A recent audit by the Office of the Auditor General (OAG) has raised significant concerns about the use of Sh1.07 billion in emergency funds by security agencies in the last financial year. The report, presented to Parliament, highlighted major gaps in accountability and transparency, questioning the validity and propriety of these expenditures.
Lack of Supporting Documentation
Auditor General Nancy Gathungu disclosed that many of the payments from the emergency funds lacked adequate supporting documentation. The ministries of Defence, Interior, and the Department of Irrigation received Sh500 million each and Sh70 million respectively for “various emergency situations.” However, Gathungu noted that these ministries did not provide detailed expenditure returns or sufficient documentation for review. This lack of transparency raises serious concerns about how these funds were utilized and whether they were indeed necessary for emergencies as stated.
Propriety of Expenditure in Question
The audit revealed that a significant portion of the Sh1.07 billion was spent without sufficient justification. Gathungu highlighted irregular spending in various departments, including Sh30 million to the Works department, Sh65 million to the Crops Development department, and Sh35 million to the Livestock department. These funds were disbursed without adequate explanations or documentation, failing to meet the threshold required by the Public Finance Management Act of 2012. This act stipulates that funds may only be disbursed from the contingency fund if there is an urgent and unforeseen need for expenditure, with no specific legislative authority available. The auditor general stressed that the expenditures did not meet these criteria, questioning their propriety.
Challenges in Auditing Security Expenditures
The audit has also shed light on the long-standing challenges faced by the OAG in accessing documents and information from security agencies. The difficulties in obtaining relevant information have hindered the OAG’s ability to effectively audit security expenditures. In response to these challenges, there have been proposals to amend the Public Audit Law to streamline the auditing process, particularly for sensitive security-related spending. The proposed amendments would allow auditors greater access to documents and information, facilitating more comprehensive audits. However, critics argue that such changes could compromise public accountability and transparency, especially concerning national security funds. They have called for a balanced approach to ensure that sensitive information is handled with care while maintaining robust oversight.
Calls for Greater Transparency
Stakeholders, including Transparency International-Kenya, have voiced concerns about the proposed amendments, particularly regarding the provisions for redacting audit reports on national security. The organization contends that these changes could undermine public accountability by allowing for less transparency in the use of public funds. They advocate for more stringent oversight mechanisms to prevent misuse of funds in sensitive sectors like national security. The debate underscores the need for a comprehensive approach in handling sensitive information, ensuring that while protecting national security, there remains an avenue for public scrutiny and accountability.
Conclusion
The recent audit report has sparked a renewed call for stricter oversight in the allocation and use of emergency funds across government ministries and departments. The inability to substantiate these expenditures casts doubt on the effectiveness of current financial controls, especially in sensitive sectors like national security. As Kenya continues to grapple with governance and accountability issues, the proposed amendments to the Public Audit Act will be crucial in ensuring that public funds are used wisely and transparently. The ongoing legislative review process will need to strike a balance between safeguarding sensitive information and maintaining robust checks and balances to prevent misuse and ensure public trust.
