By Peter Opiyo
Parliament was misled to approve unaudited revenue for 2007/2008 financial year even as the actual amount collected in that year remains unknown.
It emerged at the sitting of the Parliamentary Budget Committee that the figure of Sh397 billion presented to Parliament as ordinary revenue was raw and could not pass as the actual revenue. The Treasury is required to present actual revenue to Parliament and not unaudited figures.
The Treasury Financial Secretary Mutua Kilaka admitted that the figures presented to MPs were not audited, as should be the case.
“The figures presented were raw, they were not audited and these were the figures the minister used but he didn’t table them (in Parliament) deliberately. These figures must be the audited receipts, not raw figures. We apologise for this,” Mr Kilaka told the Elias Mbau-led committee.
This came as questions were also being raised over how much the sale of Telkom Kenya generated during that financial year. The Auditor General, Edward Ouko, who appeared before the committee on Wednesday said his office was presented with Sh11.5 billion as proceeds from the sale of the corporation. But on Thursday, Kenya Revenue Authority and the Treasury put the figure at Sh15 billion.
The committee is probing the discrepancies that arose from the revenue collected by the Government during the year. Parliament was presented with Sh397 billion as ordinary revenue while the Auditor General was given a figure of Sh466 billion.
But on Thursday, KRA Director General John Njiraini said the taxman collected Sh433 billion as ordinary revenue during the year, further bringing more confusion.
“We have a very strict system for tracking and monitoring revenue collection. We are confident that all revenue in our account is properly accounted for,” said Mr Njiraini.
reconciliation
KRA told the committee that it reconciled the figures jointly with Central Bank of Kenya and the Treasury. Though the Treasury indicated it reconciled the figures after the Controller and Auditor General had presented its report to Parliament, it was unable to give the actual money collected as revenue and sought to be given more time.
KRA maintained that its figures were accurate as they were able to identify all the discrepancies with all the parties when they reconciled the accounts. When Gwassi MP John Mbadi sought to know the reasons behind the discrepancies, Kilaka said they were occasioned by timing difference, uncaptured receipts, posting errors and unavailability of reconciliation systems.
He, however, said this was later corrected by reconciliation. “These anomalies were addressed through reconciliation and submitted to the Auditor General,” he said. Kilaka, however, could not give the actual revenue figures from the Treasury, saying his officers needed more time.
“We need to go back and compile and give the correct figure,” he said.
On Thursday, the Treasury told the committee that its ordinary revenue was Sh419 billion but was not certain when pressed further by Mbadi prompting Kilaka to ask for more time. He, however, said no money was lost.
“Procedures adopted for revenue collection don’t allow withdrawal of cash in transit. No revenue was therefore lost during the year under review,” said Kilaka. Of the 16 accounts presented to the Auditor General by the Treasury, only three were certified by the auditors while 13 were qualified (financial parlance for not certified).
Mr Mbau said disapproval of 13 accounts raises questions on the competence of the officers.
On Wednesday, Mr Ouko told the committee that his work is frustrated by lack of seriousness of accountants at the ministries. He said at times accountants give incomplete reports resulting in chaos when audits are carried out.
“Preparations of accounts and closure of books are not taken seriously by the ministries. Sometimes we have to bend over backwards, some basic things come missing in the reports and it comes a time we say we have to go ahead,” he told the committee on Wednesday.
On Thursday, Public Accounts Committee Vice Chairman Julius Kones said they had initially made it clear to the Treasury that Parliament would not allow the use of unaudited figures.
