A parliamentary committee accused Finance minister Uhuru Kenyatta of authorising inflated expenditure by key ministries without the authority of Parliament.

The Budget Committee claimed the minister flouted the Fiscal Management Act for disbursing additional money to Planning, Local Government and Agriculture ministries beyond their development budgets for the first quarter of the current financial year without the authority of Parliament.

The minister rebutted Public Accounts Committee (PAC) allegations he had flouted Public Procurement and Disposal Act in procuring 130 Volkswagen Passat cars from Cooper Motors Corporation Limited.

He testified the deal to procure the cars was transparent and competitive following the awarding of a tender to CMC by the Public Works ministry in October last year.

He also demonstrated that VW Passat cars were cheaper in price and maintenance and more efficient compared to the Mercedes Benz E200, which the Government is phasing out.

"Procurement of the VW Passat was strictly in conformity with the Public Procurement and Disposal Act," the Minister argued and accused his critics of peddling what he said was "baseless, unfounded and untenable" in pursuit of "corporate wrangles and lobby interests."

Uhuru said the Public Works ministry lawfully extended the tender for three months after June this year and he procured the cars in July.

"VW Passat is what is in the best interest of the public," according to the minister who disclosed that the E200 Mercedes Benz (of 1800cc category) the Government is phasing out that cost Sh6.2 million including duty compared to the VW Passat (of 1798cc) at Sh3.7 million including taxes and duties.

The minister said he played no personal role in the policy change to the VW Passat and added that the Public Works ministry had determined the new cars were more efficient in terms of maintenance, fuel consumption and other relevant variables.

But the minister admitted the Government has had contracts with CMC in 2003 whose details he did not have with him.

Responding to reports that CMC lent US$24.2 million to the Government in 2003 with which she was buy 522 Land Rovers from the same corporation, Uhuru said the vehicles were delivered and added that any audit queries could be answered by the Controller and Auditor General.

Finance PS Joseph Kinyua admitted that the ministry has not finished compiling an inventory of all Government vehicles sold during the 2006/2007 financial year.

But earlier, the Budget Committee summoned the minister to appear before it to explain why the country’s economic growth has slowed despite rising revenue collection, the economic stimulus package and also disclose details of the intended privatisation of 26 State firms.

Committee chairman Elias Mbau said the minister has allowed the Agriculture minister to spend 85 per cent of its development budget for the whole of the financial year although Parliament has voted for only half of the expenditure.

He said the Planning and Fisheries ministries have exceeded their development budget after spending 100 per cent of their proposed budgets for the financial year although Parliament has only approved 50 per cent to be spent.