Auditor General Exposes Massive Unauthorized Gov’t Spending, Questions Surround Disappearing Ksh.16B KQ Loan
As the investigation into the unauthorized withdrawal of Ksh.147 billion without National Assembly approval by the government unfolds, additional disclosures are coming to light regarding unapproved expenditures during the initial year of the Kenya Kwanza administration.
An examination conducted by the Auditor General has exposed a lack of documentation authorizing the disbursement of billions of shillings as a loan to Kenya Airways. Furthermore, there was no establishment of a government-designated loan account, where the funds could have been repaid.
The opaque borrowing of Ksh.16.2 billion from the Treasury and its utilization became untraceable, as Kenya Airways improperly commingled the funds with assets belonging to Kenya Airways PLC.
The allocation of an extra Ksh.4 billion in funding to the State Department for Early Learning and Basic Education for the Secondary Education Quality Improvement Project (SEQIP) in November 2022 is also under scrutiny within the Ministry of Education.
This is because it was revealed that the classes within the project had not been finished, and as a result, they were not being utilized.
Furthermore, certain courses had been finished but not yet delivered, others were at a standstill, and there were also incomplete laboratories.
ALSO READ:
- How not to make a mistake when choosing the best bookmaker in Kenya
- Understanding Gatwiri’s Cause of Death: Unraveling Positional Asphyxiation
- KRA Rules Out Tax Relief on SHIF Deductions
- Understanding Why Married Women Cheat: Common Reasons Behind Infidelity
- Violence Erupts in Mozambique: Three Killed, 66 Injured in Protests Over Disputed Election
The Auditor’s report has highlighted a concern regarding the allocation of Ksh.2.2 billion in the Ministry of Energy for stabilizing refined petroleum pump prices. This amount, designated for administration costs, has been questioned as of June 30, 2023, due to the lack of justification for including stabilization administration costs in the calculation of pump prices.
The Auditor General has directed the Eastern and South African Trade Development Bank as well as the Africa-Export Import Bank to furnish proof of funds received from the Treasury, totaling Ksh.6.3 billion, for the acquisition of shares.
The Auditor General is requesting both banks to furnish proof of funds being deposited into their individual accounts and to present share certificates corresponding to the transaction period.
Senator Okong’o Omogeni from Nyamira has called on the President to explain how the government utilized the Ksh.147 billion that was withdrawn and expended during the 2022/2023 fiscal year without the approval of the National Assembly, as mandated by Article 223 of the Constitution.
The article permits the Treasury to allocate funds within a 10 percent margin of ministries and departments’ budget allocations, with the option to seek approval from Parliament at a later stage.
Auditor General Exposes Massive Unauthorized Gov’t Spending, Questions Surround Disappearing Ksh.16B KQ Loan
