Members of Parliament (MPs) drawn from the Public Accounts Committee (PAC) have raised alarm over Ksh1.8 billion in supposed idle funds lying at Kenya’s embassies in the United States, the United Kingdom, and Ethiopia.
The MPs, while summoning Foreign Affairs Principal Secretary Korir Sing’oei on Friday, September 12, sought answers over the funds, amidst concerns over financial discipline and the fate of diplomatic projects.
The queries arose after a report by the Auditor General on the audited financial statements of the State Department for Foreign Affairs for the year ending June 2023, which questioned the handling of Kshs 1.8 billion recorded as development cash book balances in missions abroad.
As per AG Nancy Gathungu, the funds had accumulated over several years due to the failure to surrender unutilized allocations at the close of each financial year.
However, in response to the MPs' queries, PS Sing’oei said the figure of Ksh1.8 billion had been set aside for specific purposes tied to ongoing projects and mission operations abroad.
“In Washington, D.C., the balance comprises contractors’ retention monies for works already completed and certified, pending the conclusion of the defects liability period before final handover of the project,” he explained.
“It also includes allocations for ongoing refurbishment works. These funds will be transferred to deposit accounts and released directly, hence no need to factor them into the current budget.”
Turning to the London mission, the PS said the monies were earmarked for the purchase of a Chancery property.
He noted that while the property had been identified and the procurement process finalized, the funds could not be spent because the Attorney General had not yet given concurrence for the procurement of a conveyancing lawyer to prepare the necessary documentation.
“Since the process was already at an advanced stage, the funds were retained and transferred to the mission’s deposit account, awaiting final execution of the sale agreement,” Dr. Sing’oei told MPs.
However, the purchase of the Chancery was a point of concern for the MPs, with Aldai MP Marianne Kitany urging the Ministry of Foreign Affairs to provide documentary evidence to back its explanations on the prolonged purchase.
Sing’oei was pressed to attach evidence showing when the contract was signed, its terms, and when it ended. Another point of concern for the MPs was that the procurement process of the Chancery was finalised without a lawyer.
“He further explained that the monies are being held pending concurrence for the procurement of a conveyancing lawyer. This raises questions: does it mean the procurement was undertaken without legal representation in the first place?” Kitany quipped.
The legislator pressed further, questioning whether the Attorney General had initially handled the process, and why the ministry was now seeking concurrence from a separate conveyancing lawyer.
More details on the Chancery revealed that Ksh1.7 billion had been allocated for the London development in the 2022/2023 financial year, but the funds remained idle. Also, the ministry noted that only about Ksh215 million was related to Washington and Addis Ababa, with the bulk of the fund linked to the London deal.
Even so, the committee resolved that the Ministry must furnish Parliament with a comprehensive and updated report on the London property purchase and other mission expenditures.
