Auditor-General Edward Ouko (centre) at a past function. PHOTO | FILE
Parliament has put Auditor- General Edward Ouko on the spot for clearing the National Social Security Fund’s accounts despite its failure to account for Sh70 billion.
Eldas MP Adan Keynan said it was curious that the audit office had returned an unqualified audit opinion in NSSF’s 2013 financial year accounts without capturing the previous year’s queries.
“It is not only the NSSF books that raised our eyebrows. There were seven others including National Oil Corporation and Kenya Medical Research Institute (Kemri), which had huge pending issues but have curiously been cleared,” Mr Keynan told Mr Ouko when he appeared before the Public Investment Committee (PIC).
Thomas Mwadegu (Wundanyi) said a number of audit reports presented to the PIC had raised question marks.
“If audits have been done by your managers you assume full responsibility. We are consumers of your reports and we assure you that we are not happy with the way some of them have been compiled,” he said.
Mr Keynan said the committee had on numerous occasions declined to listen to some of Mr Ouko’s managers, which was why hey had summoned him to appear before them.
“We have outstanding issues on NSSF totalling to over Sh70 billion, which have been removed from the latest audit report. There are some issues in courts and others have not been explained since 1990s,” Mr Keynan said.
Mr Ouko said his officers audit whether accounts are in agreement with the books and that he will revisit the NSSF matter.
He said if the NSSF management wrote off the figures in question, it does not mean that the audit queries have been resolved.
“We had long issues that the NSSF board must have taken decision. Once they take decision based on our recommendations such as t write-off, I can’t say anything more,” Ouko said prompting opposition from Keynan who challenged him to state why the office of the audit should exist if it can’t interrogate decisions made by boards and make a determination as to whether the public got value for their money.
In his defence, Mr Ouko said some of the issues that are pending have been referred to the Ethics and Anti-Corruption Commission for further investigations and had therefore not been dropped.
The auditor conceded that there are several instances of complaints against his officers over misconduct.
“It is true in several cases my officers have been compromised. What I have done is to set up a quality assurance department. I have a special rapid force team that disengages to take over files where we hear officers have been compromised,” he said, adding that he needs funds to employ additional 500 officers to take care of audits in the 47 counties, 290 Constituencies Development Fund and special audits.
Mr Keynan said the issue of NSSF was explosive and that the Auditor-General had been accused of being “too good and too nice that he delegates all reports to his senior deputies and that he only signs certificates.”
“There are allegations that your officers have been retained by county governments and large State corporations,” Keynan said.
“The committee will not accept this report on NSSF. If we do, it will mean that NSSF has a clean bill and that the queries amounting to Sh70 billion have been sorted out.
There is also the issue of Sh36 billion in securities and Kikambala plots which have not been finalised.’’
“We want you to find out what really happened. We want you to withdraw the report or we will open an official inquiry where you will come before PIC as a witness. Call your officers and NSSF and prepare a report on how the clearance was done,” he said.
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