Sh300bn loss linked to fraud
PHOTO | FILE Auditor-General Edward Ouko (second right) leads his team in presenting his budget to the PSC on budget on June 4, 2013.
What you need to know:
- The report reveals that expenditure totalling Sh131,066,524 out of Sh181,250,065 incurred on Other Expenses could not be confirmed
- About Sh4 million could not be accounted for during the construction and refurbishment of State lodges and State House buildings in Nairobi and Mombasa
Extravagance, fraud and long outstanding balances in government expenditures are among key issues that led to the loss of billions of shillings during last year’s financial year, a report by the Auditor-General reveals.
The report was tabled before a special session in the National Assembly on Tuesday and revealed that a third of the government’s expenditures could not be accounted for due to unsupported evidence.
State House, for instance, used over Sh145 million for fuel, oil and lubricants, while over Sh1 million paid subsistence allowances to State House staff.
MOTOR VEHICLES
State House also used over Sh44 million in buying and repairing motor vehicles.
According to Auditor-General Edward Ouko, the Sh13,574,804 used in the repair of vehicles should have been charged under Routine Maintenance of motor vehicles and other transport equipment.
“No explanation has been given for the unauthorised reallocation of funds,” the report reads.
The report also reveals that expenditure totalling Sh131,066,524 out of Sh181,250,065 incurred on Other Expenses could not be confirmed due to absence of vouchers and inadequate documentation such as supplier’s invoices.
The report also revealed that State House had long outstanding debit and credit balances totalling Sh48,007,208 and Sh61,116,860 respectively.
“No explanation has been provided for failure to clear the long outstanding balances from the department’s records,” the report said.
About Sh4 million could not be accounted for during the construction and refurbishment of State lodges and State House buildings in Nairobi and Mombasa.
In the Ministry of Foreign Affairs, bills amounting to more than Sh79 million were not paid during the financial year 2011/2012 and were instead carried forward to 2012/2013.
“Had these bills been paid and the expenditure charged to the accounts of 2011/2012, the Appropriation account would have recorded a reduced net surplus of Sh122,283,888.45 instead of an amount of Sh201,357,341.35 now shown,” the report read.
