I diverted Sh33m meant for varsity, Karega admits

By David Ochami

Embattled Education PS Karega Mutahi diverted Sh33 million to the construction of Machakos Teachers Training College two years ago.

He admitted before a parliamentary committee investigating him that he did not inform or seek authority of Treasury when he transferred the money from an amount of Sh45.5 million allocated the Ministry for rehabilitation works at Egerton University. "I sincerely apologise to Treasury," Karega said, as he acknowledged the transfer.

But the Education Ministry PS argued the transfer was inevitable because Treasury itself had withdrawn money meant for the teachers’ college from its accounts. Yesterday, Prof Karega said he also feared that Treasury might not have authorised the diversion or supplementary budget for the teachers college because the 2006/2007 financial year was ending.

"We did not because of the time factor. We would have been blocked by Treasury," he said, following a question by acting Public Accounts Committee chairman Isaac Muoki (Kitui South) who wanted to know why he acted unilaterally.

Treasury authority

The PS also claimed it was ‘irregular’ to seek Treasury authority on such matters after the passing of all supplementary budget estimates.

But a Treasury official present disclosed that regulations obliged the PS to make a formal request for the diverted expenditure.

The unnamed official accused the PS of neither signing necessary forms nor notifying Treasury by any other means before diverting the money.

Bura MP Nuh Nassir Abdi accused the PS of setting a bad precedent as MPs David Onyancha of Bonchari and Chachu Ganya of North Horr demanded an end to the PS’ discretion.

Dr Nuh, Charles Onyancha and Chachu Ganya demanded an end to such diversions, saying it contravened regulations.

Mutahi shifted blame to Treasury, saying: "I had the money in the budget for Machakos but Treasury took it away... This diversion of budget funds was done to save the public from incurring more losses as the Machako’s pending bill would have attracted penalties".