Treasury yesterday denied money was lost as a result of inconsistencies in the Revenue Accounts for the election year 2007/08. Senior treasury officials yesterday told a joint Parliamentary committee that inspections carried out after inconsistencies emerged did not reveal any loss of government revenue.

Assistant director of audit at Treasury Antony Waiganjo told the committee on Budget that was conducting session with the Public Accounts Committee and Finance committee that the noted inconsistencies did not mean money was lost. Waiganjo was accompanied by Shem Mangure who represents the Auditor General at Treasury and Daniel Ndung'u who is in charge of auditing at treasury.

The official told MPs that the main reasons for the variances was timing differences, receipts not captured and posting errors which were not corrected or reconciled in time before the audits were concluded. The three committees were jointly directed to probe the matter after Treasury failed to explain to the satisfaction of MPs why discrepancies amounting to Sh498 billion were found in the Revenue Accounts for the election year 2007/08.

In question are monies collected from Kenyans in form of Pay-As-You-Earn, VAT, taxes on corporations as well as cash borrowed by the government from the domestic market during the financial year the country held the last general election. MPs are demanding answers to why Treasury accounts are not adding up claiming that some taxes collected could have been used to illegally fund the 2007 election campaigns.

Deputy Speaker Farah Maalim consequently directed the Budget committee which is chaired by Rangwe MP Martin Ogindo, the Public Accounts Committee chaired by Ikolomani's Bonny Khalwale, and the Finance committee headed by Nambale MP Chris Okemo to probe the matter urgently. The Speaker described the figures as "mind boggling".

When they appeared before the MPs, the treasury officials explained that some statements were not accepted due to various anomalies. They said the anomalies included variations between the Finance ministry and KRA figures. They also said variation between revenue statements and Ministry Ledgers figures had anomalies but did not mean cash was lost. "The statement of revenue balance was also not in agreement with Exchequer record figures said Waiganjo. The MPs however said the officials were not explaining adequately why there were discrepancies and directed them to prepare a detailed report.