Auditor reveals missing Sh2.5 billion in Lands ministry

Auditor General Edward Ouko. [photo: file/Standard]

The Ministry of Lands cannot account for Sh2.5 billion, the Auditor General has said.

The ministry’s revenue statement reflects a total revenue of Sh3.03 billion as at June 30, 2015.

However, the cash book indicates total revenue of Sh517.7 million at the same date.

The resultant difference of Sh2.5 billion has not been explained or reconciled, making it hard to confirm the accuracy and validity of the revenue amount of Sh3.03 billion.

Auditor General Edward Ouko explained that there were discrepancies in the money collected by the Kenya Revenue Authority (KRA) on behalf of the ministry, arrears of revenue, money transferred to the Exchequer and inventory of Government buildings and houses.

THE ARREARS

There are also missing receipt vouchers under banking of revenue collections and un-reconciled difference between the cash book and the revenue statement.

According to the report, there is un-reconciled difference between the cash book and revenue statement of the ministry.

 The ministry’s statement of revenue also indicated that Sh2.07 billion was transferred to the Exchequer account by end of June last year.

However, the previous year’s records maintained by the Controller of Budget indicated total receipts of only Sh1.6 billion, resulting to unexplained variance of Sh488.4 million.

Therefore, the accuracy and validity of the amount transferred to the Exchequer account of Sh2.07 billion cannot be confirmed.

In the 2013/2014 financial year, there was a discrepancy of Sh523.6 million.

Also, the statement of revenue does not reflect arrears of revenue and revenue abandoned as required by Public Finance Management Act, 2012 thus the status of arrears of outstanding revenue cannot be established.

The Auditor General’s review collections and banking revealed that there was under-banking of revenue amounting to Sh5 million. The ministry has not explained the reason for this.