Columnists
Strengthen accountability to curb county revenue leakages and fraud
Friday August 11 2023
City hall, Nairobi. FILE PHOTO | NMG
Audit findings showing City Hall failed to declare a staggering Sh18.46 billion in own-source revenue over three financial years between 2016 and 2019 raise grave concerns about the accountability mechanisms at the county governments.
The Senate County Public Accounts Committee (PAC) has called for a forensic audit of the Nairobi county government’s revenue to explain the discrepancies.
However, a forensic audit alone is insufficient. It is essential to implement robust accountability mechanisms to prevent similar occurrences in the future.
Strengthening internal controls, including regular internal audits, segregation of duties, clear policies, and automated systems, will prevent revenue leakages and fraud. These controls promote financial integrity, transparency, and shared responsibility, ensuring that revenue collection and administration processes are carried out efficiently and accountably. Implementing effective internal controls would foster public trust in the county government’s financial management, mitigate the risk of unauthorised access to revenue funds, and enable prompt identification and resolution of discrepancies.
Automation of revenue collection will ensure faster processing of information, reduce resource requirements, and lower collection costs.
Automation also enhances transparency as it reduces human involvement, and becomes a potent tool in combating corruption and reducing opportunities for both bribery and plunder.
The Senate County PAC and the office of the Auditor-General should demand that county governments introduce real-time payment systems and automated bookkeeping mechanisms.
This approach will revolutionise the revenue collection process as every transaction will be immediately reflected in the taxpayer’s statement, eliminating room for discrepancies or manipulation.
This measure will eradicate human interference and creative accounting practices that may have previously hindered the accurate reporting of revenue figures.
Service seekers can have the flexibility to make payments promptly through various digital channels, such as online portals, mobile applications, and electronic payment methods totally eliminating cash payments.
Consolidation of revenue management systems is also a crucial step for county governments to enhance their accountability mechanisms and improve revenue administration.
The writer is a development and public policy specialist.
