Audit sought for Treasury’s billion errors

By Peter Opiyo

A lobby group has recommended an independent forensic audit into the Government’s revenue accounts for the last five years owing to inconsistencies detected on the 2007/2008 revenue.

Mars Group told the Parliamentary Budget Committee that there are indications that the Government has not been disclosing the actual revenue collected raising queries on its expenditure.

“It is true we have no idea how much was raised as revenue. We therefore recommend the Committee to investigate the matter up to date because there is a clear demonstration that the pattern has continued over the years,” said Mars Groups Jayne Mati.

Treasury, Kenya Revenue Authority and Auditor General have presented different figures as revenue collected in 2007/2008 as probe into the matter continued to raise more queries on tax payer’s money.

She said there are indications that the pattern of inconsistencies has continued over the years and that MPs have to go deeper and probe revenue collected over the last five years.

From their analysis, they said there is a variance of about Sh77 billion from what Treasury declared as ordinary revenue. The Group says it found out that Sh496 billion was collected as ordinary revenue while the Treasury’s figures point at Sh419 billion.

KRA said it collected Sh433 during the year in question while Auditor General declared Sh466 billion as ordinary revenue for that financial year.

Rangwe MP Martin Ogindo, who chaired the meeting, said it was very sad that the authorities charged with effective spending of public funds could not declare the actual amount collected.

“It is very sad that our records are not a true reflection of the actual position. It is very sad there has been persistent and consistent misrepresentation of revenue figures and the Auditor General hasn’t solved the situation because his figures have also changed,” said Ogindo.

Naivasha MP John Mututho and Manyatta MP Emilio Kathuri said the inconsistencies were worrying and could result into loss of billions.

The inconsistencies were detected by Gwasi MP, John Mbadi and the Speaker Kenneth Marende directed that the Committee probe the matter and file its report to Parliament.

While appearing before the Committee last week, Financial Secretary at Treasury Mutua Kilaka said the inconsistencies were occasioned by timing difference, uncaptured receipts, posting errors and unavailability of reconciliation systems.

But Mars Group’s Mwalimu Mati Thursday dismissed the argument on timing difference saying Treasury has adequate time under the law to compile its records before they are audited.

“The timing difference is an excuse not allowed by the law. So for the ministry of Finance to suggest timing difference is the issue then it means auditing is done at the start of the financial year,” argued Mati.

Mati said Treasury is normally allowed 100 days to compile its report before they are submitted for auditing and therefore timing issue should not arise.

The Group also proposed immediate retirement of the Accounting Officers at The Treasury responsible for revenue collection for failing to keep proper records.

Parliament was misled into approving the unaudited revenue for 2007/2008 financial year and Mr Kilaka told the Committee last week that indeed the figures presented to MPs were not audited. Treasury declared Sh397 billion to Parliament as ordinary revenue collected in 2007/2008.

“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 Committee last week.