vol/1 for the automated and integrated revenue management system for the financial year 2023/24, and was the contract honored?
- Why did the Revenue Board purchase 400 Android phones instead of the 400 POS devices that were contracted, and why were only 350 phones and SIM cards delivered upon inspection?
- Why wasn’t due diligence conducted during the contract award, after three companies—Safaricom PLC, WebTribe Ltd, and Craft Silicon Ltd—submitted tenders?
- Did Safaricom PLC provide the performance security bond when signing the tender on 29/09/2023? (Ref: Contract No. CGK/FIN/PROC/AwD/Vol 1/1)
- Did Safaricom PLC sign the Service Level Agreement (SLA) and the Annual Maintenance Contract (AMC)?
- Is it true that the citizen access channel via WhatsApp, which was stipulated in the contract, is not integrated into the system, and if so, why?
- Who conducted the feasibility study, who approved the design, and who oversaw the implementation of the system?
- Where is the report on the feasibility study, and did the acquired system address the gaps in the previous one?
- Have the internal auditors been able to log in and monitor transactions? Do they have login rights to access reports and credentials?
- Why is the board seeking an independent audit when the Kenya National Audit Office and the county internal audit are the only authorized bodies for auditing government institutions?
- Is it true that the seven designated revenue streams are not fully integrated into the system, as stipulated in the contract?
- Why did the board hire new staff to replace experienced employees, many of whom were trained on the job, and instead fill sensitive positions with new employees related to board members?
Further questions have been raised about the Ksh 60 million payment made by the county government for this tender and whether it provided value for money. When contacted via WhatsApp for comment, Board Chairman Dr. Hezron McOmbewa responded, "Employment is done by the Public Service Board, not the Revenue Board," adding that board members serve part-time and are responsible for governance and oversight, while daily operations are managed by the secretariat, headed by the CEO.
A report by the Western Insight Newspaper revealed that several whistleblower employees had informed county leadership of what they described as "blatant corruption" within the facility. These employees, who spoke anonymously, noted discrepancies between actual collections and reconciliations.
“We have been raising concerns about transactions and system issues with the board daily, but no action was taken. We decided to pass a coded message to the Governor and his team, and we’re pleased to see some action being taken,” said one of the employees.
They claimed the financial reports and reconciliations did not match actual revenue collections, which is why employees refused to sign the reports.
Dr. McOmbewa denied the allegations, claiming that the accusations came from cartels that had been benefitting financially from the county and were now fighting back. He further alleged that some disgruntled staff members involved in printing fake receipts were behind the propaganda and blackmail.
In response, Steve Ogolo, a board member and Chairman of the Revenue Enhancement Committee, stated that the board is investigating the allegations and has sent 26 employees on annual leave to allow for an audit. He denied that the board was involved in the alleged pilferage, adding that revenue collection had increased from Ksh 1.1 billion to Ksh 1.5 billion in the past year.
Ogolo also admitted that the Governor had raised concerns about financial mismanagement, which the board is addressing.
“When we took office a year ago, the county revenue system had been switched off by the previous service provider, and the county was struggling to collect revenue. We implemented a new system, provided by Safaricom, which came into effect on December 15, 2023,” he said.
Ogolo acknowledged challenges during the system transition, including resistance from some employees who preferred manual cash collection. “Some employees resisted the new system due to either a lack of knowledge or preference for manual collections. However, we’ve initiated job training to address these issues,” he said.
In light of the fraud allegations, Ogolo emphasized that measures are being taken to verify the claims and address any gaps in the system. After discussions with the Governor and the County Executive Committee (CEC) for Finance, it was agreed that an external system audit be conducted. Safaricom was also asked to conduct its own audit and submit a report to the county government for further action.