Prioritise use of public funds to spur growth

The latest Auditor General’s report has shocking revelations of how the Government continues to pay billions of shillings to ghost companies.

What startles is that the payments are for projects that did not take off and against which no value for money was achieved.

Auditor General Edward Ouko, has singled out Ken-Ren fertiliser company, what was to be a joint venture entered into in the mid-1970s between the Government and a now bankrupt American firm known as N-REN Corporation to build a fertiliser factory in Changamwe, Mombasa.

The factory was never built, the suppliers sued, the Government lost. Kenyan taxpayers have been footing the bill for this failed project.

During 2012/13 financial year, the Treasury paid a massive Sh644 million towards the dubious debt. About Sh620 million was payment towards principal loan repayments, while Sh24 million was interest. The Auditor General has warned that the payments are a waste of public funds.

Treasury continues to make the payments even though Parliament has twice said they should be stopped. The payment is besides Sh1.4 billion paid to Universal Satspace Company and First Mercantile Securities Corporation, part of Anglo-Leasing contracts.

The Government has indeed failed the country by not prosecuting the Kenyans behind these companies. For Kenya to realise growth, the Government must be decisive while dealing with corruption, a major undoing in Kenya.

Billions of shillings have been lost in scandals such as Goldenberg, Anglo Leasing and Triton. It is time the culprits were brought to account.