House team queries PM's office over unused funds

The initial set-up of the Prime Minister’s office in early 2008, tied up Sh152 million, forcing the money to be returned to the Treasury.

The matter came up Thursday as an audit query in the 2007/2008 budget being scrutinised by the Parliamentary Public Accounts Committee.

The under-expenditure of the budget, the PAC heard, was a result of the transfer of the Efficiency Monitoring Unit and the Public Sector Reform programme from the Office of the President.

The permanent secretary in the Prime Minister’s office, Dr Mohammed Isahakia, said the money was underutilised in the PM’s office, because part of the functions of EMU and PSRP were handled by the Office of the President during the financial year.

The PM’s office thus spent only Sh31 million through the EMU in the last quarter of the financial year.

PAC vice chairman, Dr Julius Kones, asked Dr Isahakia to quantify the impact on development for unused funds, but his question was not answered.

However, other committee members backed Dr Isahakia’s explanation saying they were “satisfied.”

Public Investment Committee chair, Mr Mithika Linturi, said the PM’s office had done pretty well with spending Sh31 million in the last quarter, because it was almost a quarter of the amount (Sh45 million) that ought to be spent as per the budget.

But as he backed the recommendations, the PAC chair, Dr Boni Khalwale (Ikolomani MP), said the money should have been utilised to buy drugs for hospitals many of which were strained at the time.

Similarly, Sh9 million in pending bills, from the Office of the Prime Minister, was also resolved after the Controller and Auditor General pointed out the query to the PAC.

Dr Isahakia said the pending bills were as a result of “liquidity problems” and the frequent breakdown of the Integrated Financial Management System (IFMIS).

Part of the amount was also as a result of a contractor’s failure to present a certificate of completion for the refurbishment of EMU offices in Upper Hill area.

But the PS added that the bills were finally cleared.

Ms Agnes Lutta, an assistant director of audit holding brief for the Controller and Auditor General, warned: “We are concerned that when bills are not settled on time, it affects the subsequent year.”

Dr Isahakia assured the PAC that the PM’s office will no longer have pending bills.

Meanwhile, the PAC also queried the progress of Kazi Kwa Vijana and the social welfare programmes.

Mwala MP Daniel Muoki said the programmes were erratic and therefore not properly managed.

But the PS said the programme was on course after some loose ends had been tightened.

“Hopefully it will be implemented in a more efficient and transparent manner than was the case last year,” said Dr Isahakia. “The programme is still on and the lessons have been learnt.”

Dr Khalwale queried the government’s priorities regarding social welfare, questioning why “old people are being given money” when “patients are dying in hospital because drugs are not available.”