Gathungu wants sanctions for accounting officers

In her submissions to the Liaison Committee on the 2025 Budget Policy Statement, Auditor Nancy Gathungu noted that failure to act on audit recommendations has contributed to the fiscal indiscipline that has plagued the government.

He told the committee that her office has consistently proposed audit recommendations, aimed at improving accountability, transparency, and the effective, economic and efficient collection and utilisation of resources.

“However, these recommendations are not always implemented. As a result, many audit queries recur due to the absence of enforcement mechanisms, administrative sanctions, or the reluctance to apply the existing legal provisions,” the committee quoted Ms Gathungu.

“...there is a need to amend the Public Finance Management Act, Cap.412A to include sanctions for the non-implementation of audit and Parliamentary recommendations, as this would promote fiscal discipline,” added the Committee chaired by Gladys Shollei, the National Assembly Deputy Speaker and Uasin Gishu Woman Rep.

The Auditor General’s latest report covering various national government ministries, departments, and agencies for the year 2023/2024 has identified several expenditures that were neither transparent nor accountable.

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For example, she noted that the government signed Sh49 billion worth of contracts with private developers to construct affordable housing on lands without title deeds.

On February 11, the Chief of Staff and Head of the Public Service, Felix Koskei, issued a circular noting that public officers found guilty of misusing public resources will be required to account for the loss of the resources.

He noted that the Cabinet had approved the implementation of surcharges against any accounting officer or public officer, whose actions or omissions led to loss of public resources.

“The above decision by Cabinet is supported by Section 74 of the Public Finance Management Act, 2012 that requires accounting officers to take disciplinary action on public officers involved in improper conduct,” said Mr Koskei.

Some of the circumstances under which public officers or accounting officers are considered to have been involved in improper conduct include when they contravene or fail to comply with the Public Finance Management Act, including their accounting responsibilities.

Accounting officers will also be surcharged when they undermine any financial management procedures, management procedures or controls that apply to the entity.

An accounting officer, mostly a Principal Secretary, will also be penalised if they make or permit expenditures that are unlawful.

Moreover, the accounting officer might find himself or herself in trouble if he or she fails, without reasonable excuse, to pay eligible and approved bills promptly in circumstances where funds are provided.

Accounting officers will be expected to surcharge officers under their ward, who are responsible for any loss of public resources. They will also take disciplinary measures against all public officers mentioned in internal and external audit reports, as having been involved in improper conduct leading to the loss of public resources.

“All accounting officers are required to provide a report outlining the action (s) taken pursuant to this directive by April 14, 2025,” Mr Koskei said.

Where relevant, refer the matter to the appropriate statutory office that is mandated to carry out investigations and take any necessary further action.

“Before any surcharges are effected, the concerned officers must be subjected to due process and fair administrative action procedures in accordance with the law,” said Mr Koskei.

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