Auditor General has unveiled the mismanagement and tender fraud occurring at Meru School under the leadership of Rutere Mwenda

 

The latest report from the Auditor General for the fiscal year ending 30th June 2024 has exposed significant issues related to financial mismanagement and tender irregularities that may have resulted in the loss of public funds.

In this report, Rutere is accused of mishandling school finances, particularly regarding claims that the school is owed millions of shillings in unpaid fees, despite parents being aware that the school operates under the policy of 'SERO BALANCE.' This raises questions about the origin of the alleged arrears.

There is a strong suspicion of a cartel profiting from manipulated school fee records, which could only occur with the principal's full awareness. It is imperative that the Ethics and Anti-Corruption Commission conducts a thorough investigation into the report, ensuring that those found guilty are held accountable.

Since assuming office in 2022, Rutere has struggled to meet the expectations set by his predecessor. His management approach has been deemed inadequate, characterized by threats, coercion, and intimidation towards those who express differing opinions.

According to the report, the summary of the fixed assets register indicates an increase in buildings and structures amounting to Kshs. 8,286,340, which pertains to the construction of a state-of-the-art dormitory. A review of the provided records shows that the school awarded a labor-based contract worth Kshs. 32,438,982 to a service provider.

Further verification of the documentation indicated that the service was scheduled to commence on 3 January 2022, with a completion date set for 3 January 2023, as per the approval.

The Management disbursed a total of Kshs.16,852,718 to the service provider, which corresponds to 52% as indicated in certificate numbers 1 to 14. Nevertheless, several discrepancies were noted:

i.             The complete contract document for the entire project was not available for audit review.

ii.            Consequently, the audit could not verify the tender number, contract amount, start date, duration of the contract, terms of reference, and project completion date;

iii.           The Management did not prepare or submit quarterly progress reports to the County Director of Education; thus, the status of the project could not be verified; iii.

 

A physical inspection of the school dormitory project conducted on 27 March 2025 showed that the contractor was absent from the site, and the Management failed to provide any documentation explaining the halt in the project.

 

As a result, the completion of the project may be delayed. Under these circumstances, the Management has violated legal requirements, and the expenditure of Kshs.16,852,718 on the project may not have yielded value for money.

 

During the review period, the Board of Management established an audit committee consisting of three members. However, it was noted that the Committee functioned without an internal audit work plan, and there were no audit and risk assessment reports to demonstrate their responsibilities regarding risk, control, and governance of the institution.

 

Additionally, the committee had not acted upon previous audit reports, leading to unverified evidence that follow-up on the implementation of recommendations from both internal and external audit reports was conducted. Consequently, the school was unable to identify, prevent, and mitigate potential disasters, which is essential for maintaining operational effectiveness.

 

The statement of assets and liabilities, as detailed in Note 13 of the financial statements, indicates an accounts receivable balance of Kshs.39,577,391. This balance encompasses fee arrears, other non-fee receivables, salary advances, and rent arrears amounting to Kshs.39,269,491, Kshs.100,400, Kshs.150,600, and Kshs.56,900, respectively.

 

Included in this balance is Kshs. 10,353,204, which has remained outstanding for over twenty-four (24) months. Management failed to present evidence of actions and efforts undertaken to recover the funds, even though the school has provided the services.

 

Furthermore, the management policy regarding debtors was not made available for audit. Given these circumstances, the accuracy and completeness of the debtors' balance of Kshs. 10,353,204 could not be verified.