Pundit and Kadudu
Yes, the National Government can extend grants to the Counties. I believe the High Court settled this matter in the CDF case. However the grant cannot cause the county to incur unnecessary expenses. This arrangement is not exactly a grant. It also has the potential of interfering with revenue sharing by allowing the National government to reduce the amount due to counties in order to pay for the equipment.
Governors are right to demand assurances. Yes I agree that the AG (Auditor) should look in to it. Sadly we lack a key office that I keep on mentioning:
Inspector General. We can make ours truly independent and expand his role to such things as compliance with the Diversity requirements.
The reason is simple: The AG and EACC are undertakers. The IG would be a doctor.