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Secret bank account that Uhuru used to spend Sh8bn

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A new audit report has unearthed how the Presidency is blowing up billions of shillings in unaccounted-for, confidential expenditures. It also shows how the Interior ministry has operated secret accounts, contrary to the law, through which over Sh8 billion has been siphoned off since Jubilee rode to power in 2013.

Auditor General Edward Ouko reveals that in the 2015/2016 financial year, the Presidency spent Ksh 1,106,009,855 in secret expenditures, slightly higher than the Ksh 937 million and Ksh 685 million incurred in the previous two financial years, respectively.

The Presidency brings together the executive offices of President Uhuru Kenyatta and Deputy President William Ruto.

Overall, the explosive report indicates that the Jubilee administration cannot account for Ksh 40.2 billion in the 2015/2016 financial year. The report indicates that the government has over Ksh 20.5 billion in pending bills, signalling the troubles that government suppliers could be going through.

The Interior ministry operated a mystery account —  No.1109896077 at KCB, Moi Avenue Branch — though which it transacted over Ksh 8.7 billion without the authority of the National Treasury as required by law.

Curiously, the powerful ministry does not maintain a cashbook, bank reconciliations and related payment records in support of the numerous cash withdrawals and deposits.

READ ALSO: Billions of corruption money returned

Ouko has accused the ministry of deliberately concealing bank balances of the mystery account to the auditors. The Auditor General singles out Ksh 12.7 billion that the ministry wired out from the account into four separate deposit and investment accounts.

These accounts are: Call Deposit at INSTB, Fixed Deposit at INSTB, Euro Call Deposit and USD Call Deposit Accounts.

However, Ouko protests that the moves were made without prior approval by the Cabinet based on recommendations from the National Treasury. “In addition, repayments, interest and proceeds received back to the account are Ksh 4,211,839,878, resulting in unaccounted-for balance of Ksh 8,476,957,081,” the report states.

The report also puts the immediate former Director of Criminal Investigations Ndegwa Muhoro on the spot for an unexplained loss of Ksh 193 million cash from Police Clearance Certificates.

Ouko has also confirmed most details of the infamous Afya House scandal that rocked Uhuru’s administration in 2016 that was estimated at Ksh 5 billion.

The report confirms that the Ministry of Health paid Ksh 800 million for the procurement of some 100 portable clinics before they were installed, commissioned and handed over.

READ: Like in milk sector, is Kenyatta family plotting a media chokehold?

The auditor has termed the move a flagrant violation of the contractual agreement.

It further exposes a syndicate in which some 2,213 computers for public secondary schools valued at Ksh 153.8 million cannot be accounted for.

According to the 2015/16 audit report, the statement of receipts and payments for the year 2015/16 showed that the ministry bought 3,320 computers for public secondary schools at a cost of Ksh 230.7 million.

However, auditors found out that the list of the serialised computers provided reflected 921,107 computers, resulting in the variance.

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