Treasury in Sh10b suspicious county expenditure
Treasury's statementShe cited Treasury's statement on Monday to all County Executive Committees (CECs) for Finance stating that “some counties have been running the wrong report for budget execution by programmes and sub-programmes leading to wrong descriptions of their programmes." She said this was an acknowledgement by the National Treasury that it was indeed a misreporting on IFMIS that has affected the budget expenditure reporting in eight counties. "I wish to advise the Director IFMIS and National Treasury officials that Kenyans are watching their conduct. Any attempt to intentionally misuse IFMIS to mislead through disinformation and falsely allocating blame to County Executives thereby exposing them to distracting witch-hunt will not be countenanced," Waiguru said.
SEE ALSO :Counties faulted on revenue collectionThe matter came to light last week during the grilling of Kiambu Governor Ferdinand Waititu by the Senate, when the suspect allocations in excess of Sh1 billion were uncovered in the county's financial statements. Oparanya had led his colleagues Amason Kingi (Kilifi), Ferdinand Waititu (Kiambu) and Mwangi wa Iria of Murang'a in a meeting with the Controller of Budget Agnes Odhiambo and Treasury officials to thrash out the matter. Separately, Nyamira Governor John Nyagarama also denied reports that his government had appropriated suspicious expenditures of national government budgets. Nyamira, according to the budgets generated from IFMIS, had appropriated a total of Sh459 million for the votes of primary education, Statehouse functions, cabinet functions and coordination of ministries, departments and agencies. Nyagarama also blamed the National Treasury for the financial misrepresentation which he termed as an anticipated error. "We anticipated the errors as the Council of Governors when we said the IFMIS would mess us, it is now coming out very clearly," he said. Laikipia Governor Ndiritu Muriithi said his government had flagged errors generated by IFMIS mid-last year. He said that on August 16, the county wrote to the IFMIS director alerting him of the errors on the system-generated trial and balances and unaccounted transactions. The governor said that in a response on February 22, this year, the IFMIS director confirmed that there was a configuration issue under Laikipia County, which resulted in the system generating erroneous reports. “Now that the PS National Treasury and his director IFMIS have confirmed that the system has generated erroneous reports, Auditor General Edward Ouko, who in the past has also publicly expressed doubts about the IFMIS system, should expunge the annexures and any conclusions derived from audit reports,” said Muriithi said in a statement yesterday. But Treasury has indicated that it will not be cowed to apologise and instead threw the ball back to the governors, accusing counties of negligence in budget-making. Kamau Thugge, the Principal Secretary of the National Treasury, had indicated in a statement issued Monday that the counties were at fault and that it was the duty of Finance executives to ensure the budget items are captured accurately.
Governor's meetingLawyer Peter Wanyama for CoG, indicated that when he earlier met Oparanya in Kisumu and discussed the problem in detail, it emerged that Treasury had confirmed that there was mix-up in the printing of the budgets. It is these erroneous budgets that were subsequently uploaded into IFMIS for several counties -Kiambu, Laikipia, Kakamega, Kitui and Nyeri. “The computer picked components of the National Government budget by error and included them in the county budgets during the printing,” said Wanyama. “That (mix-up) is what happened. It explains why in the main audit report the queries are not raised by Ouko. The error is contained in the budget that was printed from the IFMIS system and attached to the audit report,” he said. He explained that in public finance management, it was not possible for a county government to allocate money to national government functions and subsequently spend it. “The budget of a county government is heavily scrutinised by the budget committee of county assembly. After this it is subjected to public participation and an appropriation bill is prepared and signed into law,” he said. Wanyama said the Controller of Budget is fully involved in the budgeting process