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Auditor: Ksh67bn of government money can’t be traced

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Auditor General Edward Ouko has released a damning report showing financial impropriety in the National Government during the first year of President Uhuru Kenyatta administration.

The 2013-2014 financial audit shows that several ministries and departments did not follow the regulations issued by the Public Sector Accounting Standards Board of Kenya in compliance with Section 83 of the Public Finance Management Act 2012, Tuko reports.

Out of the audited 101 financial statements, only 26 financial statements, or 26%, had a clean (unqualified) audit opinion, 50 had qualified audit opinion, 16 had an adverse opinion while nine 9 had a disclaimer of opinion, according to the report.

Mr Ouko says only Ksh12,581,506,707 (1.2%) of the total Ksh1 trillion National Government’s budget was spent in an effective way. The auditor spotted discrepancies in how Ksh600 billion (60%) was spent while there were no documents to verify whether or not the remaining  Ksh390 billion was spent in line with the law.

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The financial statements availed for auditing by the institutions indicated unauthorised expenditures, excess, unsupported expenses or lack of adequate disclosures. The National Government might have lost Ksh66.7 billion as 17 institutions that failed to produce relevant documents to support their expenditure during the 2013/2014 financial year.

Here are the ministries, departments, commissions and funds that could not account for their expenditures:
1. Ministry of Health – KSh 22,500,344,808
2. Ministry of Transport and Infrastructure – KSh 22,050,510,900
3. Ministry of Education, Science and Technology – KSh 12,826,647,906
4. Office of the Attorney General and Department of Justice – KSh 2,705,850,667
5. Ministry of Energy and Petroleum – KSh 2,408,723,869
6. Ministry of Foreign Affairs – KSh 1,456,170,114
7. Ministry of Agriculture, Livestock and Fisheries – KSh 1,289,737,385
8. The Judiciary – KSh 463,366,769
9. Ministry of Industrialization and Enterprise Development – KSh 300,000,000
10. Government Press Fund – KSh 271,742,000
11. National Humanitarian Fund – KSh 142,667,974
12. Teachers Service Commission – KSh 128,392,939
13. Witness Protection Agency – KSh 79,358,109
14. Ministry of Defence – KSh 74,237,939
15. National Police Service Commission – KSh 59,846,608
16. Ministry of Environment, Water and Natural Resources – KSh 15,900,000
17. Commission for the Implementation of the Constitution – KSh 9,200,000

Fourteen other institutions are said to have overspent during the year under review money totalling Ksh24,566,651,642.

NEXT READ: NACADA TOP MANAGERS SUSPENDED OVER CORRUPTION

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BUSINESS TODAY -

editor [at] businesstoday.co.ke

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