Devolution Cabinet Secretary Anne Waiguru on the spot following fresh revelations by the Auditor General about Sh8 billion financial irregularities in her ministry.
In a report by Auditor General Edward Ouko, Waiguru’s docket is accused of failing to account for expenditure in projects and unauthorised lending. Waiguru, who has been on the receiving end over alleged financial scandals at the National Youth Service (NYS), is accused of having transferred Sh1.9 billion to county governments, an expenditure, which had not been budgeted for.
The report comes at a time when the Opposition, led by Cord leader Raila Odinga, have been calling on Waiguru to step aside after an “attempt to swindle” more Sh800 million from NYS through the IFMIS system was uncovered. But Waiguru has dismissed the claims, saying she is the one who stopped the fraud and there is no reason for her to step aside.
State House has also said Waiguru cannot leave office because she is not under investigation. During the year under review 2013/14, the ministry acquired non-financial assets without disclosing the various classes to the tune of Sh8 billion against a budget of Sh11.3 billion, resulting in an under expenditure of Sh3.3 billion, the report showed.
Ouko said supporting payment vouchers for the assets were not provided, including a summary of fixed assets register. The Auditor General further wants Waiguru to clarify why the financial statement of NYS Mechanical and Transport Fund (MTF) reflects Sh2.2 billion under non-current assets made up of Sh834 million for commercial trucks, Sh166 million for small vehicles and Sh1.2 billion for plant and machinery, has not been re-valued while others have not been depreciated.
“The Ministry, therefore, did not adhere to the budget provisions and no explanations and mitigating measures were provided. Consequently, the propriety of the amount could not be confirmed,” he said.
Ouko said Planning ministry officials did not provide enough reasons why they failed to provide details on their failure to re-value and depreciate the assets. Ouko has also queried the ministry’s move to transfer Sh2.8 billion to other government entities, which were not budgeted for.
According to Ouko, for instance, the transfer to the Ministry of Land has not been supported and therefore the funds cannot be confirmed. He faulted the CS over unauthorised lending for the NYS-MTF, where Sh124 million was borrowed from the Fund Account No. 1128674548 at Kenya Commercial Bank, Moi Avenue by the Ministry.
Suspiciously, the money was not refunded to the mechanical and Transport Fund by 27 April 2015. “It appears there is no documented policy or authority given to borrow from the Fund,” the report reads. Ouko further observes that the Fund had by the year ending June 30, 2014 lost over Sh138 million down from Sh157 million in 2012/2013.
“Further the Fund reported uncollected debts comprising of domestic debts of Sh149,918,976, commercial debts of Sh671,153,508 and borrowings of Sh124,600,00 by the Ministry,” Ouko reports.
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