- •The report also flags loss of revenue deposits from the court stations in Embu Nakuru and Malindi worth close to 90 million which cannot be accounted for.
- The report says that the action was unlawful as failure to disburse the revenue collected promptly to the Exchequer
Image: FILE
Auditor General Nancy Gathungu has put the Judiciary on the spot over the management of Sh350 million staff housing loan, non-remittance of Sh470 million revenue and loss of Sh90 million it generated through the courts.
In her report, Gathungu said Judiciary failed to avail documents relating to the loaning scheme for audit and hence she was unable to ascertain whether it complied with the guidelines and the law.
“… the statement of receipts and payments reflects an expenditure of Sh350,000,000 under other expenses which relates to housing loans to the staff," the report reads.
"However, Judiciary did not prepare and submit for audit the financial statements for the Housing Fund to the Auditor General."
It says this was an abuse of Judiciary mortgage fund scheme regulations which requires the statement of accounts relating to the fund to be prepared, signed and transmitted to the Auditor General in respect of the financial year.
The management was in breach of the law, it concludes.
It also reveals that Judiciary failed to remit the revenue it collected from the public worth Sh476,031,828. The amounts were collected in the months of May and June last year.
“… the statement of financial assets and liabilities reflects a balance due for disbursement to the Exchequer of Sh476,031,828. The unremitted revenue as of June 30, 2021, relates to collections for the months of May and June, 2021.”
The report shows that the action was unlawful as failure to disburse the revenue collected promptly to the Exchequer contravenes regulation 81(2) of the Public Finance Management Regulations, 2015.
The regulation requires that “the Receiver of Revenue shall promptly pay the revenue received into the Consolidated Fund as soon as possible and in any case not later than five days after receipt.”
The report also flags a loss of revenue deposits from the court stations in Embu, Nakuru and Malindi worth close to Sh90 million which cannot be accounted.
It says the nature of the loss of the cash and the recovery strategies employed by Judiciary on the matter was not clear as it has not been specified.
“The bank reconciliation statements for the month of June 2021 for the bank accounts for Embu, Nakuru and Malindi court stations reflect losses amounting to Sh2,682,152, Sh84,588,258 and Sh1,455,800, respectively which occurred in the previous years," report reads.
“However, the nature of the loss, recovery strategies and court proceedings on the matter were not disclosed.”
This makes it difficult to confirm whether the cash balance of Sh7 billion reflected in Judiciary accounts was accurate and complete, it said.
The auditor also raises concern over long-running uncompleted projects involving the construction of 39 court premises across the country, saying tax payers may not get the value for money.
The tender for the construction of 30 courts in question was awarded in 2013-14 at a cost of more than Sh29 billion but is either not meaningfully progressed or completed.
It blames litigation and budgetary constrains.
"Construction works for 30 of the law courts were awarded in the financial year 2013-2014 but have taken long to complete due to among other reasons budget constraints," the report reads.
"Resulting in delays in payment to the contractors and litigations. Consequently, the value for money on the delayed construction works may not be realised."
(Edited by Tabnacha O)