Municipality offices misappropriate 83 million birr without administrator’s approval


The Addis Ababa City Administration Audit Bureau reported three metropolitan institutions spend 83 million birr in the 2013/14 fiscal year without any approval from the city administration.
The three institutions accountable for the profligacy are the Addis Ababa Water and Sewerage Authority (AAWSA), the Addis Ababa Education Bureau, and the Addis Ababa HIV/AIDS Prevention and Control Office (AHAPCO).
AAWSA spent an extra 51.8 million birr from its approved budget, with AHAPCO expending 25.9 million birr from non-approved sources of revenue.
The report further pointed out that from the total 20 billion birr budget that was allocated for the city administration for the 2013/14 fiscal year, 993.3 million birr was returned to the coffer of the federal government after the city administration failed to use it. The audit report revealed that 19 institutions have requested for 211.1 million birr regular budget without purpose while another 15 institutions were given 722.15 million birr in capital budget which also remained unused.
The unused budget was requested by the Sanitation Administration, Immovable Properties Registration Administration agencies, and the Labor and Social Affairs Bureau that account for the overinflated budgeting of 115.3 million, 26.5 million, and 12.7 million birr, respectively.
Accounting books of the Addis Ababa City Sanitation Administration Agency showed 332.6 million birr while the Addis Ababa City Beautification, Parks and Cemetery Development Agency’s balance sheet showed 125.8 million birr untapped finance. Akaky Kaliti Sub-city and the Addis Ababa Police Commission together turned over 39.2 million unused money from their capital budget of 70 million birr, the audit report said.
Although prohibited from using money that is under the possession of any government institution except the approved budget, an unauthorized 11.4 million birr was used by eight institutions, the Ledeta Sub-city accounting for 3.6 million birr unrecognized expenditure. Flaws in financial administration like poor financial flow management, loose finance controlling systems, and not depositing daily revenue earned from transactions in bank accounts are the major reasons.
The report said the account books of 19 institutions are not balanced for 90.2 million birr budget they received in the 2014 /15 fiscal year. 
Mayor Driba Kuma seriously cautioned institutions saying that they should adhere to proper and legal budget administration and to use the allocated budget efficiently. “We can’t achieve the desired development goals unless we spend all the money properly. There is no doubt that we’ll improve our financial system but poor budget planning, outdated financial procedures, and lack of transparency are the problems that were observed in some areas’’ the Mayor said.
“Top management should take corrective action when they discover wrong financial operations.” The mayor added that his administration will take serious action on institutions that breach regular procedures and those who give way to corruption.
The Addis Ababa City Administration has also ratified a 31. 8 billion birr budget for different institutions affiliated with it for the 2015/16 fiscal year. The budget allocation shows that 16.9 billion birr is allocated for capital expenditure while 5.2 and 1.9 million birr is put aside for regular budget and reserve, respectively.
All the ten Sub Cities enjoyed a 2.2 bllion birr capital budget and 5.5 billion birr recurrent budget.
The major portion of the budget was earmarked for road construction, potable water, health, housing and infrastructure developments. Accordingly, 6 billion birr was allocated for roads, 5.5 billion birr for the supply of potable water, 3.5 billion birr for housing and infrastructure development, and 2 billion birr for the health sector.