Railway Fund fails to account for Sh230.2 billion, says Ouko

Auditor-General Edward Ouko defending his suit during a press briefing at the anniversary towers on Thursday March 16th, 2017./Photo Victor Imboto
Auditor-General Edward Ouko defending his suit during a press briefing at the anniversary towers on Thursday March 16th, 2017./Photo Victor Imboto

The Railway Development Levy Fund could not explain how Sh230.2 billion was spent in the financial and assets statements of June 30, 2015.

Auditor General Edward Ouko has queried how unaccounted for billions of taxpayers money was spent.

In his report tabled in Parliament, Ouko questioned how Sh19.2 billion was transferred to the State Department of Transport without availing minutes of meetings of the Fund’s advisory committee that gave the approval.

account shut

The report also shows that on October 2, 2014, the National Treasury closed the Fund’s Central Bank account that had a balance of Sh6.5 billion.

No documents were provided to show where the money was transferred to.

“The instructions to close the account did not indicate the account to which the balance of Sh6,542,671,447 was transferred. As a result, it has not been possible to confirm the destination of the balance,” Ouko said.

He also notes that letters by the National Land Commission requesting release of Sh4.9 billion to compensate landowners from the Kenya Railways Corporation were not availed for audit review.

The report shows there was a variance of Sh199.6 million between the amount collected and transferred by the Fund to the National Treasury.

“The statement of receipts and payments reflect Sh18,740,340,683 received from the Kenya Revenue Authority. Records maintained at KRA show a total of Sh18.9 as having been collected and transferred to the National Treasury during the period,” the report reads.

Ouko says that in 2013-14, the National Treasury did not prepare and submit the financial statements for the Railway Development Fund for audit.

But bank statements indicated the Treasury received Sh19.4 billion and disbursed Sh6.6 billion.