DELAYED

Absence of auditor general holds state owned firms end years results

Other notable state firms yet to announce end year results includes Kenya Revenue Authority, Kenya Pipeline Corporation among others

In Summary
  • The auditor general is responsible for the approval of audited financial results for state agencies
  • Yet, the delay witnessed was foreseen, with various stakeholders asking the government to hasten the process of appointing new office bearer.
KenGen managing director Rebecca Miano during Kengen AG last month.Photo Courtesy
KenGen managing director Rebecca Miano during Kengen AG last month.Photo Courtesy

The signing off of financial audit and results for at least 150 state corporation could take longer following delays in the appointment of a substantive auditor general.

The office fell vacant after the exit of Edward Ouko, who completed his eight-year term in August.

The auditor general is responsible for the approval of audited financial results for state agencies.

 

Yesterday, the country's power generator, Kengen, said it will delay by a month the publication of its financial results for the year ended June 30 due to the ongoing process of appointing new auditor general.

''We will not be in a position to publish audited financial results by October 31 as stipulated by the Capital Market Authority (CMA) until the appointment of the auditor general is completed by end of November,'' Kengen company secretary Paul Ndung'u said.

The state power said it had sought the approval of CMA for an extension to publish the said results on or before November 30.

Kengen's fate is likely to befall other listed state entities like Kenya Power, which last month announced a profit warning, meaning its end of year results will be 25 per cent lower compared to previous financial year.

Last week, the state pensioner,National Social Security Fund (NSSF) focused its results for the year ended June 30, 2019 on the 2017/18 audit report.

Other key state firms yet to announce end year results includes Kenya Revenue Authority and Kenya Pipeline Corporation.

 

The delay witnessed was foreseen, with various stakeholders asking the government to hasten the process of appointing new office bearer.

In July, the Institute of Certified Public Accountants of Kenya (Icpak) asked President Uhuru Kenyatta to constitute a selection panel to select a new auditor general to avert crisis once Ouko leaves office.

The accountants’ body said it was worried that a delay in the appointment of the new Auditor General will impact negatively on timely approval of audits for various books across the country.

While leaving office in August, the immediate former auditor general Edward Ouko also warned that the lack of a substantive holder of the position could hold back crucial reports that are in the final stages of the audit process.

“I am leaving office, but I do not know who will sign the reports that are due because I am not allowed to do it. This can demoralise auditors who are undertaking their duties. As we talk, there are some critical reports that are pending and unfortunately are likely to get lost,” he told journalist.