Matiang’i has challenged accountants to be bolder and help the state in her fight against corruption in the public sector.
The interior CS said the law will protect them from any retaliatory response by employers or clients they expose for graft.
Speaking during the 39th Annual Seminar for the Institute of Certified Public Accountants of Kenya (ICPAK) in Mombasa, Matiang’i stated that accountants can ensure resources allocated to public offices are protected and preserved by properly documenting all transactions.
“You are critical players in ensuring financial accountability in the public sector. The government needs you, you must stand up for your country and we will do much better as a nation,” said Matiang’i.
Matiang’I invited ICPAK and the private sector to build an institutional partnership with the government to foster economic recovery following the drastic effects of the coronavirus pandemic.
“Long gone are the days when the government was perceived as an entity that stood on its own, the government is you. A successful government engages constantly with the private sector. Do your bit in ensuring that the public resources you have, are used in the right manner,” he said and asked ICPAK to punish its members who are linked to graft.
He said in several cases, accountants have failed to report or register fraudulent activities happening in public sectors and lack of diligence in the use of the Integrated Financial Management Integrated System (IFMIS) which results in the misappropriation of public funds.
According to the 2020 Global Kenya Economic Crime and Fraud Survey, Kenyan firms have been reported to have lost Sh5.5 billion through corruption.
The CS stated that more than 14 per cent of the Sh5.5 billion loss resulted from accounting and finance statement fraud.
“Corruption is our biggest problem in this country, how are we going to fight poverty if we won’t fight corruption? We are asking you as very important professionals in the management of finance to stand up and reclaim our country from corruption, come forward and ask more questions, and find out what the budget allocated to various offices has done. Effective participation by professionals in the government business will lead to effective service delivery,” Matiang’i said.
ICPAK chair George Mokua said the institution is working on recovery strategies especially in the wake of the pandemic, as per the theme of the seminar, ‘resilience of accountants: weathering the storm for sustainable economic recovery.
Mokua said the institution is adopting accrual accounting which will streamline and block loopholes that are significant in the financial system.
Accrual accounting allows a company to record revenue before receiving payment for goods or services sold and expenses are recorded as incurred before the company has paid for them.
The other method is cash accounting where revenue is only recorded once the cash transaction has occurred for the goods and services.
Mokua said the accrual accounting system will enhance transparency and accountability in public finance management and improve internal controls which are likely to mitigate corruption.
“We implore the National Treasury through the Public Sector Accounting Standards Board to craft a clear roadmap for the implementation of the accrual-based accounting in the public sector,” he said.