Central Bank accounts to be audited

Written By:O'brien Kimani,    Posted: Mon, Mar 19, 2012

The audit is to help unravel financial dealings between CBK and De La Rue (File Picture) The Parliamentary Public Accounts Committee has ordered the auditor general to audit the books of the Central Bank of Kenya. The Chair of the Committee Bonny Khalwale ordered the Ministry of Finance to provide the necessary support to the auditor general in order to expedite the process. The committee which was grilling senior treasury officials over the planned purchase of shares in the British currency printing firm De La Rue said the audit will help in un-raveling financial dealings between CBK and De La Rue. Acting Finance Minister Njeru Githae defended the deal saying it was passed by Cabinet late last year. The Parliamentary Accounts Committee is probing why the government gave the British firm De La Rue the exclusive currency printing rights in Kenya after entering into a deal that gave the government 40 percent ownership of the company without following the right procurement process. The committee is also looking into circumstances regarding cancellation of De La Rue's ten year contract to print Kenya's currency in 2003 before it was reinstated by the then Finance Minister Amos Kimunya. Acting Finance Minister Njeru Githae told the committee that the tender was reinstated in 2005 after an international tender was floated where De La rue emerged the winner. Treasury Permanent Secretary Joseph Kinyua told the committee that, since printing of currency is a sensitive job cabinet agreed to enter into a shareholding plan with the company where a new company was to be created where the government will hold 40 percent of the Ruaraka based company shares. Last year the Government admitted that it was involved in negotiations with money printing firm De La Rue Kenya with view to buying the company. According to the Cabinet paper that approved the deal, the government was supposed to pay $7.8 million for the 40 per cent stake in De La Rue's local subsidiary.