22 December 2012

Kenya: State Has Lost Sh7 Billion This Year, Audit Shows

A report by Parliamentary Committee on Public Accounts has revealed that government ministries and departments cannot account for over Sh7 billion.

The report which was table in parliament last week for the year ended says that there are government officials who are frustrating the Auditor General "in order to cover up for fraud and other malpractices".

According to the report, Ministries that could not account for missing amounts are; Ministry of Roads, Foreign Affairs, Home Affairs, Special Programmes, Public Health, Provincial Administration and Internal Security.

Office of the Prime Minister could not account for how some Sh59million was spent. The report also faulted government for exercising "weak and inadequate controls" in the management of imprest.

59 ministries and departments were identified as having huge unaccounted or un-surrendered imprest. Some of these are State House, IEBC, Ministries of Finance, Agriculture and Medical Services.

The PS, Ministry of Finance admitted that his accounting officers exercised weak controls in the management of imprest and even failed to avail documents for audit.

In its recommendation, the report said, "accounting officers must as a matter of urgency use all means at their disposal to ensure that all outstanding imprests are fully recovered. In cases where they are unable to justify non recovery within three months from the due date, Treasury should surcharge them for the loss in accordance with provisions of the new constitution".

"The committee is also recommending that all accounting officers ensure that all unsupported expenditure is accounted for by not later than March 31 2013. Failure to this, the Ethics and Anti-Corruption Commission will investigate the occurrence".

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