Treasury defends role in Ksh.10B controversial county expenditure probe


Treasury defends role in Ksh.10B controversial county expenditure probe
File Photo of The National Treasury.

The National Treasury has defended its role in Senate’s probe of the misallocation of Ksh.10 billion from 11 counties into national government functions.

Treasury instead blames county governments for their alleged failure to correctly follow the laid down procedures for the disclosure of expenditure and budget execution by programs and sub-programmes descriptions.

In a statement to media houses, Treasury says only 14 of the 47 counties followed the prescribed disclosure regulations while 11 of the remaining units used the national government’s template to report on their revenue spend.

According to the National Treasury, 22 other counties failed to disclose details to their revenue spend in accordance to the Public Finance Management Act.

The National Treasury, however, remained silent on the role of the Integrated Financial Management Information System (IFMIS), a facility the governors have previously faulted for the creation of confusion to expenditure reporting and spending by the counties.

At the same time, the exchequer quelled concerns on the loss of funds from the mis-representation of records saying the implicated counties neither budgeted or spent funds linked to National Government Programmes.

The National Treasury has since directed the affected counties to re-submit the correct reports to the Auditor General for verification and subsequently forward the reports to the Senate.

On its part, the Council of Governors has formed a joint stakeholder technical team to address the budget mix-up queries.

The defence by the National Treasury follows allegations by governors who blamed the ministry for sneaking in additional items to their county budgets without their knowledge.

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Story By Kepha Muiruri
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