•Treasury and National Assembly on the spot for failing to repeal laws that created the fund.
•The auditor concluded the effective use of the fund's financial resources could not be confirmed
Image: FILE
An audit has flagged hundreds of millions of shillings lying idle in a number of government bankrolled kitties including that for IDPs.
Auditor General Nancy Gathungu has castigated the National Treasury and by extension the National Assembly, for the delays in winding up the funds.
Apart from the humanitarian fund-for IDPs, Treasury has also not wound up the Rural Enterprise Fund, Treasury Main Clearance Fund, Provident Fund, Kenya Local Loans Support Fund, and fund for widows and orphans of Asians who once served the government in the independence era.
The National Treasury had formed a task force on the winding up of dormant funds, which collectively have Sh600 million in their books, but there is nothing to report.
For the Rural Enterprise Fund, a winding-up order was issued by the Minister for Finance in September 2012. Revocation orders were approved by President Uhuru Kenyatta's Cabinet.
“However, no evidence was provided to confirm whether the Repeal Act had been passed by the National Assembly. My opinion is not modified in respect of this matter,” Gathungu said.
For the IDPs' cash, the Fund operated four commercial bank accounts and one account at the Central Bank of Kenya for disbursing grants under the cash payment programme.
Gathungu said her review revealed that the accounts had Sh272.6 million as of June 30, 2022, despite the conclusion of disbursement of grants to IDPs under the cash payment programme.
Treasury has been called for failing to invest or place the money on a deposit interest-earning account, which should be credited to the fund.
The account had no movement for two and a half years at the time of the audit.
“In the circumstances, the effective use of the Fund’s financial resources could not be confirmed,” Gathungu said.
The government clearing agency fund has its books reflecting a balance of Sh300 million as receipts and Sh52 million as outstanding payments.
Gathungu said that the amounts were, however, not supported by ledger, trial balance or any verifiable documents from which the receivables and payables were drawn.
The Fund has been dormant for over 10 years. The management has been preparing financial statements for a dormant fund over the years.
“In the circumstances, delay in the winding up process has resulted to wastefulness in the use of public resources as well as bearing the burden of redundancy in the maintenance of records,” Gathungu said.
On the Treasury main clearance fund, there was no evidence provided to confirm that the revocation orders in respect of the kitty had been passed by the National Assembly.
The Kenya Local Loans Support Fund also has a bank balance of Sh9 million and an investment balance of Sh71 million – being interest from the fund.
The Fund has been dormant since June 2006 and was among those that were to be wound up by the National Treasury task force on dormant funds.
For the provident fund, an outstanding debt of about Sh4 million owed to the fund by a defunct state corporation took centre stage in the query.
Further to this, the Provident Fund does not have any surviving beneficiaries.
The Asiatic Widows and Orphans fund has been dormant since June 2002 when the only surviving beneficiary died.
It was also due for closure but that is yet to happen following the delays by MPs to enact the respective law.
Gathungu said there was no evidence provided to prove that the Repeal Act had been passed by the National Assembly.
“In the circumstances, the winding up of the Fund has taken an unduly long time resulting in wastage of public resources. My opinion is not modified in respect of this matter,” she said.