Auditor-General Edward Ouko has put Treasury Cabinet Secretary Henry Rotich on the spot for spending Ksh1 billion emergency fund meant to support flood victims.
According to Ouko, the CS spent the cash without seeking parliamentary approval.
“The lack of parliamentary approval for such payments is contrary to section 21(1) of the Public Finance Management Act, 2012,” Ouko remarked in an audit opinion.
Ouko disclosed that an amount of Ksh1,050,000,000 was paid out of the Contingencies Fund on May 29, 2018.
The money was purposed for supporting countrywide flood response, supporting flood victims and cash release to families affected by landslides.
Business Daily reported that the fund management did not include in the financial statements, information on whether the money was spent for the intended purpose or paid to the right persons.
The Auditor-General warned there is a danger that in future, the Contingency Fund may be exhausted rendering it unable to meet its mandate.
In early March, Rotich was grilled for three consecutive days over Ksh21 billion phantom dams projects.
His lawyer Katwa Kigen explained that the reason the questioning took so long was that they were dealing with international contracts which took time to break down.
He added that his client had answered all the questions and provided all the information that was being sought by investigators.
