Governor on the Spot for Audit Non-Compliance

Busia County Governor Paul Otuoma is facing potential investigation by the Ethics and Anti-Corruption Commission (EACC) after the Senate County Public Accounts Committee (CPAC) accused him of failing to implement recommendations to discipline county workers. The workers are implicated in unsupported expenditures totaling Ksh 176 million, as highlighted in an audit report by Auditor General Nancy Gathungu.

During a CPAC session on Tuesday, October 7, 2025, Committee Chair Senator Moses Kajwang' (Homa Bay County) stated that the committee had no option but to involve the EACC due to the Governor's apparent non-compliance with earlier directives. This development follows a previous recommendation by the same committee in March 2025, which gave Governor Otuoma 60 days to take administrative action against officers who failed to provide audit documents, in line with Section 62 of the Public Audit Act.

Historical Context and Previous Directives

The audit queries stem from the 2022/2023 financial year, where the Auditor General flagged significant discrepancies. The Senate committee had, in March 2025, directed Governor Otuoma to take administrative action against county officials who failed to provide necessary documentation to auditors. He was also required to submit a status report on these actions to the Auditor General's office within 60 days of the report's adoption. However, by his appearance before the committee on Tuesday, October 7, 2025, no evidence of compliance had been provided.

Governor Otuoma, in his defense, assured the senators that disciplinary measures had been initiated against some culpable officers and that further action would be taken where warranted. This is not the first time Busia County has faced scrutiny over financial irregularities. In August 2025, the EACC launched investigations into Busia County Assembly Service Board members over allegations of abuse of office, procurement irregularities, and theft of public funds. Earlier that month, six senior Busia county officials were arrested in connection with an alleged Ksh 1.4 billion fraud involving tenders awarded to proxy companies.

Laws, Policy, and Governance

The Public Audit Act, specifically Section 62, mandates administrative action against officers who fail to provide audit documents. The Auditor General, Nancy Gathungu, has consistently emphasized the need for public institutions to implement audit recommendations to enhance accountability and service delivery. The EACC's involvement underscores the legal framework in place to combat corruption and ensure prudent management of public resources as enshrined in the Kenyan Constitution.

Stakeholders and Testimonies

Senator Moses Kajwang', the CPAC Chair, expressed the committee's frustration with the lack of action, stating that the referral to the EACC was a necessary step. The Auditor General's reports serve as critical tools for parliamentary oversight committees to ensure accountability in both national and county governments.

Evidence and Data

• Total Unsupported Expenditure: Ksh 176 million.
• Domestic Travel and Subsistence: Ksh 16.5 million lacked supporting documents.
• Foreign Travel and Subsistence: Ksh 38 million lacked supporting documents.
• Hospitality Supplies and Services: Ksh 146 million was spent, with Ksh 8.3 million in payments lacking proper supporting documents.
• Consultancy for Hospital Classification: Over Ksh 4 million was spent on a consultant to determine the classification of a hospital already listed as Level 5 (Auditor General's report for the financial year ending June 30, 2024).
• Decline in Revenue Collection: Busia County experienced a significant drop in revenue collection, including a 70% decline in physical planning and development collections between the prior year and the 2023/2024 financial year.
• Unofficial Email Accounts: The Auditor General's report for the financial year ending June 30, 2024, also revealed that Busia County was conducting official business through unofficial email accounts.

Risks and Implications

The failure to address audit queries and discipline non-compliant staff poses significant risks to public finance management and accountability in Busia County. It could lead to continued misappropriation of funds, erosion of public trust, and hinder service delivery to citizens. The involvement of the EACC signifies a potential escalation to criminal investigations, which could result in arrests and prosecutions of implicated officials.

Unknowns and Controversies

While Governor Otuoma stated that disciplinary measures had been initiated, the specifics of these actions and their effectiveness remain largely unknown. The extent of the EACC's investigation and its potential impact on the county's leadership and operations are also yet to unfold. There is also an ongoing controversy regarding a Ksh 5.2 billion audit report commissioned by Busia Senator Okiya Omtatah for the 2022/2023 financial year, which the county government has dismissed as legally flawed.

Timeline and Next Steps

• March 2025: Senate CPAC recommended Governor Otuoma take administrative action against non-compliant officers within 60 days.
• Tuesday, October 7, 2025: Governor Otuoma appeared before CPAC but failed to provide evidence of compliance, leading to the referral to EACC.
• Ongoing: EACC investigations into various financial irregularities in Busia County.

What to Watch

All eyes will be on the EACC as it commences its investigations into the Ksh 176 million audit discrepancies. The public will be keen to see if the EACC's intervention leads to concrete actions, including arrests and prosecutions, and if it will compel the Busia County government to improve its financial management and accountability. The outcome of these investigations could set a precedent for how county governments respond to audit queries and uphold financial integrity.