A revelation that the National Treasury sent Ksh288 million erroneously for a World Bank funded project has prompted investigations.
The National Assembly Public Accounts Committee (PAC) learnt of the case through a report submitted by the Auditor General Nancy Gathungu, questioning the Energy Principal Secretary (PS) Alex Wachira.
According to the audit report, the Auditor General flagged the extra budget after it emerged that the State Department for Energy was the recipient of the money.
Additionally, Gathungu explained that while the State Department for Energy budgeted for Ksh90 million, it received Ksh378 million, an overfunding of Ksh288 million.
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MPs Corner National Treasury PS
Representatives from both parties were questioned over the error which raised eyebrows on how often such errors occurred.
The parliamentary committee found the explanation issued by the PS inadequate and unsatisfactory stating that a submitted written response made no reference to the extra amounts received.
Further, when pressed, the management explained that the overfunding was as a result of the project erroneously receiving funds meant for another entity.
“You said you erroneously got Ksh288 million. How did the generous error arise? Which other entity is involved?” Rarieda MP Otiende Amollo, a member of the committee, asked.
“You could have attached evidence to explain this further. The question we are asking is, did it go back to the sender, or did it disappear from the Treasury?” Soy MP David Kiplagat added in question.
At the same time, the MPs took issue with the department for glossing over the matter and pushed for presentation of the agreements signed between the Treasury and the World Bank on the same.
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Other Matters Arising from the Case
On the other hand, the committee questioned why the provided Ksh90 million for the project, was also not spent fully as projected.
Auditors queried the under absorption after it was revealed that out of the Ksh90 million, only 50 percent was absorbed.
However, the ministry explained that the under-absorption was due to complexities in the procurement process.
According to PS Wachira, the procurement procedures were undertaken using the World Bank guidelines. Also, he said that the project in question is now complete, and that the extra funds were returned to the National Treasury.
“The guidelines required that we get clearance at every stage. An approval at one stage would then define what to be done next,” he said.
In their defense, Treasury officials at the meeting said the cases of erroneous overfunding were not common.
“We intend to believe it is erroneous,” said CPA Lawrence Kwiriga Kimathi, a senior Principal accountant at the National Treasury.
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