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Accountants propose Sh10m fine for ICPAK members involved in fraudulent deals

Treasury chief administrative secretary Nelson Gaichuhie (centre) and  Institute of Certified Public Accountants of Kenya chairman Julius Mwatu (right) after opening of auditor’s annual seminar in Mombasa yesterday. PHOTO | WACHIRA MWANGI | NMG
Treasury chief administrative secretary Nelson Gaichuhie (centre) and Institute of Certified Public Accountants of Kenya chairman Julius Mwatu (right) after opening of auditor’s annual seminar in Mombasa yesterday. PHOTO | WACHIRA MWANGI | NMG 

Accountants have proposed Sh1 million to Sh10 million fine for any of their member who engages in financial malpractices.

Institute of Certified Public Accountants of Kenya (ICPAK) also called for a review of the 2008 Accountants Act.

“It is sad that Sh100,000 is the penalty for accountants if one steals Sh9 billion. It is very easy to pay the fees, but if we enhance the penalties we will stop corruption,” said chairman Julius Mwatu.

Speaking during their 34th annual seminar at Sarova Whitesands Hotel in Mombasa, he said the stiff penalty will deter corruption in public service.

“We want laws changed to stop corruption and enable us to penalise any member found culpable. We want more discipline mechanism,” he added.

Mr Mwatu said any of their members found culpable of the Sh9 billion National Youth Service scandal should be deregistered.

“Accountants play a big role in public service. We urge the National Treasury to employ qualified and registered accountants to enable ICPAK to instil discipline. We want to impose sanctions for non-compliance,” he said.

Mr Mwatu said the Integrated Financial Management Information System (IFMIS) should be enhanced to stop pilferages.

“IFMIS is necessary but it should be enhanced. Sharing of passwords is irresponsible,” he said.

He said there are 22,000 registered accountants under ICPAK and another 20,000 who have passed their exams.

This year’s theme of the seminar is ‘Pathways to professional pre-eminence’.

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