Government finance is in such bad shape that we must act on audit reports, professional audits showing where money has been overspent, misspent and misappropriated.
We have massive debt, revenue is like one-third of spending each day. We cannot afford any more to ignore the Auditor General’s numerous reports.
We must return to responsible expenditure, we cannot afford otherwise. We don't have the money.
For some years there was an attempt to make the Auditor General’s office a government department, which would be dependent. The great thing about the Auditor General’s office today is its independence.
We cannot financially —as a country and a government — ignore these reports and let them to go committee and gather dust. No prosecutions.
It is not just about doing what the Auditor General has recommended. We have to completely overhaul the way government is spending money and ensure taxpayers get value for money.
For a number of years, the governments have ignored prudential management guidelines and basically overspent.
If it were your money — let’s say Sh20 in the pocket — and you couldn’t spend more, you have to stick to that .But governments do not stick to spending more than what comes in. And we have bills all over the place.
That is why, quite often, people supplying the government factor in the long delay in getting payment so they overprice. It is self-defeating.
Even if parliamentary committees compile a report that hasn’t been adhered to, there is no way they can stop what has already been spent.
The governments should think seriously and carefully about the basic prudential management guidelines.
For instance, the Governor of Central Bank of Kenya is very strict on monetary policies but when it comes to government spending money it relaxes.
Accountability after the fact is difficult because the money is gone.
The facts and figures on the table show that the government cannot avoid the audit reports.
Current and future governments must learn they must be much stricter and careful how they spend.
Economist spoke to the Star
(Edited by V. Graham)
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