The Nairobi County Assembly exists for spending 12.3 million shillings to lease MCA offices without proof of rental documents.
The Auditor-General revealed that rental costs were not supported by lease agreements signed between the county legislature and homeowners.
According to the report, Auditor General Nancy Gathungu reported payments amounting to 14.7 million shillings made by the county legislature for the office lease.
The report revealed that the conference spent 570 million shillings on goods and services during the financial year ended June 30, 2019, as well as 14.7 million shillings on leasing productive assets.
However, an audit of the records revealed that payments were not supported by lease agreements signed between the county legislature and homeowners.
“In that case, it was not clear whether the expenditure of 12.3 million shillings was a fair payment in public funds,” the report reads in part.
A large number of Nairobi MCAs operate from rented offices. However, the conference has been working on ways to end this arrangement, and the conference is expected to spend more than 1.6 billion shillings in the current financial year to establish and upgrade MCAs offices.
As part of a new plan to improve the infrastructure of the conference, 1.18 billion shillings will go to the administrative area for the elected members of the county assembly as well as the leadership offices of the conference.
Another Sh191 million will be spent on the renovation and construction of 30 conference hall offices, which are said to be in poor condition. This will be done in phases.
The remaining 300 million shillings have been spent on ICT infrastructure, furniture and other equipment.
Construction of the new offices to be placed in the 500 million shilling administrative unit was supposed to start in 2019, but the project was postponed due to unavailability of land earmarked for the project.
The project was supposed to be done in phases, the first phase was planned for the financial year ending June 30, 2019.
A new barrier was to be built in the parking area between National Road and City Hall Way from this year with the aim of providing working space for 39 neighborhood representatives appointed by the chairpersons of various parliamentary committees.
The meeting also relied on a lease contract to appoint President Benson Mutura who is eligible for Sh150,000 per month lease.