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An audit report has revealed that the Ministry of Health spent an additional Sh24 billion without the approval of Parliament as is required by law.
According to the Office of the Auditor General, the ministry's accounting officers also failed to explain the source of the extra funds during the audit review for the financial year 2013-2014.
The report has it that the ministry's statement of receipts and payments reflects total expenditure of Sh56,676,116,490 against the approved sum of Sh23,936,714,036 resulting to an excess vote of Sh24,039,402,454.
The report prepared by the Auditor General Edward Ouko further revealed that the ministry irregularly authorised the Medical Superintendent of Mama Lucy Hospital to spend Sh99,490,000, which was never accounted for because there were no supporting documents.
"No expenditure returns have been availed for audit verification in support of this expenditure," said the report.
The auditors further queried why the national government (Ministry) had to meet this cost as health is a devolved function.
But what puzzled the auditors most is that although the ministry sought approval from the national treasury, no evidence was given for audit review.
Against law
"This action contravenes Section 43(1) of the Public Financial Management Act, 2012, which prohibits reallocation of funds from one Government Entity to another," states the report.
The auditor further queried the decision by the ministry to carry forward to 2014-2015 financial year pending bills totaling Sh2.1 billion.
The report notes that had the bills been paid, and the expenditure charged to the account for 2013/2014, the statement of receipts and payments for the year would have reflected an increased deficit of Sh2,671,062,603 instead of Sh505,693,961.
The ministry headed by James Macharia is further on the spot over expenditure on non-existence consultancy services for reinforcement of 15 health facilities in Northern Kenya.
According to the report, the project was conceptualised through an MoU of June 17, 2010 and Grant Agreement of August 30, 2011 between the Government of Netherlands and the Government of Kenya.
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