President Ruto Orders PSs and Parastatal Chiefs to Account for Billions of Money in Tax Revenue.

Source: Business daily

Principal secretaries (PSs) and other accounting officers in government ministries, departments, and agencies (MDAs) are racing against limited time to meet a deadline set by President William Ruto for them to respond to all questions highlighted by Auditor-General Nancy Gathungu.

According to a circular issued by the President’s Executive Office, accounting officers have until October 2, 2023, to resolve all outstanding audit queries emanating from the Auditor-General’s reports for fiscal years 2021/2022 and 2022/2023.

“All pending audit queries or issues arising from the OAG [Office of the Auditor-General] reports of the financial year 2021/22 and 2022/23 must be closed off by Monday, October 2, 2023, with a notification to this office by Monday, October 9, 2023,” said the memo signed by the Chief of Staff and Head of the Public Service, Felix Koskei.

An audit query suggests that an auditor has concerns or questions about the genuineness, validity, or accuracy of transactions performed by an audited entity.

“Where an audit query is not capable of being closed off for any reason, the same must be fully explained in writing by Monday, October 9, 2023.No MDA shall attract a new audit query in the entire financial year 2023/24,” the Executive Office of the President said.

The President’s instruction comes after his office conducted a survey of MDA transaction books, which found that less than 30% of audit queries for fiscal years 2021/2022 and 2022/2023 had been adequately handled.

“Audit queries and issues from the basis, or lay the foundation, for vices that undermine government objectives to be a responsive, responsible, efficient, and effective custodian and manager of public resources,” the circular stated.

The President’s directive is a significant boost for the Auditor-General, who has repeatedly protested MDA inaction on queries on unexplained expenditures or transactions totaling billions of shillings every year. For example, in the fiscal year 2021/2022, the Auditor-General’s office flagged transactions in various State agencies, including Sh8.6 billion in unremitted contributions to the National Social Security Fund (NSSF).