A good 98.8% of the money spent by
Kenya’s ministries in the 2013/14 financial year could not clearly and lawfully
be accounted for, a new audit report shows, a damning indictment on the state
of public financial management in the country.
It comes just days after US President Barack
Obama made a stirring speech at the African Union headquarters in Addis
Ababa on Tuesday, where he called for strong action to tame graft, saying
“Nothing will unlock Africa’s economic potential more than ending the cancer of
corruption.”
Corruption is not unique to Africa,
Obama said, but “here in Africa, corruption drains billions of dollars from
economies that can’t afford to lose billions of dollars - that’s money that
could be used to create jobs and build hospitals and schools.”
The report from the office of
Kenya’s Auditor-General makes for chilling reading, detailing massive
irregular payments, unauthorised expenditures, diversion of funds, and in some
cases, blatant plunder of public resources by government officials.
Out of a total expenditure of Ksh1 trillion
($10 billion) by government ministries, only 1.2%, or Ksh12.5 billion ($125
million) “was incurred lawfully and in an effective way”, the report says.
The auditor-general put a question mark on
60% of the expenditure, owing to unsupported payments, misallocation of funds,
or inadequate disclosure of necessary details.
And for a further 38.5%, the report gave a
clear “fail” grade as there were clear discrepancies in the books, such as a
difference between the closing balance in one financial year and the opening
balance in the next.
Although government spin doctors have been
quick to rush to defend President Uhuru Kenyatta’s administration, arguing
that a negative audit report does not necessarily mean the money was stolen,
the discrepancies still put a definite damper on perceptions of corruption in
the country.
Kenya’s rankings on Transparency
International (TI) Corruption Perceptions Index has slipped nine places between 2013 and
2014; and the latest report has quickly dimmed the afterglow from US President
Barack Obama’s visit over the weekend.
Corruption Overview (Transparency International) |