In a paid, advert, the authority said all assets and cash in its custody is safe saying the allegations are unfounded.
The Authority has financial assets worth Sh31.8 billion.
The cash, the agency explained, is deposited at the Central Bank of Kenya unclaimed assets Trust Fund account and invested in Treasury Bills and Bonds.
“The Unclaimed Financial Assets Authority wishes to refute allegations of misappropriation of funds under its custody,” it said.
The authority is a state corporation established under the National Treasury pursuant to the Unclaimed Financial Assets Act. No. 40 of 2011. Its primary mandate is to receive unclaimed financial assets from holders, safeguard them and re-unite the assets with their rightful owners.
“The Authority has conducted itself, its board and staff with honesty and true to the calling of public duty,” it said.
“The Authority has jealously guarded all assets under its custody as entrusted to it and provided for the Unclaimed Financial assets Act, 2011, and other relevant legislations.”
The paid advert came at a time when Senate launched its probe.
Nominated Senator Gloria Orwoba sought a statement on the alleged the misappropriation.
She wants to know the total amount remitted to UFAA and a thorough investigations into the alleged loss of Sh10 billion.
According to Orwoba, only Sh1.5 billion out of the Sh11.5 billion has been accounted for.
“Can UFAA explain why it incurred expenses of over Sh500 million for substandard audit services undertaken, stating the procedure used to procure the services of the audit firms and the role played by the UFAA management in supervising these audits,” Orwoba said on the floor of the house.
“State the steps taken to determine the value of unclaimed assets in form of shares that are not currently listed in the Nairobi Security Exchange, outlining any measures taken by the Authority to safeguard the shares from decreasing in value.”
The matter was referred to the Senate Committee on Finance and Budget chaired by Mandera Senator Ali Roba.
According information in the authority’s website, the approximate value of unclaimed assets remitted to date stands at Sh62.34 billion.
The state institution also has paid 29,076 claimants since it was created in 2011.
Total payouts made by the UFAA to date stand at Sh2.03 billion.
“Other non-cash assets reported as unclaimed assets by holders comprise 1.7 billion units of shares and 3,608 safe deposit boxes,” the uuthority says.
“To ensure accountability of the fund, the authority has always conducted both internal and external audits on the Trust Fund and the authority’s operations over the last nine years.”
“None of these audits has raised any irregularities in the conduct and management of unclaimed financial assets in the custody of the Authority.”
The audits – according to the statement – have indentified unclaimed financial assets worth Sh12 billion.
“The make-up of the identified unclaimed financial assets with public and private sector institutions was sh4.5 billion and Sh7.55 billion respectively,” the statement reads.
“Consequently, a total of Sh1.5 billion has been remitted to the Authority while enforcement mechanisms have been instituted to recover all the qualifying assets.” In January the authority invited the public to claim Sh63 billion in cash and other assets it is holding.
