Mudavadi puts all parastatals on notice with new inspectorate boss

Prime Cabinet Secretary Musalia Mudavadi speaking in Nairobi during the unveiling of the TSC 2023-2027 strategic plan. [Denis Kibuchi, Standard]

Over eight months after being sworn in, Prime Cabinet Secretary Musalia Mudavadi has announced a raft of measures that include wayward parastatals and State corporation chiefs taking personal responsibility for some decisions made as he seeks to tighten the noose on corrupt government officials.

Mudavadi's tough actions include the appointment of an acting Inspector General (Corporations) to ensure the effective running of State-owned firms and safeguarding public funds.

Mudavadi said the new Inspectorate of State Corporations (ISC) domiciled in his office will undergo a comprehensive revamp and rejuvenation to strengthen its capacity to take a more active role in combating corruption and misappropriation of funds in State corporations.

"Out of the total pending bills amounting to Sh481 billion, a significant portion of Sh401 billion is owed by State corporations and Semi-Autonomous Government Agencies.

This glaring disproportion raises concerns about the blatant breaches and disregard of applicable laws by some State corporations," said Mudavadi.

The above actions, he said should serve as a warning to all personnel who may be tempted to engage in corruption or misuse public funds.

Force of the law

Mudavadi said the new ISC boss will help identify and expose any impropriety, ensuring that those responsible face the full force of the law.

In October last year, President William Ruto in an executive order made Mudavadi the third most powerful government official, where he was mandated to oversee the government projects, and coordinate the national legislative agenda, in liaison with the Ministry responsible for Interior and National Administration, oversee the implementation of State policies, programmes and projects.

Mudavadi would also coordinate and supervise the technical monitoring and evaluation of government policies, programmes and projects across ministries and perform any other function as may be assigned by the President.

In a tough letter to the institutions seen by The Standard, Mudavadi said mismanagement, graft and pilferage of funds meant to change the lives of Kenyans cannot continue to be squandered, warning that the state of affairs was untenable and cannot be allowed to persist.

In a raft of measures that seek to streamline its operations, Mudavadi has instructed the newly appointed acting Inspector-General of Corporations James Warui, to ensure the effective running of corporations, adding that safeguarding public funds is not an option under his watch.

Mudavadi warned that the government expects that ISC will not second guess itself in fighting corruption, wastage and misuse of public resources.

He noted that his move is part of the revamp and rejuvenation of the ISC to tackle graft and misappropriation of public funds in State corporations.

"To this end, Mr Warui has my undivided support, and indeed that of the government, in shaping and rebuilding the capacity of ISC in safeguarding the interests of the public and holding accountable those in the State corporations who dare engage in malpractices. Specifically, the focus must be on preventive and deterrent measures," said Mudavadi.

"Under the provisions of the State Corporations Act (Chapter 446 of the Laws of Kenya), the Inspector-General (Corporations) is vested with powers that include the authority to call for and inspect all relevant records, documents, and premises of State Corporations, as well as attend their meetings if necessary."

"Furthermore, the Inspector-General possess the authority to disallow unlawful expenditures, surcharge individuals responsible for unauthorized or negligent actions, and certify the amount due from those held accountable. In carrying out this mandate, I do not expect exceptions or exemptions by ISC."

Mudavadi said recent reports of cases involving the misappropriation of public funds in the health sector, at the Kenya Medical Supplies Authority (Kemsa) and the National Hospital Insurance Fund (NHIF), have highlighted the urgent need for stronger measures to prevent corruption and enforce accountability in government entities.

"Under powers vested in the Office of the Inspector General (Corporations) Section 18(2) of the State Corporations Act, inspectors have been deployed to these institutions to safeguard public funds and conduct thorough investigations into the reported improprieties with a view to surcharging all those involved," noted Prime CS.

Mudavadi said that the inspectorate will be working with other integrity enforcement institutions, such as the Office of the Auditor General, the Director of Criminal Investigations, and the Ethics and Anti-Corruption Commission to bring the culprits to justice.

He reminded public officers that they owe it to Kenyans to adhere to the responsible and accountable discharge of their duties and be the vanguard in isolating and reporting those wrongdoers in State corporations that are tempted to engage in fraudulent practices.

The prime Cabinet Secretary said that Kenyans of goodwill receiving State corporations' services should join this decisive war against the sleaze.

"Kenyans joining this endeavour will send a clear message that, as a society, we abhor impropriety at any level. By reporting incidents of impropriety in the use of public funds, we will be saving on our taxes.