Sh8b 'missing' at Interior ministry

Auditor General Edward Ouko

An auditor’s query at the Interior ministry has exposed unexplained expenditures running into billions of shillings.

Auditor General Edward Ouko has questioned the more than Sh8 billion suspicious cash deposits. The cash transfer to call depo

it at INSTB, fixed deposit at INSTB, Euro call deposit and USD call deposit accounts are in total contravention of the Finance Management Act, which require Cabinet approval in line with the National Treasury recommendations.

“Repayments, interest and proceeds received from the bank into this account is Sh4.2 billion, leaving a balance of Sh8.5 billion,” inquired Mr Ouko in reference to Sh12 billion audit query.

Another Sh8 billion deposited at a local bank between 2013 and 2017 January further exposed the suspicious financial activities at the ministry.

The report tabled in the National Assembly by Leader of Majority Aden Duale (Garissa Township) censured the ministry after Ouko cited irregular procurement of air tickets and goods, fictitious entry in store records, irregular procurement of motorcycles, unlawful cash withdrawals, unaccounted cash transfers and falsification of records among others.

There is Sh8.7 billion in irregular use of 42 letters of credit by the ministry and incomplete bank statements worth Sh340 million.

The report disclosed fictitious entry in store records and noted that blank passports valued at Sh133 million were issued by Immigration Department to Kenyan missions in Washington DC, London, Berlin and Pretoria but they were not recorded in counter receipt book registers as required by public finance law.

Stores ledger

“The audit has established that information disclosed on stores ledger and stock control for shoes (S3 card) A241223 has been fraudulently falsified as the same card number discloses different information on April 19, 2016 and May 31, 2017,” Ouko said.

“Examination of stores card numbers A241057 and A268592 reflects unexplained increase of 5,000 and 2,000 pairs of footwear respectively. The source of these receipts have not been indicated or explained.”

Worse still, the much hyped police insurance scheme may be a ‘white elephant’ after the auditor revealed he could not ascertain its legality.

According to Ouko, there was irregular payment of Sh3.5 billion arising from irregular award of a contract to a private firm for provision of the comprehensive Group Life Insurance cover to the police.

The contract number is NPS/002/2014/2015.

In his report for the year ended June 30th, 2016, he paints a sorry state of affairs at the ministry where documents availed for audit could not satisfactorily account for the expenditure.

“The State department of Interior did not avail payment voucher no. 391 for Sh147.2 million together with assessment report on the performance of the insurance. In addition, other provisions of the contract which include guarantee, letter of acceptance, notification of awards, performance bond, nature and scope of the cover did not comply with the law, ” Ouko stated.

“In view of the forgoing, I am not able to confirm that the payment was lawful and effective as required by the Constitution.”

The procurement of twin turbine engine Very High Profile (VIP) carrier helicopter amounting to Sh2.3 billion has also been questioned by Ouko after the ministry termed the process as classified.

Taking into account the fact one of the helicopter has been involved in an accident, it was important to ascertain the purchase details.