Transition agency hands public assets audit task to Ouko
Auditor-General Edward Ouko. The governors faulted Mr Ouko for releasing the report to the public and the media before they could had a chance to examine it to determine whether it was a true reflection of the facts. FILE
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Mr Ouko told the Senate Committee on Finance, Commerce and Planning that he had signed a memorandum of understanding with the Transition Authority on verification of the assets and liabilities.
Transition Authority abandoned the audit after it received only Sh500 million in the current budget for the audit, against its requirement of Sh2.3 billion.
The Auditor General Edward Ouko will today take over the task of confirming the assets of national and county governments.
Mr Ouko told the Senate Committee on Finance, Commerce and Planning that he had signed a memorandum of understanding with the Transition Authority on verification of the assets and liabilities.
“I will be meeting the Transition Authority tomorrow (Thursday) to formally take over the exercise. It is very critical that we know what counties own in terms of assets and liabilities,” said Mr Ouko.
The committee chaired by Mandera Senator Billow Kerrow had invited the Auditor General to shed light on the recent audit of the 47 county government accounts.
Transition Authority abandoned the audit after it received only Sh500 million in the current budget for the audit, against its requirement of Sh2.3 billion. Mr Ouko said that the exercise would be completed by December.
“The authority was required to ascertain the level of assets and liabilities for each county as well as what belongs to the government,” said Mr Ouko.
“I am already establishing a committee comprising the authority, my office and several other ministries to conduct the exercise.”
He said the existing county and national government books of accounts would be closed next Tuesday and fresh ones prepared as the basis of future audits.
The date coincides with one year since the last General Election when local authorities ceased to exist and were replaced by county governments.
Mr Ouko pleaded for additional budgetary allocations saying he had diverted some funds to the assets and liabilities compilation and that some work would be contracted out to private accountants.
He said that transactions during the period between inauguration of governors and the General Election would be audited to establish the assets and bank balances of the defunct 175 local authorities.
A special audit of the 47 counties covering the first half of the financial year to December returned massive misuse of public funds.
“Many governors are keeping huge sums of money, some between Sh20 million and 30 million as petty cash. This is contrary to provisions of the Public Finance Management Act,” he said.
The auditor said the special county audits targeted transitional risks revealing that some governors took more than Sh460,000 a day for meet-the-people tours.
He said misuse of funds, poor accounting systems, failure to comply with procurement laws and non-implementation of the Information Financial Management System cut across the 47 counties.
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