MPs passed unaudited accounts for 2007/08, says Treasury official

Parliament was misled into approving unaudited revenue accounts for the fiscal year 2007/08, it emerged Thursday as mystery deepened over the correct revenue figures for the said year.

Financial Secretary Mutua Kilaka said former Finance minister Amos Kimunya presented to the House Sh397 billion as total ordinary revenue when it should have been about Sh419 billion.

But Mr Kilaka’s figure’s differed with the Sh433 billion presented by Kenya Revenue Authority (KRA) Commissioner-General John Njiraini.

The Treasury again gave the Auditor-General a figure of Sh466 billion as total receipts for auditing purpose.

Mr Kilaka, who appeared before three committees—Budget, Finance and PAC—alongside Mr Njiraini sought more time to reconcile the figures when he claimed that the actual revenue receipts for the financial year amounted to 516, 108, 407, 205.15, a figure that was finally reported to Parliament by Mr Ouko.

The three committees are investigating inconsistencies in the revenue statement presented to Parliament and the A-G by the Treasury after Gwasi MP John Mbadi raised the matter in the House.

On Wednesday, Mr Ouko told the committee that Finance failed to provide proper books of accounts for audit resulting in 13 out of 16 vote accounts not being certified.

Mr Kilaka said his team had reconciled the books of accounts and submitted the same for certification, ending the matter.

“We have captured all the correct accounts for the financial year in question and reported to Parliament the actual receipts during the 2009/2010 financial year. The confusion arose after an officer presented unaudited and un-reconciled figures to the minister as actual receipts. This was not intended to mislead Parliament and we apologise,” said Mr Kilaka.

The committee chaired by Maragua MP Elias Mbau, however, refused to accept the errors, blaming them on “Treasury’s incompetence in accounting.”

The Treasury and KRA also presented figures conflicting with those of the Auditor-General in regard to monies accruing as taxes on the sale of Telkom Kenya in 2006/07.

The Treasury and KRA revealed that Sh15 billion was paid as taxes on behalf of Telkom.

The amount differed with the Sh11.5 billion that Mr Ouko earlier presented to the House team.

“Telkom Kenya paid Sh15 billion in relation to tax arrears which the Treasury undertook to offset on its behalf as part of privatisation process to sort out its liabilities such as PAYE and VAT. We paid in three instalments,” said Mr Njiraini.

Mr Ouko said the Sh11.5 billion was reflected in the 2007/08 financial statements which he deducted from the accounts in reconciling the accounts.

“This money was in respect to the sale of Telkom Kenya in 2006/07 financial year constituting liabilities to the taxman,” said Ouko.