Ouko seeks help to audit CDF millions

What you need to know:

  • Auditor-general Edward Ouko noted that most of the questionable expenditure lacked supporting documents — and in some instances such evidence was provided late — or there was no proper justification.
  • Mr Thugge, while answering questions when he appeared before the National Assembly’s Public Accounts committee, insisted that in all the expenditures and revenue, the ministry followed expert advice from accountants and that no money had been lost.
  • Members of the parliamentary CDF committee have told the Auditor-General that they will not allow him access to the Sh200 million required to track down how money allocated to their constituencies is spent.

The auditor-general is holding onto hope that MPs will finally unlock funding to enable him to audit the Constituencies Development Fund (CDF).

But the odds seem stacked against the Kenya National Audit Office, with indications that the majority Jubilee MPs and the Executive are unhappy with recent revelations that Sh67 billion from the 2013/14 budget was unaccounted for, raising the possibility that the funds were lost.

Auditor-general Edward Ouko noted that most of the questionable expenditure lacked supporting documents — and in some instances such evidence was provided late — or there was no proper justification.

But National Treasury Principal Secretary Kamau Thugge denied that any money was lost, as the audit appeared to suggest.

Mr Thugge, while answering questions when he appeared before the National Assembly’s Public Accounts committee, insisted that in all the expenditures and revenue, the ministry followed expert advice from accountants and that no money had been lost.

“We have had meetings and I have even written to the Controller of Budget to furnish evidence and explanation on the matters you have raised. We are still waiting for the reports from accountants from line ministries,” he said.

PR DISASTER

The Sh67 billion question turned into a public relations disaster, prompting Jubilee politicians and bloggers to launch personal attacks against Mr Ouko.

Some MPs, including National Assembly Majority Leader Aden Duale, accused the Auditor General of playing politics, with some suggesting he was a supporter of Opposition leader Raila Odinga.    

In addition, Mr Ouko faces an even bigger challenge as the MPs supposed to approve government expenditures, including by his office, may be reluctant to unlock funding for fear that the audit will expose the rot in CDF management. 

“The CDF Act approved by MPs requires that each one must be audited. There are 290 CDF. With the current resources, I cannot guarantee that they will be audited unless the MPs instruct Treasury to give us a supplementary budget in September,” Mr Ouko told Sunday Nation.

Members of the parliamentary CDF committee have told the Auditor-General that they will not allow him access to the Sh200 million required to track down how money allocated to their constituencies is spent. The parliamentary committee, chaired by Eldama Ravine MP Moses Lessonet, told Mr Ouko to directly approach the Treasury for funds.

But Mr Ouko said that as things stand, the committee should take the initiative and lobby the National Treasury. “They can instruct through the chairman of Budget and Appropriations Committee, Mr Mutava Musyimi,” said Mr Ouko.

NOT RECIEVED REQUEST

According to Mr Musyimi, however, his committee has so far not received any request for a supplementary budget for the Auditor General.

“It is unfortunate that I am learning about it through the media,” said Mr Musyimi (Gachoka MP). Even then, he said, Parliament had allocated the Auditor General an additional Sh1 billion in the current financial year from Sh3.1 billion last year, “though this particular aspect of CDF was not specifically covered in the additional budget allocation.”

Management of CDF has in the past come under scrutiny over alleged mismanagement of millions of shillings, sometimes leading to court cases against MPs and constituency officials.

The latest involves Lamu West MP Julius Ndegwa, who was in June charged alongside four CDF officials with conspiracy to commit an economic crime and irregular re-allocation of funds, after investigation by the Ethics and Anti-Corruption Commission.    

The push and pull over auditing comes even as the fate of CDF, which was introduced in 2003 to boost development at the grassroots, remains in limbo since February after the High Court in Nairobi declared it unconstitutional.

The judges asked the lawmakers to correct the defective legislation within a year. MPs and the CDF board have come up with a draft Bill to repeal the CDF Act.