President Uhuru Kenyatta’s Jubilee administration has wasted over Sh14 billion, a new audit report indicates, detailing massive plunder within key ministries and government departments.
The report by Auditor General Edward Ouko also reveals that the government could not support expenditure of over Sh7.3 billion.
The report adds onto the graft and accountability crisis in Kenya, only days after a not dissimilar audit fingered the county governors for losses of billions of shillings in taxpayer money.
During the financial year 2014/2015, a number of ministries, departments, commissions and funds incurred expenditure totalling Sh14.43 billion, for which value for money could not be established.
“With no value in return, the funds spent on the expenditure of Sh14,435,690,489 is deemed to have been wasted,” Ouko concluded.
Much of the wastage, the Auditor General said, occurred in the course of procurement.
Ouko, who has been a target for bashing by top Jubilee leaders, also said, “In the absence of the records and documentation, the propriety of the expenditure of Sh7,321,277,260 could not be ascertained and therefore these public funds may not have been utilised lawfully and in an effective manner”.
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Ministry of National Treasury
On the spot in the audit is the National Treasury, headed by CS Henry Rotich, for unaccounted-for fuel worth Sh17.7 million for vehicles leased to the police.
Treasury paid Sh532.62 million for provision of fuel for the leased police service vehicles.
However, an audit inspection carried out in 18 county headquarters revealed various discrepancies between the monthly fuel invoices and the volume of fuel drawn as reflected in the motor vehicle records.
“As a result, fuel worth Sh17,736,793.46 was not properly accounted for,” the audit concludes.
From the audit, it also emerged that taxpayers coughed up a staggering Sh349 million for a non-existent fertiliser plant started in the 1970s.
Ministry of Housing
The report also indicates that 121 government housing units, both medium and high grade, in Nakuru, have changed ownership from state to private.
However, no records were provided regarding the disposal process and the amounts realised from the sale, Ouko states.
Ministry of Interior
The Auditor General also raised queries on the award of the comprehensive group life insurance cover for the National Police and Prisons Services.
The Ministry awarded the lucrative tender to one of the highest bidders at Sh1.74 billion –– almost thrice the lowest bid of Sh629 million.
In what may come to haunt former Interior Principal Secretary Monica Juma, now the PS Foreign Affairs, the Auditor said the contract was hurriedly signed – against the law.
“Contract number NPS/002/2014-2015 for Provision of comprehensive group life insurance cover for National Police and Kenya Prisons Service staff was hurriedly signed on 1 July 2015 between the Accounting Officer and the firm for a period of two years, contrary to Section 68(2) of the Public Procurement and Disposal Act, 2005, that requires a contract to be signed fourteen (14) days after notification,” the audit states.
A section of Mount Kenya politicians led by Kandara MP Alice Wahome had alleged that a firm linked to Juma’s husband, Professor Peter Kagwanja, had an interest in the insurance contract.
Kagwanja dismissed the claim.
The ministry, headed by CS Joseph Nkaissery, also had an unexplained loss of Sh1.4 billion from visa stickers.
Audit inspections of selected Kenya missions in Washington DC, London, Berlin and Pretoria indicate that blank passports worth Sh133 million were issued directly to the missions by the Department of Immigration.
However, the passports were not recorded in the missions/embassies’ counter receipt book registers and also not produced for physical audit verification.
Ministry of Foreign Affairs
A diligence check of four missions /embassies revealed loss of revenue totalling Sh137.7 million.
The Auditor reports Sh82.3 million was lost in London, Sh47.4 million in Rome, Sh6.3 million in Addis Ababa and Sh1.6 million in Washington, DC.
The audit also says there is an unexplained loss of 2,000 single-journey visa stickers at the Kenyan Embassy in Washington, DC, headed by Njeru Githae.
The audit of financial records maintained at the Kenya Embassy Berlin revealed that the mission operates three fixed-deposit bank accounts with a combined account balance of Sh38.8 million.
“The purpose and the nature of transactions relating to these accounts have not been explained, the Ministry has casually explained that the former Financial attaché disappeared with crucial financial records,” Ouko says.
Last year, Rotich accused Ouko of being unprofessional and said the annual audit exercise should not be “reduced to a ritual for tainting the integrity of public offices and a national executive committed to good governance.”
However, Rotich yesterday dismissed claims by governors that the loss of funds in the devolved units was linked to the Ifmis (the Integrated Financial Management Information System).
Rotich termed as diversionary the governors’ claims and challenged them to address the issues raised in the audit reports.
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