Accountants' body ICPAK faults Health CS on appointment of auditor

The Institute of Certified Public Accountants of Kenya (ICPAK) has faulted plans by Health Cabinet Secretary Cleopa Mailu to appoint an independent auditor to relook at Sh5.2 billion said to have been misappropriated.

In a statement issued on Friday, ICPAK termed the plan as misplaced focus.

“The object of the independent audit ought to be to ascertain the veracity of the issues raised not an evaluation of the interim audit report.

“We must think of a broader response whose aim should be to seal any loopholes and weaknesses in the accountability systems that the internal audit inquiry may have identified to avoid recurrence,” stated the statement signed by ICPAK national chairman Fernandes Barasa.

Already, the parliamentary Public Accounts Committee (PAC) has warned CS Dr Mailu that he may be forced to pay from his pocket if he hires a private auditor to verify questionable spending at the ministry.

The CS had accused the internal auditor of leaking an interim audit report to the media and said he would hire an independent external auditor to verify the corruption claims.

ICPAK said they noted that most of the functions that were being funded, which are the subject matter of the allegations, are listed under Schedule Four of the Constitution as fully devolved.

“This is respect to the principle of subsidiarity and adherence to schedule four of the Constitution of Kenya that delineates the functions of the national government from those of the county governments,” the statement reads

ICPAK said Kenya’s internal audit process adheres to the International Professional Practice Framework (IPPF) for Internal Auditing Standards as adopted and issued by the Public Sector Accounting Standards Board (PSASB).

The PSASB is a statutory body created by an Act of Parliament (PFM Act 2012).

Whistle-blower protection

The accountants’ body recommended that the government should expedite the completion of a whistle-blower protection policy and enabling legislation to protect all whistle-blowers in the country who are keen on transparency, accountability and prudent utilisation of public resources.

ICPAK also said accounting institutions such as the Ethics and Anti-Corruption Commission (EACC), of the Auditor-General’s office and other State agencies should expedite the on-going audits and investigations to identify the facts on this matter.

“Public sector and more specifically accounting officers must appreciate the role of internal audit as a principal partner through whom stronger systems of internal checks can be established.

“We must nurture healthy working relations with internal audit function and seek an understanding that the role of internal audit is to point out potential risk exposures.

“Consequently, both parties must at all times agree on expectations to which they must remain focused as a matter of principle,” ICPAK added.