The Foreign Affairs Ministry was been put in the spotlight after it emerged that massive loss of taxpayers’ money was happening through the Kenyan embassies and missions abroad.
On Thursday, the Auditor-General Edward Ouko revealed that the Ministry could not account for Sh767.09 Million collected from visa and consular fees and as income from rent collected from Kenya’s properties abroad.
In one instance, the Auditor-General disclosed that it could not be explained how Kenya’s mission in Berlin, Germany, spent millions of shillings held in three bank accounts.
According to Mr Ouko, the Embassy officials in Berlin casually expressed that a former financial attaché had disappeared with crucial financial records related to three accounts with 330,358 euros and Sh38.82 Million.
In the embassies in London, Rome, Addis Ababa and Washington DC, it was discovered that Sh137.72 Million was lost in the 2013/2014 financial year.
The four missions had lost money as follows: London (Sh82.37 Million), Rome (Sh47.43 Million), Addis Ababa (Sh6.32 Million) and Washington, DC (Sh1.6 Million).
Records from Pretoria, South Africa showed that Sh1 Million had been refunded to some 141 visa applicants. However, there was no proof that the refunds had actually taken place.
“In addition, visa fee is not refundable; therefore, the ministry should explain the basis for the refund if it was not fraudulent,” the Auditor-General said.
The Foreign Affairs Ministry was also accused of fixing exchange rates instead of allowing the missions to use market rates, resulting in the underfunding of the budgets for the embassies.
“No reason has been given for the basis of fixing this rate that denies foreign missions and embassies funding already approved by the National Assembly, a factor that could contribute to irregular use of revenue and unauthorized re-allocations,” Mr Ouko said.
The shocking report is set to be scrutinised by the Public Accounts Committee which is expected to summon the Foreign Affairs Principal Secretary.
The Auditor-General expressed that the ministry’s financial statements were a complete mess.
