Who cooked figures on the Kenya’s financial report?

Auditor-General Edward Ouko in his new report says more than  Sh300 billion cannot be accounted for.

By WINSLEY MASESE

 Listening to Prof Egara Kabaji on his once popular radio show dubbed ‘Books and Bookmen,” a few years back, you would not be amused at what he was driving at.

“When you drive a Mercedes Benz, what matters is not how you acquired it but the fact that you are driving it,” he said then.

Early August, I heard of a story on how a Permanent Secretary, in the previous government, was given more than Sh20 million by his chief accountant. Possibly, he would have bought a limousine, to the envy of other motorists and the neighbourhood.

He however turned it down — whether by design or fate, is subject for another day. Since the hyena did not break its leg, having been caught eating the neighbour’s goats, it is business as usual as the latest audit report indicated more than Sh300 billion was unaccounted for.

Though some have argued this does not mean the resources were misappropriated, chances are there are more plush homes, cars, firms or property purchased from that money.

Public Accounts Committee chairman Ababu Namwamba observes that there are inconsistencies as figures do not reconcile. Some of them are schoolboy scenarios not comprehensible.

Unqualified administrators

As much as there are corrupt elements who might have cooked the figures, there is a feeling a large number of the same administrators are unqualified to do their jobs professionally and competently.

Judiciary Director of Finance Benedict Omolo admitted during a workshop at Safari Park Hotel, Nairobi, last week that the office had less than 15 qualified accounts by last year, of a possible 150 accountants. Though this has changed, it’s emerging that a number of these accountants are not certified.

 The Kenya Accountants and Secretaries National Examination Board (KASNEB) has done its part by training and producing qualified accountants but the problem lies with the government by not employing qualified accountants,” said Secretary and Chief Executive Pius Nduati.

“The problem is with the government as a number of accountants employed at the provincial and district levels, who have now been absorbed in the devolved system of government, are not qualified,” he noted.

Besides, those who worked as administrators in the government are the ones who work as accountants.  Nduati said that the board attempted to have the government define who an accountant or finance director is in 2008 but that has not worked well. This way, the preparation of financial reports will only be done by qualified personnel.

 “Part of these efforts were to have the accountants registered and be held accountable in case there is unethical behaviour in their professional career,” he noted.

 Namwamba argues the Committee would compel ministries and departments to have plans on how to expend the money should.

“They must justify before they are handed the money as part of the controls in the system.” “Before you are given money, you must explain how you spent the previous budgetary allocation.”

 Namwamba reiterated that ministries whose absorption capacity is 50 per cent should not be given money. Resistance to change has been cited as the main reason why some employees can connive to switch off the system to resort to the manual way and in the process create their own mechanisms to steal.

A number of officers said most shutdowns happen in June, when accountants are supposed to return the documents to Treasury.

Fund monitoring

Devolution and Planning Cabinet Secretary Waiguru called for a single system for the whole government so that one can easily be monitored.  Of much concern is the failure of a system that was meant to streamline the management of the public finance management (IFMIS).

Waiguru noted that the new system has security features to detect fraud. “If you make a mistake, it is not deleted and this makes it easy to detect who attempted to fraud.” 

“User cannot attempt to use the same document to get second payment, which she says has been the norm. The only option is for one to circumvent and the escalation of the procedure,” she said.

“Oracle is meant to have all the documents checked and confirmed by the authority. If it hangs, then someone was attempting to defraud the ministry or department,” she said.

 The cabinet secretary explained  that the features available is a deliberate move so that one cannot delete some symbols used to steal such as a slash, stroke, full stop or comma, noting that normal mistakes are corrected at the ministry. 

Ouko also advised Cabinet Secretaries and Principal Secretaries to take interest in the system if it is going to work.

“The system has the capacity to identify, trace and monitor transactions as budgeted for throughout the year. People cannot manipulate it since each officer has a password and any mistake made can easily be traced,” he noted.  A government official who sought anonymity due to job security observed that part of the problem is the limitless access government officers have towards the money. “This makes those in charge culpable to abuse their powers. The only solution therefore is to allow the officials access what they need to use at a particular period,” he said.

Besides, Nduati sees lack of good governance in the manner in which accounts are prepared.

Weak enforcement

“This touches on the integrity of the accountants and whatever they do amounts to fraud as they manipulate the system for personal gains,” he noted.

Part of the problem also lies with lack of enforcement of the law especially on surrendering of imprests 48 hours after reporting.

“The law on imprest is clear but this is not the case and must be enforced and the government tighten the system if we are to reverse the trend.” Will the hyena ever break its leg for other to learn?