Sh9b riddle in free school cash scandal

Fresh auditors questions have emerged over the use of Sh9 billion free education money amid speculation that President Kibaki will announce changes at the ministry on Monday.

In an audit report, parts of which the Daily Nation has seen, the auditors said they were not sure that the money given to primary and secondary schools as grants to buy books and other teaching materials was used for that purpose.

Also puzzled

The auditors were also puzzled by an additional Sh2.7 billion given to 600 primary schools to build classrooms, dining halls and dormitories which appear not to have been requested or needed.

The ministry has admitted Sh100 million was embezzled and officials have leaked selected parts of the audit report, which show widespread misuse of public funds. The picture painted by the full report must be a lot worse.

The President, who flew into the country on Saturday night, was yesterday said to be contemplating action against top education officials.

According to Office of the President officials, who did not wish to be named speculating on what the President might do, Mr Kibaki could sack top officials.

They said the President appeared particularly unhappy that no one was taking responsibility for the poor handling of free school money, and that the officials appeared to be passing the buck.

The auditors do not categorically conclude that the Sh9 billion was embezzled, they nevertheless conclude that “this expenditure is not eligible”.

“The requests from the schools were not made available, and it was not possible to establish how the schools were identified in the first place,” said the audit report.

The auditors, from the Finance ministry, said the Education ministry does not have an official policy on how the infrastructure money was given to the schools.

They found that Mahoho primary school in Taveta received Sh400,000 without a formal request, and in a preceding disbursement, was given Sh1.8 million.

“There was no evidence that the school had received the funds, or even requested,” the audit report said. An inspection in Western, Nyanza and Rift Valley provinces revealed that two schools could not account for Sh2.5 million.

The bank accounts of both Mukoyani and Sikulu primary schools had been closed, with Sh700,000 and Sh1.8 million in each respectively.

A senior education official in the ministry, who requested anonymity because of the sensitivity of the matter claimed accused his colleagues of asking some selected schools to apply for the money secretly. “A public notice has never been issued that there is infrastructure money available for the schools to apply,” the official said.

Work not done

The auditors noted that Sh3.2 million was sent to three schools namely Namaanga, Nabichakha and Chenjeni in Bungoma to pay suppliers for work not done, and payments were made in advance.

The procedure is for schools to first do a needs analysis to establish the exact amount that they need. The auditors said no such assessment seems to have been carried out.

Prof Mutahi, in a phone interview, however, disputed the claims. “The allocation is based on a needs assessment and there is no money that is disbursed without it,” he said.

The auditors want Head of Basic Education, Mrs Leah Rotich, to explain why Sh1.8 million was given to seven private primary schools. “These schools are not eligible for funding by the government,” the audit report says, adding that “they were in private business.”

Mrs Rotich played down the scandals at the ministry, claiming no funds had been embezzled as reported.

Speaking on Sunday when she presided at a graduation ceremony at Kabarnet High School in Baringo central, Mrs Rotich said “the missing Sh100 million was only meant for workshops.”

“The Sh1,020 for every child has not been interfered with in any way,” she said and welcomed the President’s order to KACC to investigate the ministry.  

Saboti MP Eugene Wamalwa called for the prosecution of those found to have stolen school money. He was speaking at a funeral in Uasin Gishu.

Public Accounts Committee chairman Bonny Khalwale said his team would get to the bottom of scandals at the ministry.

He claimed more than Sh200 million was given to buy laboratory equipment under what he said were dubious circumstances.  
Additional reports by Benson Amadala,  Peter Ng’etich and Wycliff Kipsang