Ouko questions Sh8bn expenditure by Treasury

The National Treasury is on the spot over Sh8.2 billion it has failed to account for, according to a report by Auditor-General Edward Ouko. The report for the year ending June 30, 2019 tabled in the National Assembly shows the unaccounted-for money was part of the Sh40.3 billion in grants and transfers to other government entities by the ministry headed by Cabinet Secretary Henry Rotich.

TRANSFERRED

The report further shows although Sh34.1 billion is claimed to have been disbursed to Semi-Autonomous Government Agencies, only Sh25.9 billion is recorded as having been received by the respective entities.

“As a result, the accuracy of the grants and transfer cannot be confirmed,” Mr Ouko says in the report.

For instance, Sh2.6 billion is claimed to have been disbursed to the Kenya National Bureau of Statistics, but Sh2.4 billion is the amount recorded in its books. About Sh29.8 billion is said to have been transferred to the National Government-Constituency Development Fund, but Sh21.9 billion was recorded to have been received while Lake Basin Development Authority is claimed to have been given Sh356.1 million but only Sh337.7 million is recorded in its books.

It was the same case with Ewaso Ngiro North Development Authority, which is said to have received Sh268.4 million but Sh333.2 million is recorded in its books, Tana and Athi Rivers Development Authority is claimed to have received Sh476 million, but Sh345 million is recorded.

Ewaso Ngiro South Development Authority has Sh522.4 billion as disbursed by the ministry, but its records show Sh572.4 million as the received money.

ASSESSMENT

The failure by the ministry to account for the money comes as Mr Ouko questioned Sh4.5 billion in unsupported advance payment for the Arror multipurpose dam development for the period under review.

Out of the money, Sh4.3 billion was paid to CMC Di Ravenna, an Italian firm, as an advance payment for the construction of the dams, although the company filed for bankruptcy in its home country, meaning it could not proceed with the construction.

The balance of Sh234.3 million was in unsupported payment for Sigor Wei Wei integrated development project.

The issues flagged by Mr Ouko on the Arror dam project include lack of an environmental impact assessment report.

“The agreement between the affected community and the Kerio Valley Development Authority had not been confirmed and, therefore, the viability of the project is in doubt,” Mr Ouko said of the Arror project.

According to Mr Ouko, the contract awarding the works was signed on April 5, 2017, seven months outside the validity period of the memorandum of understanding, but no fresh bids were sought.