EACC identifies 11 systemic loopholes hindering county revenue generation.
The Ethics and anti- corruption commission, EACC identifies 11 systemic loopholes hindering county revenue generation.
EACC stated,”Following corruption risk assessments undertaken in 26 county governments, EACC has identified 11 systemic loopholes and weaknesses that hinder effective revenue collection and administration.”
Some of the weaknesses or malpractices pointed out by the corruption watchdog include; Failure to legislate on revenue administration and revenue streams.
Another cause is Varying fees and charges levied for various services without the backing of an act of parliament or county legislation as required in section 159 of the PFM act, 2012.
EACC also expressed that Most counties have not yet developed and created databases of traders and businesses operating within the counties to guide in revenue collection.
Additionally, EACC stated that revenue collectors especially those in open areas such as markets and car parks are not easily identifiable.
Other concerns include; Spending of revenue at source, unwarranted delays in banking of revenue, Use of manual systems for collection of revenue and revenue collection in some counties is done by unauthorised personnel.
The anti- corruption commission stated that they will take the following steps as caution;
County governments where EACC has undertaken systems review should implement the ensuing reform recommendations including automation of revenue management processes. This would mitigate the challenges of ghost workers, theft of public funds and fraudulent pending bills.
EACC undertakes corruption risk assessment in public institutions to identify and seal loopholes that encourage corruption and unethical practices. This is part of the Commission’s initiatives to proactively prevent corruption through strengthening of internal controls.