The money was spent during former President Mwai Kibaki’s regime. Photo/FILE.
In a report submitted to the National Assembly, Auditor General Edward Ouko says this is due to weak and inadequate maintenance of accounting records in ministries and departments during the year, as well as poor management of imprests and expenditure without the approval of Parliament.
The report which was tabled in the House on Thursday indicates that out of Sh813,222,666,210, the total revenue recorded during the 2012/13 financial year, only Sh11,266,757,66 (1.38 per cent) was fairly recorded while revenue amounting to Sh801,955,908,550 (98.62 per cent) had no proper records and could not therefore be confirmed as accurately reported.
“In the absence of the records and documentation, the propriety of the expenditure of the funds could not be ascertained and therefore these public funds may not have been utilized lawfully and in an effective manner,” Ouko says in the report on the appropriation accounts, other public accounts and accounts of public funds.
Maintenance of cashbooks across the ministries was noted to be weak.
“Bank reconciliation statements for recurrent, development, deposits and fund continued to reflect material receipts and payments and cashbooks not reflected in the bank statements and also receipts and payments in the bank statements are not reflected in the cashbooks,” read the Auditor’s report.
The Sh337 billion comes from some 130 financial statements with adverse and disclaimed opinions.
An adverse and disclaimed from the Auditor General means that the statements were materially misstated and he could not establish whether the money was spent lawfully and effectively.
The Auditor General’s report has now been referred to the Public Accounts Committee where each ministry will be invited to answer the queries raised.
The report noted that State House failed to avail supporting documents of various expenditures totaling over Sh150 million.
Other ministries that could not avail records to back huge expenditures include Ministry of Education with Sh6.7 billion and the Ministry of Higher Education with Sh4 billion.
Commission on Administrative Justice had the least amount of money allegedly spent without documentation, at only Sh3.1 million.
The report notes that had the bills totaling Sh4.6 billion been settled during the period and the expenditure charged to the accounts for 2012/2013 year, 16 ministries and departments would have recorded excess expenditure against recurrent and/or development votes.
The audit of temporary imprest revealed balances which ought to have been recovered or accounted for, on or before 30 June 2013, but were still outstanding as at the date amounting to Sh633 million.
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