POLITICS AND POLICY

Waiguru’s ministry fails to account for Sh3.2bn bills

SHARE BOOKMARKPRINTRATING

Ms Anne Waiguru, Devolution and Planning secretary. PHOTO | FILE 

By EDWIN MUTAI, emutai@ke.nationmedia.com

Posted  Tuesday, July 14  2015 at  23:05

IN SUMMARY

• The ministry reported pending bills worth Sh1.1 billion but the list provided for audit totalled Sh4.2 billion, resulting in a difference of Sh3.2 billion.
• No explanation was given for the difference between the two figures.
• Ms Waiguru has in recent weeks been under intense pressure following revelations of attempted theft of Sh826 million from the NYS account.

The Devolution and Planning ministry is in the eye of a new storm after the auditor-general submitted a report to Parliament showing it had acquired non-financial assets worth Sh8 billion without supporting documents indicating when payments were made, amounts involved and the purpose of the procurements.

Edward Ouko, the auditor- general, has also unearthed a Sh3 billion variation between the value of pending bills the ministry declared and the actual register that the auditors reviewed, putting Cabinet minister Anne Waiguru under the spotlight.

The ministry reported pending bills worth Sh1.1 billion but the list provided for audit totalled Sh4.2 billion, resulting in a difference of Sh3.2 billion. No explanation was given for the difference between the two figures.

“In addition, important details such as account charged and current status are not included,” Mr Ouko says in a qualified audit opinion on the ministry’s accounts for the year ending June 2014.

Mr Ouko further says that the department failed to provide a register for pending bills, making it difficult to ascertain their accuracy.

The ministry also failed to prepare a summary of fixed assets register, making doubtful the ownership, existence and location of its fixed assets.

The audit report, which Leader of Majority Aden Duale tabled in Parliament last week, also shows that the ministry acquired non-financial assets worth Sh8,036,371,566 against a budgeted figure of Sh11,372,218,703, resulting to an under expenditure of Sh3,335,487,137.

Ms Waiguru has in recent weeks been under intense pressure following revelations of attempted theft of Sh826 million from the National Youth Service (NYS) account.

Last week, the minister told a chaotic joint meeting of the National Assembly’s Finance and Labour committees that no money was lost in the transaction that was detected in the second of the 25 process Integrated Financial Management System (IFMIS).

READ: MPs clash as Waiguru is grilled over NYS hack scam

Ms Waiguru said that out of the Sh826 million that was processed for payment, Sh133.2 million had been ascertained as valid, having been certified for payment by the accounting officer in the ministry (the principal secretary).

Sharply divided committee members turned the hearing chaotic, leaving little room for pursuit of the truth.

The matter has since been taken over by the Public Accounts Committee, which has ordered a forensic audit into the NYS accounts.

Mr Ouko’s latest audit report also raises questions on the award of a tender for the construction of apartments at NYS vocational training institute in Industrial Area at an estimated cost of Sh49.1 million.

The auditors found that the contract between the ministry and the contractor was signed on February 22, 2013 and the project estimated to take 52 weeks from April 8, 2013.

http://www.businessdailyafrica.com/Waiguru-ministry-fails-to-account-for-Sh3-2bn-bills/-/539546/2789220/-/10780urz/-/index.html