Fired CS Faces More Woes Over Questionable Ksh4 Billion Fund

Former Treasury CS Henry Rotich's woes seem to have deepened after Auditor General Edward Ouko uncovered possible embezzlement of Ksh4 billion relief fund in the financial year 2017/2018.

The State Department for Special Programme on behalf of the government signed the agreement with the World Food Programme (WFP) on June 9, 2017, where WFP agreed to facilitate the implementation of the emergency transfers targeting 1.3 million people affected by drought in 13 arid and semi-arid counties.

The agreement had been signed after the government had declared drought in these counties, including Turkana and Garissa, a national disaster.

The Nation reports that the allocated funds were released in two phases, with the first phase being July to August 2017 and the second phase being September of the same year when Ksh2 billion was released by the government.

According to the regulations governing the Public Finance Management act Act, 2012, the Treasury Cabinet Secretary is required to show for the management, operation and winding up procedures in the guideline before a public fund is established.

The then Treasury CS did not comply with the law.

After the dust had settled, there were no accountability documents, including the details of beneficiaries and evidence to show confirmation of receipt of the cash as intended by the beneficiaries, meaning that it would be hard to ascertain just how exactly the money was utilized.

“This is inappropriate utilization of public funds as the section of the fund, including mode of operation, has not been done in line with the existing laws,” Mr. Ouko said of the report which is currently before the National Assembly.

“In consequence, the legality and validity of the operations of the fund could not be ascertained,” he concluded.

This comes just a day after another report stated that the State Department of Special Programmes under the Ministry of Devolution cannot account for Sh3.4 billion.

This is after a report tabled by the leader of the majority in parliament Aden Duale unearthed discrepancies in the relief foodstuff receipts and distribution, meaning that it may not have reached intended beneficiaries.