FKF audit reveals 14 different bank accounts, unaccounted Government grants, unauthorized withdrawals

FKF audit reveals 14 different bank accounts, unaccounted Government grants, unauthorized withdrawals
Cabinet secretary for Sports Amina Mohamed hands over the FKF inspection audit report to the chairman of FKF caretaker committee justice (RTD) Aaron Ringera.The caretaker committee has officially begun their mandate of managing the affairs of FKF

It was observed that there were un-procedural withdrawals of large amounts totaling Ksh 29,502,709 from FKF bank accounts. Most of the withdrawals were majorly made from the bank accounts that were not disclosed to the inspection committee at the time of inspection.

Michezo Afrika can authoritatively share some of the findings of the FKF Audit Committee that was tasked with looking into the financial dealings of the body governing football in Kenya.

The Committee visited FKF offices on 29th October 2021 but efforts to access offices and records did not yield much. The Committee was requested to bring their own photocopier and papers but after long deliberations and discussions, FKF accepted to photocopy a maximum of one thousand papers.

FKF however ended up availing very few documents to the Committee.

The committee again visited FKF offices on 1st November 2021 to collect copies of bank statements, cash books, bank reconciliation statement and contract documents for 52 employees employed by FKF and procurement documents.

They were only given a written statement signed by the CEO where among other things the CEO pointed out that FKF is a private entity and is therefore not subjective to Government policies and procedures.

Though the CEO noted in his statement that he had availed the documents to the committee, FKF restrictedly allowed the committee to only view the Bank statements and cash books for 6 years through FKF’s laptop in the FKF offices. The committee was also able to view hard copies of Bank reconciliation statements, employment contracts and the master payroll without carrying any copies.

14 different bank accounts

In view of the Committee’s visit to the FKF offices, an analysis of the records availed revealed that FKF has fourteen different bank accounts.

Further verification of FKF records vis-à-vis records held by the office of the Sports Registrar revealed that there was no request to the Office of the Sports Registrar confirming bona fide officials and opening such accounts as implied in Article 201 of the Constitution and the Public Finance Management Act.

This has always been the practice when sports organizations were being registered by the Registrar of Societies and all sports organizations have been and still abide by it. It was also established that most of the bank accounts were duplicated as they had the same account name serving the same purpose.

It was also established that FKF had two more accounts that were not disclosed to the Committee which were managed by an employee of FKF who was not amongst the list of signatories provided to the Committee. This was established while reviewing the bank reconciliation statements. It is also not clear whether FKF has more of such bank accounts that were not disclosed to the Committee.

Un-procedural withdrawals

It was observed that there were un-procedural withdrawals of large amounts totaling Ksh 29,502,709 from FKF bank accounts. Most of the withdrawals were majorly made from the bank accounts that were not disclosed to the inspection committee at the time of inspection.

Refund to Nick Mwendwa

There is also the question of a Ksh 8,500,000 million refund to FKF President Nick Mwendwa for a debt incurred. However, there were no documents availed in regard to when, why and how the debt had been incurred and its relationship to FKF.

Un-accounted grants from the Government of Kenya

It was established that there were neither cashbooks nor payment vouchers in regard to grants from the Ministry of Sports, Culture and Heritage for funds totaling Ksh 515, 954,356 that the FKF received between 2017 and 2021 as per the documents availed to the Committee at the time of inspection.

The Committee further reveals that there were no procurement documents availed for verification. On further enquiry, the CEO confirmed that they were not using the Public Procurement and Asset Disposal Act of 2015.

Perusal of payment vouchers revealed to the inspection Committee that goods and services were bought either in cash even when they were not of low value, or purchased directly from a supplier without competitiveness. Most direct payments related to hiring of conference facilities for purported meetings which had no supporting documents. It was also established that most purchases were done from same suppliers in many occasions.

Employee Contracts

The Committee scrutinized the FKF employment contracts availed. However,there was notable disparity as revealed in the contracts in regard to payment of employees performing the same functions with similar skills.

Further, there was no indication of FKF being an equal opportunity employer for all as positions filled by the employees were not advertised thus not competitively filled as required under Section 5 of the Employment Act No.11 of 2007 and International Labour Organization Convention No. 111 on equal pay for work of equal value and Convention 100 on discrimination.

It was also revealed that FKF incurred expenditures for breach of contracts resulting from unprocedural hiring and firing of employees/ coaches.

In addition, there were no guidelines availed for employment of FKF staff, coaches and referees. It was further established that there doesn’t exist a guiding policy framework on payment of allowances to FKF management, staff, players and National Election Committee members due to inconsistency of payments made to the same persons in the same county on different dates.

Cabinet Secretary for Sports,Culture and Heritage Amina Mohammed disbanded the Nick Mwendwa led Football Kenya Federation (FKF) on Thursday 11 November 2021, replacing it with a caretaker committee to run the Kenyan game for the next six months under the stewardship of Justice (Rtd) Aaron Ringera.

Amina then handed over the FKF inspection audit report to the chairman of FKF caretaker committee justice (RTD) Aaron Ringera on Friday 12 November 2021.