Wednesday 2 November 2016

[Kenya] PAC warns Cleopa Mailu against hiring private auditor to probe Sh5bn scam

Health Cabinet Secretary Cleopa Mailu. The National Assembly's Public Accounts Committee on November 2, 2016 warned him against hiring a private auditor to look into the questionable spending of Sh5 billion at the ministry. FILE PHOTO | NATION MEDIA GROUP

Health Cabinet Secretary Dr Cleopa Mailu. PHOTO | FILE | NATION MEDIA GROUP

A House committee has warned Health Cabinet Secretary Cleopa Mailu that he may be forced to pay from his pocket if he hires a private auditor to verify questionable ministry spending amounting to Sh5.3 billion.
Parliamentary Accounts Committee (PAC) chairman Nicholas Gumbo on Tuesday called out Dr Mailu's suggestion of an external auditor to probe the scandal, saying it does not make sense.
Dr Mailu had accused the internal auditor of leaking an incomplete audit report to the media, and said he would hire an independent external auditor to verify the corruption claims.
This came as claims emerged that Health Principal Secretary Nicholas Muraguri had attempted to remove the ministry’s internal auditor “for constantly producing qualified audit reports on the ministry’s spending".
SURCHARGED
Speaking to Nation.co.ke, Mr Gumbo claimed it was illegal for the ministry to employ an external auditor, adding that only the Auditor-General is mandated to audit government accounts.
“If he does that (seeking external auditor), he will have a lot of explanations to make to the PAC with a guaranteed risk that he will be personally surcharged,” Mr Gumbo said.
“In fact, if the minister invites 'external auditors' he shall have violated the clear provisions of Article 226(3) of our Constitution which states, inter-alia, that '...the accounts of all Government and State organs shall be audited by the Auditor-General'". 
Mr Gumbo, also the Rarieda MP, said not only will the minister be surcharged, but “he shall have invited upon himself the process of being removed from office. He must stand warned.” 
The PAC chairman spoke as ODM leaders claimed the government was trying to cover up the scandal by seeking the services of an external auditor.
GRAND COVER-UP
ODM Secretary-General Agnes Zani, Political Affairs Secretary Opiyo Wandayi, Deputy Organising Secretary Florence Mutua and Gem MP Jakoyo Midiwo said Dr Mailu appears to be blaming the internal auditor for the scandal.
“How could an internal auditor spuriously find that money is missing and it is not missing?” asked Dr Zani.
Mr Wandayi said calls by Dr Mailu for an external auditor were part of the grand cover-up designed by and implemented from State House.
“There's no need for more audits. What's required is swift action on the issues raised in the internal audit report,” he said.
Ms Mutua questioned whether it was proper order to waste taxpayers’ money to audit an already audited account. 
SHUT UP
“How do you audit an audit report? They just want to cover up so as to save the untouchables," said the Busia woman representative. 
"Kenya is sinking as Kenyans watch. We have never been through such terrifying times.”
Mr Midiwo cautioned Dr Mailu to handle the scandal with care, noting that it happened long before he was named the Cabinet secretary. 
“He (Dr Mailu) should shut up. He is putting a rope on his neck,” the Gem MP said. 
On Tuesday, Health ministry internal auditor Bernard Muchere was questioned by Ethics and Anti-Corruption Commission officers in connection with the audit report.
Also interrogated was head of accounts Joyce Mutungi. 
The team is expected to begin interrogating Mr Muraguri and head of finance Peter Odundo on Tuesday.

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