• Thursday, 14 November 2024
Auditor general uncovers 'missing' KSH 16 billion unauthorized loan to Kenya Airways

Auditor general uncovers 'missing' KSH 16 billion unauthorized loan to Kenya Airways

As the probe into how the government withdrew Ksh.147 billion without the National Assembly approval, more revelations are emerging about unauthorised spending in the first year of the Kenya Kwanza administration.

An Audit query by the Auditor General has revealed how billions of shillings were extended as loan to Kenya Airways without any paperwork authorising the disbursement, or opening of a government of Kenya loan designated account, to which the funds could have been repaid.

The shadowing lending of Ksh.16.2 billion from Treasury and its spending could not be tracked as Kenya Airways irregularly mixed the funds with Kenya Airways PLC assets.

In the Ministry of Education, the Ksh.4 billion additional funding allocated to the State Department for Early Learning and Basic Education for the Secondary Education Quality Improvement Project (SEQIP) in November 2022 is also in question.

This after it emerged that classes under the project had not been completed and were therefore not in use.

In addition, some classes had been completed but had not yet been handed over, while some had stalled and laboratories were also incomplete.

In the Ministry of Energy, a Ksh.2.2 billion allocation for stabilization of refined petroleum pump prices paid as administration costs for the period ended June 30, 2023 has been flagged in the Auditor' report, as there was no justification for including the stabilization administration costs in the pump price build up.

The Auditor General has also tasked the Eastern and South African Trade Development Bank and Africa-Export Import Bank to provide evidence of received monies from Treasury for purchase of shares amounting to Ksh.6.3 billion.

The Auditor General wants the two banks to provide evidence that money was deposited into their respective bank accounts and also display share certificates of the same at the time of transaction.

Nyamira Senator Okong'o Omogeni has urged the President to account for the Ksh.147 billion which was withdrawn and spent by the government in the financial year 2022/2023 without the National Assembly approval under Article 223 of the Constitution.

The article allows Treasury to spend within 10 per cent range of ministries and departments budget item and seek approval later from Parliament.

Share on

SHARE YOUR COMMENT

// //