Auditor General, Edward Ouko

An audit of the Constituency Development Fund (CDF) for the 2012/2013 financial year has revealed how the kitty was looted by the unscrupulous MPs in the 10th parliament.

According to the report, which was submitted to the National Assembly by Auditor General Edward Ouko, members of the last Parliament squandered some of the Sh17 billion from the CDF pot through fraudulent deals, which include political campaigns in their final year in office.

Tigania East constituency for instance, allegedly misappropriated Sh1.55 million from the CDF account which was used to procure services of preparing a documentary in form of DVDs and magazines. The report maintains that the message in the magazine was a campaign tool.

The reports indicates a massive violation of procurement laws and also indicates that several projects under the fund in various constituencies stalled despite full payment of contracts.

GOVERNMENT CANNOT ACCOUNT FOR SH33.9 BILLION

The Auditor-General claims that weak and inadequate maintenance of accounting records in ministries and departments during the year, as well as poor management of interests and expenditure without the approval of Parliament has contributed a great deal to the misappropriation of funds as detailed in the report.

Out of Sh813,222,666,210, the total revenue recorded during the 2012/13 financial year, only Sh11,266,757,66 (1.38 per cent) was fairly recorded while revenue amounting to Sh801,955,908,550 (98.62 per cent) had no proper records and could not therefore be confirmed as accurately reported.

The report also reveals that the Government incurred excess expenditure amounting to Sh38, 495,253 without parliamentary approval and State House failed to avail documents in support of various expenditures totaling over Sh150 million.

Other ministries that could not avail records to back their huge expenditures include Ministry of Education with Sh6.7 billion and the Ministry of Higher Education with Sh4 billion, Foreign Affairs (Sh4, 521,596) and Defense (Sh350, 00,000)

“In the absence of the records and documentation, the propriety of the expenditure of the funds could not be ascertained and therefore these public funds may not have been utilized lawfully and in an effective manner,” the audit report reads.