Five ministries spent Sh7 billion without approval, says Auditor General

Auditor General Edward Ouko. Ministries have no documents supporting expenditure. [Photo: File/Standard]

By  Jevans  Nyabiage

Nairobi, Kenya: Five ministries spent an extra Sh7 billion during 2011/2012 financial year without the approval of Parliament, the Auditor General audit report shows.

 This is even as 60 ministries and departments failed to settle bills amounting to Sh4.47 billion, raising fears of graft, as various units were unable to account for Sh338 billion in spending.

 The Ministry of Education gobbled Sh5.5 billion more than what was budgeted during the 2011/12 financial year without approval while the Ministry of Justice, National Cohesion and Constitutional Affairs spent Sh1.06 billion extra in the same period.

 The Teachers Service Commission used Sh403.7 million without the approval of Parliament, with the ministries of Roads and Forestry and Wildlife spending Sh67.9 million and Sh1.75 million, respectively.

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According to the report released on Tuesday, the Ministry of Education Appropriation Account for the recurrent expenditure for the year ended June 30, 2012 reflects a net actual expenditure of Sh39.4 billion, against net approved estimates of Sh33.9 billion resulting in an excess vote of Sh5.5 billion. The excess expenditure occurred mainly under secondary and tertiary education.

“No explanation has been provided for the expenditure incurred without Parliamentary authority,” Auditor General Edward Ouko said, adding that an audit carried out in a number of schools revealed glaring cases of misappropriations.

Schools programme

For instance, Starehe Girls School with a student population of 320 received a total of Sh2 million under the Free Day Secondary Schools Programme during the year. Out of this amount, Sh15,600 and Sh68,600 were paid as school fees to Moi and Kenyatta Universities respectively, to support two former students currently studying at the two Universities.

Ouko said the payment of Sh84,200 is contrary to the provisions under Free Day Secondary Education programme, which requires that the funds be used to fund programme only.

This is because Higher Education Loans Board funds Post Secondary Education by way of loans and bursaries to deserving students.

Huruma Girls Secondary School paid Sh174,274 during the year to M/s Africa Real Estate (K) Ltd for valuation of its assets. Further, the school paid another Sh15,000 to Ministry of Public Works officers as transport costs.

“No explanation has been provided for engaging the services of private valuers yet Ministry of Public Works is mandated to value public assets. Further, no explanation was provided for paying Ministry of Public Works staff transport allowance, an expenditure which should have been met by the Ministry,” he said.

Ouko, however, says the excess expenditure does not include pending bills amounting to Sh4.47 billion which, though relating to 2011/2012 were not settled during the year, but were instead carried forward to 2012/2013. 

Carried forward

During the year ended June 30, 2012, 60 ministries and departments did not settle bills of Sh4.47 billion comprising Sh3.1 billion under recurrent and Sh1.3 billion for development votes, but instead carried them forward to 2012/2013.