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The Auditor-General presents the best chance for Parliament’s redemption
What you need to know:
- It is not surprising that the both the executive and judicial arms of government have little affinity for the Office of the Auditor-General.
- Public budgets in Kenya are rendered in the form of programme budgets, but reports on past expenditures don’t cover the achievements from funds Parliament previously approved for spending.
- Parliament needs to be able to trace the flow of funds and detect duplication, appreciate new risks and ensure that transparency in public finances is maintained.
- Parliament’s best bet is to equip this office with operational autonomy by forcing its independence from the Treasury and funding its activities to enable Parliament to shine.
My last post was a direct response to the cynical, uninformed commentators who argue that devolution is a real threat to government solvency.
It cited authoritative reports by Kenya’s Auditor-General that show that the national government has long been a poor steward of public finances.
Kenyans often wonder why such an important office has a far lower public profile and recognition by Parliament than other departments in the public sector. The obvious answer is based on my observation that the amount of spending on advertisement and public relations in Kenya’s public sector correlates negatively with real performance.
It is not surprising that both the executive and the judicial arms of government have little affinity for the Office of the Auditor-General. This is primarily because this officer records numerous instances of gross misallocation, wastage and outright embezzlement that are unpleasant for officers in the Executive to acknowledge and control.
However, the primary paradox is that the legislature that has defended its rights to a share of the budget has neither elevated the profile nor facilitated the work of the Auditor-General.
The ongoing failure by Parliament to support the Auditor-General remains a strategic blunder. Its effectiveness in responding to financial mischief in the Executive would be vastly improved if it acted seriously upon the clear findings stated in these reports.
For instance, it is evident that there is a systemic weakness in the issuance and management of travel allowances in the public sector, but in some departments and ministries more than others.
This finding presents the legislature with a clear case for withholding funds from departments in violation, in order to ensure that accounting officers respond in the coming year. Such a move would increase the effectiveness of Parliament’s oversight a great deal and earn it considerable public approbation.
DETECT DUPLICATION
Parliament should consider the Office of the Auditor-General as its most important partner in governance because it enables Parliament to understand the development effects of approved budgets.
Public budgets in Kenya are rendered in the form of programme budgets, but reports on past expenditures don’t cover the achievements from funds Parliament previously approved for spending. The best chance for Parliament to assess the accomplishments of the huge budgets that they pass every year is through a detailed interaction with the reports of the Auditor-General.
That Parliament continues to approve budgets year after year without this close knowledge puts it at a disadvantage in conducting proper, effective oversight. The reports of the Auditor-General should be seen as an effective way of reducing the asymmetry of knowledge that favours the Executive to the detriment of Parliament.
The nature of Kenya’s public sector changed dramatically after the promulgation of the Constitution. The number and complexity of institutions dependent on public funds has grown.
Parliament needs to be able to trace the flow of funds and detect duplication, appreciate new risks and ensure that transparency in public finances is maintained. Here, too, it is impossible for the legislature to perform its functions as representatives of taxpayers without a dispassionate guiding hand.
INDIVIDUALS RESPONSIBLE
In many cases, repeat failures in the management of public funds are directed by a small but powerful set of individuals in the public sector. By paying attention to the reports from the office, legislative committees would be able to request that individuals responsible for the most egregious violations be identified, and compel the Cabinet secretaries to ensure that they are removed from public service.
This, in turn, would send the signal that Parliament will hold all individuals personally responsible and call out specific officers cited for abuse of office and misappropriation of public funds.
The problems that persist in the public sector regarding management of funds are undoubtedly huge. It is evident from the example of the lonely office of the Auditor-General that Kenya’s legislature has not recognized this office as its best friend, and has not improved resource allocation to it as a demonstration of parliamentary resolve to drastically reduce the leakage of public funds in all arms of government.
Parliament’s best bet is to equip this office with operational autonomy by forcing its independence from the Treasury and funding its activities to enable Parliament to shine. In fact, this is a matter of far greater urgency to the legislature than according itself more powers and privileges.
Kwame Owino is the chief executive officer of the Institute of Economic Affairs (IEA-Kenya), a public policy think tank based in Nairobi. Twitter: @IEAKwame
