PAC wants Juma and Thugge probed over misuse of public funds

A parliamentary committee wants the Directorate of Criminal Investigations (DCI) and the Ethics and Anti- Corruption Commission (EACC) to investigate Foreign Affairs Cabinet Secretary Monica Juma and Treasury Principal Secretary Kamau Thugge over the misuse of public funds under their watch.

SH1.75 BILLION

The National Assembly's Public Accounts Committee (PAC) wants Dr Juma held accountable for the irregular award of a Sh1.75 billion tender for the provision of comprehensive group life insurance cover for the police and prisons services when she was Interior PS.

Dr Thugge is on the spot for making the government lose Sh136.4 billion in uncollected taxes, contrary to the Tax Procedures Act, which says the Treasury PS must ensure that taxes and revenue arrears are collected and accounted for.

2014/15 FY

The details are contained in the PAC report based on the Auditor-General Edward Ouko's report on the national government’s financial statements for the 2014/15 financial year, tabled in the House yesterday.

The committee chaired by Ugunja MP Opiyo Wandayi has directed the EACC and DCI investigate the procurement of the insurance scheme.

EVALUATION

“Much as the provision of the insurance cover was required, the accounting officer (PS) erred and did not adhere to the provisions of the Public Procurement and Disposal Act, 2005. She should, therefore, be investigated with a view to being prosecuted, if found culpable,” the report says.

Dr Juma is accused of introducing a new criterion during the evaluation and comparison of tenders, and cancelling the tender with the lowest bid, contrary to the procurement law and the Public Finance Management (PFM) Act of 2012.

AUDIT REVIEW

The PAC also established that the Interior ministry did not submit the minutes of its tender committee's meeting to support its award of the tender for audit review.

“The Committee was not able to verify that the award of the contract complied with the procurement Act,” the report says.

In addition, the PAC wants Dr Thugge reprimanded for accumulating pending bills worth Sh632.3 million.

EFFICIENT

The report cites the PFM Act, which mandates the Treasury to ensure proper management and control of, and accounting for, the finances of the national government and its entities to promote efficient and effective use of budgetary resources.

Mr Thugge is also accused of not managing imprests and ensuring that the Sh3.3 outstanding ones were surrendered on time. According to the PFM Act, the they should have been recovered or accounted for on or before June 30, 2015.

ANOMALY

But not reasons have been given for this anomaly.

The committee also wants the Cabinet Secretary for the National Treasury to prepare and submit to the Auditor-General for review and subsequent reporting to Parliament a comprehensive statement on tax waivers, exemptions, interest and penalties written off or abandoned since 2014, within three months of the adoption of this report.

RECEIPTS

The committee further wants Mr Ouko to conclude investigations into the receipts, accounting and use of the Sh250 billion Eurobond funds realised in the 2013/14 financial year and submit a report to Parliament within three months of the adoption of the report.

POLICE VEHICLES

The Auditor-General has also been directed to undertake a comprehensive performance audit of the Sh17.7 million police motor vehicle leasing project in 18 counties to determine whether the government is getting value for money.

The presidency has also been accused of irregularly paying Sh88, 826,396.00 to a contractor for the construction of a mechanical workshop and petrol station at State house that had stalled.