Mars Group points out Sh251bn error

Parliament’s Budget Committee has been alerted about a Sh251 billion mathematical error in the 2011-2012 Budget.

The House team was also notified of a repayment plan for a non-existent fertiliser factory, in which Sh1.2 billion will be paid out to an Austrian firm over the next three financial years.

Speaking on Wednesday at a meeting in Parliament’s County Hall, Mars Group bosses Mwalimu and Jayne Mati said the errors are some of the reasons why Treasury and the Executive were pushing Parliament to approve the Budget under the old constitutional dispensation.

The two have been on the forefront in scrutinising the national budgets since they exposed the Sh10.7 billion error in the supplementary Budget two years ago.

In the error pointed out to the committee members Elias Mbau (Maragwa), John Mbadi (Gwassi), Nelson Gaichuhie (Subukia), Alfred Sambu (Webuye) and Martin Ogindo (Rangwe), Finance Minister Uhuru Kenyatta had indicated a surplus of Sh87.3 billion, instead of a deficit of Sh163.8 billion.

The figures in the annex of estimates of revenues for state corporations presented to Parliament shows that there will be a total income of Sh610 billion.

Against this, the recurrent and capital expenditure comes to Sh774 billion. So instead of a surplus of Sh87 billion as indicated by the minister, there’s a deficit of about Sh163.8 billion

“What’s the reason, excuse for this variance? It is a simple issue just to take a calculator and find out that there’s a problem. Did the Treasury issue any explanation?” posed Mrs Mati.

“This committee needs to go through this entire Budget with a toothcomb and we are confident that you will do so.”

The shocking details reveal that Mr Kenyatta and his mandarins at Treasury went ahead and allocated Sh1.2 billion for the payment of KenRen fertiliser factory — which was never built — even after Parliament’s unanimous approval that the payments be stopped, because the country was being conned.

The MPs were taken aback when they saw that under the External Debt Redemption, the government had actually earmarked Sh372 million to be paid to the Austrian firm Bawag, for the fertiliser factory for the 2011-2012 financial year.

The amount then rises to Sh404 million in 2013 and to Sh437 million in 2014. “This sort of impunity is alarming. This sort of money is being introduced year in, year out,” Mr Mati told the committee.

“There’s a demand that you pay taxes, but we warn you that even your taxes may go missing.”