Auditor General’s exposé triggers outrage, shock

National outrage greeted revelations of doubtful Sh67 billion expenditure by several Government departments outlined in a new report by Auditor General Edward Ouko.

The figure is twice the amount taxpayers lost in the infamous Goldenberg scandal; estimated to be Sh37.4 billion by the commission of inquiry into compensation paid to businessman Kamlesh Pattni in the 1990s for fictitious gold exports.

Homa Bay Governor Cyprian Owiti (left) and County Secretary Isaiah Ongwae address the Senate Committee when they were grilled on county spending at Parliament Buildings yesterday.

(PHOTO: MOSES OMUSULA/STANDARD)

Prof Terrence Ryan, an economic consultant who testified at the Goldenberg commission, said at the time that “the negative economic impact of the ‘Goldenberg Affair’ on the country was so massive that its effects continue to be felt to date.”

Yesterday, National Assembly’s Public Accounts Committee (PAC) Chairman Nicholas State auditor’s exposé triggers outrage, shock

National outrage greeted revelations of doubtful Sh67 billion expenditure by several Government departments outlined in a new report by Auditor General Edward Ouko.

The figure is twice the amount taxpayers lost in the infamous Goldenberg scandal; estimated to be Sh37.4 billion by the commission of inquiry into compensation paid to businessman Kamlesh Pattni in the 1990s for fictitious gold exports.

Prof Terrence Ryan, an economic consultant who testified at the Goldenberg commission, said at the time that “the negative economic impact of the ‘Goldenberg Affair’ on the country was so massive that its effects continue  to be felt to date.”

Yesterday, National Assembly’s Public Accounts Committee (PAC) Chairman Nicholas

Gumbo said his team would summon respective accounting officers in the ministries named in the report to get to the bottom of the matter.

"We are in the process of calling the respective accounting officers soon with a view to engaging them for the purposes of ascertaining culpability. Obviously, where public funds have been misused, you can be sure our committee will be unequivocal in recommending not only deterrent measures but also hash punishment for those responsible, "said Mr Gumbo who is also the ODM MP for Rarieda.

But Jubilee leaders urged caution, saying that while the report raised audit queries about spending by the Government, more investigations are needed to determine if any money was lost.

Senate Deputy Majority Leader Charles Keter said it was yet to be ascertained if any money was lost and called for proper investigations to ascertain the auditor's verdict.

Further probe

"The audit report is based on supporting documents. This calls for a further probe. The report might have been drafted after the affecting ministries' failed to avail the required documents for them to be captured in the report," said Mr Keter.

He recalled that when he was a member of the PAC in the Tenth Parliament, they came across such anomalies.

"It should not be misconstrued to mean the monies queried are lost. It may be as a result of misjudgment by the auditors during the auditing process," said Keter.

Earlier, a top Jubilee official claimed that the President and Deputy President William Ruto were unhappy over the report.

"A high-profile meeting will be convened soon to deliberate on the matter," said the official who asked not to be named.

"But the Auditor General will also be hard pressed to explain why some ministries and departments (mentioned in the report) have been issued with clearance certificates yet they have audit queries," he said.

Kakamega Senator Boni Khalwale said action must be taken against officials who have failed to account for money allocated to them.

"The Auditor General's report should not be taken lightly. It is sad that such a huge amount of money cannot be accounted for," he said.

The Opposition demanded speedy investigations by the Ethics and Anti-Corruption Commission (EACC) of officials whose departments were listed in the report as having failed to properly account for funds under their care.

Coalition for Reforms and Democracy (CORD) leaders said officials found to have flouted the law should be prosecuted, a call backed by religious leaders.

Fraudulent systems

Wiper Democratic Movement Secretary General Hassan Omar, who is also the Mombasa senator, said that the report was a clear indication that Government officials are using fraudulent systems of payments to enrich themselves.

Mr Omar insisted that unless serious investigations are followed with prosecutions, the fight against graft is doomed.

His Ford Kenya counterpart Eseli Simiyu said that Kenyans must rise up against corruption.

"It is now a chance for us to walk the talk of anti-corruption. We must now remove all tribal, religious and political blinkers and tackle the matters raised by the Auditor General head-on, including prosecuting the culprits," said Dr Eseli.

The Catholic Peace and Justice Commission (CJPC), the executive arm of the Kenya Conference of Catholic Bishops, expressed deep concern over the queries raised by the auditor general in a report.

"It is unfortunate that while Kenyans are toiling so hard, especially in hardship areas to make ends meet, a few individuals are enriching themselves from funds that would have instead have been used to uplift their lives. These are the people they entrusted with leadership but are now bleeding their coffers," said CJPC vice chair Cornelius Korir in a telephone interview with The Standard yesterday.

Council of Imams and Preachers of Kenya chairperson Sheikh Abdalla Ateka said the Government should ensure that no funds are lost and the money meant for projects are used for the intended purpose.

Auditor general's report questions expenditure of nearly a third of the Sh1.2 trillion spent in the 2013-14 financial year, detailing massive unexplained, plunder of State funds, irregular payments and in some instances blatant plunder of public resources.

The report tabled in the National Assembly on Tuesday names ministries, departments and independent commissions.

Yesterday, Mumias Anglican Bishop Beneah Salala criticised the Government for condoning corruption and accused it of protecting some senior officials mentioned in EACC reports.

Situation worrying

National Muslim Leaders Forum chairman Abdulahi Abdi said that the rate at which public funds are being stolen is worrying.

"Look at the state of our roads. Listen to stories of families who sleep without food and compare to the amount of money that is said to have been misused. Something is not right. We must bring this to an end. Those responsible should be arrested," he said.

Ugunja MP Opiyo Wandayi stated that the latest revelations by the Auditor General's office are grave but not surprising.