Auditor General Nancy Gathungu has exposed the loss of the revenue from exchange transactions at the near moribund Maseno University after the statement of financial performance reflected an amount of Sh89,489,431 in respect to student accommodation which includes operating lease revenues at Varsity Plaza of Shu, 824,481.
However, according to the audit report for the year ending June 30 2023, this amount was not supported with a list of facilities being leased out and the lease agreements. Sources within the university revealed, the Maseno cowboys surrounding vice chancellor Julius Nyabundi are using the leases to mint money with the VC’s blessings.
During the burial of the VC’s wife in Seme subcounty, Kisumu county in 2022, one of the cowboys when drunk silly boasted how the Varsity Plaza was a blessing in disguise as it had made them rich and the VC who since his arrival from Murang’a University to the lake city university had bid poverty goodbye. Nyabundi is said upon his arrival back at Maseno where at one time he served as DVC Administration and Finance revived his network. The VC is close to Joseph Omondi, a graduate of Kenya Methodist University an institution known for the selling degrees to politicians including former Nairobi Governor Mike Sonko.
The university recorded a deficit of Sh204,963,170 for the year and accumulated deficit of Sh560,329,197 as at June 2023.
Fear now is Maseno will not continue to sustain its services in the foreseeable future and mitigating measures must be put in place to reverse the situation.
According to the audit report, the University is therefore technically insolvent and may face financial using challenges in settling liabilities as and the when they fall due.
The cowboys used the the perimeter wall, sewerage reticulation project and sewerage project II to fleece the institution. It has emerged, the accuracy and completeness of operating lease revenues and property plant and equipment balance of ersity Sh11,824,481 and Sh6,529,646,259 respectively could not be confirmed.
Further, financial statements reflects receivables from exchange transactions amounting Sh195,809,070. However, analysis for the receivables provided for audit Kenya revealed long outstanding debts to amounting to Sh97,326,431. Further, the credit policy has not been approved by the university council.
In the circumstances, the recoverability of receivables from the pus exchange transactions amounting to Sh195,809,070 could not be confirmed.
The expenditure on use of goods and services totaling to Sh7,368,066 could not be confirmed.
Trade creditors which had been outstanding for more than 60 days amounted to Sh72,526,833. No explanation was provided as to why these creditors had not been settled as at June 30 2023.
Suspicion also surrounds Operate Bunga the Special Purposes Accounts as per cion the statement of financial position reflects an amount of Sh528,371,039 in respect to trade and other payables. It had retention fees on construction of Chancellor’s Scholarship Fund 259 of Sh3,430,000 and Siaya county advances of Sh5,000,000.
However, the deposits were held in the university’s operations accounts and not in a special purpose account meant for the specific intended purposes contrary to Section 21(2) bts of the Maseno University Act, which states that the council may place on deposit with such bank or banks as it may determine any moneys not immediately required for the purposes of the university.
In circumstances, the management was in breach of the law. Nyabundi runs the institution like a Luo community affair. None Luos in top management have been sidelined in decision making. The social relationship between the VC and Joy Akinyi the legal officer being the talk.
KenyanHour 