AG’s office on spot for loss of Sh572 million

Attorney-General Kihara Kariuki. [Courtesy]

Taxpayers may have lost more than half a billion shillings at the Office of the Attorney General, a new audit report has revealed.

The money was meant for five state agencies under the State Law Office.

The report indicates that the State Law Office had reported transferring Sh2.4 billion to 11 government entities.

But five of the institutions later reported that they did not receive their full allocations, putting Attorney General Paul Kihara on the spot.

The report for the year ending June 30, 2019 shows the AG’s office transferred Sh370,566,800 to the Council of Legal Education. The institution, however, confirmed only receiving Sh210,464,800, occasioning a variation of Sh160,102,000.

Kenya School of Law got Sh289,898,200 instead of Sh562,298,200 that the State Law Office said it had wired to the entity, the report shows.

Kenya Copyright Board received Sh121,580,000 instead of Sh124,580,000 while Business Registration Service got Sh176,424,131 instead of Sh312,914,993 reportedly transferred to them.

National Centre for International Arbitration, which was to receive 113,415,500 only got Sh113,415,400.

“Note 5 to the financial statements show a total of Sh2,409,719,913 was transferred to 11 entities during the year under review. However, confirmations from the beneficiary institutions as reflected variances of Sh571,992,962 from five institutions,” states the report by Auditor General Nancy Gathungu.

“In the circumstances, the accuracy of transfers to other entities of Sh2,409,719,913 for the year ended June 30, 2019 could not be confirmed,” says the report tabled in the National Assembly.

The AG’s office is further on the spot over millions of shillings splashed on leasing of regional offices. The report shows that there was no reconciliation between the amounts payable and actual payments for the leased premises, raising queries over the expenditure.

“The statement of receipts and payments reflect an expenditure of Sh870,125,594 underuse of goods and services which, as disclosed at Note 4 to the financial statements, includes an amount of Sh103,490,681 incurred on rentals of produced assets,” states the report.

Audit verification

It adds: “However, no reconciliation between the amounts payable and actual payments for the leased premises was availed for audit verification. Further, included in the total expenditure of Sh870,125,594 underuse of goods and services is an amount totaling to Sh84,273,146 incurred in regional offices.”

Further, lease agreements for offices rented in Malindi, Meru, NSSF Mombasa, Cooperative House and Embu were not fully executed and registered with the Ministry of Public Works in line with Section 47 of the Registered Land Act Cap 300.