Eyes on President Kenyatta over security sector auditing

Auditing security agencies will be more difficult for the Auditor-General if President Uhuru Kenyatta assents to a Bill passed by MPs last week that tightens the rules governing investigation of the police, military and intelligence institutions.

MPs passed the Public Audit Bill, 2014 on Wednesday without removing contentious clauses that seek to restrict auditing of the agencies.

The Bill, now awaiting the President’s signature, had to be taken through mediation after the Senate and National Assembly differed over the contentious clauses.

The two houses differed bitterly over a clause that required the auditor to hold an “inception meeting” with heads of the agencies to decide on the scope of the audit.

While MPs pushed for the retention of the clause, their Senate counterparts proposed its deletion. After mediation, it was retained despite protests by the senators.

Further, officers assigned to audit the agencies would have to be vetted “appropriately”, by a body to be clarified later by the auditing regulations, before getting into the premises of the agencies.

The security agencies are the Kenya Defence Forces, National Intelligence Service and the National Police Service.

UNDERMINE AUDITING

Senators expressed their dissatisfaction with the failure to remove the restrictive clauses they said could be used to undermine auditing of the organs.

The lawmakers said the auditor could be easily sent away with a basic argument of “sensitive information”.

They said the law was not clear about who was to vet auditors before they embarked on looking at financial accounts of the agencies.

The senators said it was necessary to specify the officials to safeguard against abuse of the provision in the Bill that provides for the vetting.

Senate Minority Chief Whip Johnstone Muthama (Machakos, Wiper) and Mutula Kilonzo Jr (Makueni, Wiper) said the vetting agency should not be left to anybody within government as such a provision is prone to abuse.

The Bill originated in the National Assembly and is one of those that had a constitutional deadline of May 27, after the original deadline was extended by nine months.

Others were the Public Procurement and Disposal Bill, Fair Administration Action and the Environment Management and Co-ordination (amendment) Bill.

Both Houses endorsed the mediated Audit Bill meant to strengthen the Auditor General’s office both financially and functionally.

Mr Kilonzo Junior also said it is important to provide an alternative in the event there is a disagreement during the vetting to avoid a situation where the auditors would have no fall back plan.

Senator James Orengo (Siaya, ODM) observed that cases of corruption have in the past been unearthed in the national security sector and warned against legislation that would make it difficult for the Auditor-General to expose the same.

“We can easily compromise the independence of the Auditor General. We don’t want a legislation that is subsidiary to the Constitution,” said Mr Orengo.

Senate Finance Committee chairman Billow Kerrow (Mandera, URP) said it is a normal practice in most countries to vet staff auditing security installations owing to the sensitivity of the equipment.

“The mediation committee was keen to correct the impression that the vetting would be undertaken by the same institution to be audited. This is not the position,” said Mr Kerrow who was a member of the mediation committee.

However, he said in most cases, it is the National Intelligence Service (NIS) that carries out the vetting.

Other members of the committee that brokered the mediated version were Senators Stephen Sang’ (Nandi, URP) and MPs Benjamin Langat (Ainamoi, URP), Johnson Sakaja (Nominated, TNA) and Benson Mulu (Kitui Central, Wiper).

The inception meeting as indicated in the proposed law will be held to ensure sensitive information on security matters is not exposed to unauthorised personnel.

The mediated Bill also enables the auditor to forward its budget estimates straight to the National Assembly without being tampered with by the Treasury.

The Treasury will, however, offer guidance to the Budget and Appropriations Committee in the preparation of the national estimates.

POWERFUL CS

This, the legislators said, is meant to enhance the independence of the office of the Auditor General as opposed to the original version of the Bill that gave the Cabinet secretary powers to effect changes on their budget.

“Treasury Cabinet Secretary had been given a blank cheque to change the report from the Auditor-General yet such powers can affect their objectivity when carrying out the audit functions,” Mr Kilonzo said.

He said the Auditor-General must be given a free hand to choose qualified staff who can enhance service delivery, and have his budget approved by Parliament without interference from the Cabinet secretary.

The senators also accepted the position taken by the MPs that there is no need for the auditor to be a Master’s degree holder.

“We agreed to do away with the post-graduate degree requirement for this position going by previous history. A degree in finance or accounting with requisite knowledge in the area, is enough,” said Mr Kerrow.