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House committee wants forensic audit on revenue

Updated Wednesday, September 19th 2012 at 00:00 GMT +3
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By Peter Opiyo

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It is still not known the exact amount the government collected as revenue in the financial year 2007/2008 even after a parliamentary team probed the matter.

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The inquiry arose from a study by Mars Group Kenya whose findings were raised in parliament by Gwassi MP John Mbadi  in April 2011. 

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The report is a culmination of a long process that recommended among others complete adoption  of  submissions proposed by the Mars Group Kenya that a foresnsic audit of government revenue be  ordered and executed accordingly.

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The parlaimentary team has therefore recommended that a forensic audit be carried out into the revenue accounts of 2007/2008 financial year to establish how much the government collected as revenue.

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There have been inconsistencies regarding the amount collected with Kenya Revenue Authority, Ministry of Finance and Auditor General presenting conflicting figures.

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Ministry of Finance submitted to Parliament Sh466 billion as un audited revenue as opposed to audited revenue figures of Sh516 billion. This was an under-declaration to Parliament of about Sh70 billion.

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At the time the ministry also declared to Parliament only Sh397.6 billion as ordinary revenue compared to Auditor General’s figure of Sh496 billion, an under-declaration of Sh98.5 billion. On its part KRA said it collected Sh433.9 billion.

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It is these inconsistencies that the joint Committee of the Budget and Committee on Finance ventured to probe, following a question raised by Mbadi.

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“An independent forensic audit into the revenue accounts of the government of Kenya be conducted for the financial year 2007/2008 to determine the true revenue position of the government,” the team recommends in its report.

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During its meetings the team found out that there were several discrepancies in the budget and recommended that the government reviews its accounting systems to make them more efficient.

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Inconsistencies were also detected in the total loans by the government in which Treasury availed a figure of Sh20.1 billion against a figure of Sh26.7 billion, an overstatement of Sh6.6 billion to Parliament.

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