Vanished money from a building project at the Kenyan State House!

kenya-state-house

This is an outtake of the Auditor General Report of 2014/2015, which means last budget year in Kenya. This is the State House of President Uhuru Kenyatta. The Jubilee Government have shown their character here.

Here they have first contracted one fellow to build certain things at the Statehouse, before the evident building happen at the Statehouse; they hired a second firm to build the same the first one we’re supposed to. That seems to be a way to vanish government funds and implicates the corrupt behaviour from contractors and state at the State House. That is just too beautiful to be fantasy. Uhuru, what say you? Who is the wrong one here?

“In paragraph 209 of the report for 2012/2013, attention was drawn to the irregular payment of Kshs.88,826,396.00 to a contractor who was constructing a mechanical workshop and petrol station at state house that had stalled . Although the matter was discussed before Public Accounts Committee (PAC), a determination was not made as the project was to be evaluated by the relevant technocrats to determine value for money. However, before the evaluation was done, State House awarded a new contract of Kshs.137,407,865.00 to another contractor for conversion of the mechanical workshop to offices. There were indications that the stalled project costing KShs.88,826,396.00 was demolished to pave for the construction of new project, therefore, the value for money for the initial expenditure could not be confirmed in accordance with Section 68(1)(a) and (b) of the Public Finance Management Act (2012). Consequently, the propriety and lawfulness of the expenditure amounting to Kshs.88,826,396.00 could not be confirmed” (P: 37, 2016)

Here one contractor gets in the budget year Kshs.88,826,396.00; and before the proof of works is done a new contractor gets Kshs.137,407,865.00 and the first payment we’re sent off even without any checking of proper work. While the State House offered second contractor before first was done. They couldn’t confirm the payment and transaction to the company that was supposed to build the Mechanical Workshop in the first place. That to me seems like money went into the wind. What do you think? Does the Republic of Kenya deserve this kind of handling of money even from the steps and offices of State House? Peace.

Reference:

Republic of Kenya – ‘Report of the Auditor-General on the Financial Statements for

National Government for the Year 2014/2015’ (15.07.2016) – FCPA Edward R. O. Ouko, CBS

Kenya: Joint Press Briefing – Drought and Food Security situation in ASAL Counties (16.10.2016)

rok-19-10-2016-p1

rok-19-10-2016-p2

rok-19-10-2016-p3

Kenya: Press Statement addressing Budgetary Allocation in Counties (14.10.2016)

cog-logo-47

Members of the Press,
Citizens of Kenya,
We address you today after recent coverage in the dailies portraying counties to be misusing funds allocated to them. County Governments have achieved much since the inception of the devolved system of governance and each county can readily demonstrate what they have achieved in each sector.
In line with this, the Council of Governors would like to clarify some things and the set the record straight.
ACCESS TO OVERDRAFT FACILITIES
• Counties are now able to access overdrafts from the Central bank for operations at 5% of the latest audited revenue and to be repaid within a year.
• The Central Bank of Kenya is in the process of preparing guideline since they have clearance from the Attorney General on the interpretation of the law in line with Article 212(b) of the Constitution of Kenya 2010 and Sec 140(1) of the PFM Act 2012.
The borrowing will cushion Counties financial constraints necessitated by delay in disbursement of the equitable share from the National Treasury.

UTILIZATION OF FUNDS BY COUNTY GOVERNMENTS
• According to the Controller of Budgets report for the past nine months, County Governments spent Kshs.7.15 billion on domestic and foreign travel of which Kshs.2.9Billion by the County Assembly and Kshs.4.115 Billion by the County Executive.
• The National Government Ministries and departments spent Kshs.8.023Billion in the same period of which Kshs.2.6Billion was spent by the National Assembly.
• The report further indicates that the National Government spent Kshs.107.862Billion being 26.9% of the total recurrent expenditure (Kshs.400.33Billion) on other unclassified expenditure.

WHAT DEVOLUTION HAS DONE FOR THE PEOPLE OF KENYA
• Since the advent of devolution, there is evidence to show that the people of Kenya have experienced a lot of positive change especially in service delivery. Health services are more accessible in the rural areas and more affordable. In 2012, there were 8,466 health centers and dispensaries, currently the numbers stand at 10,032 health facilities.
• Counties have employed more health care personnel. In 2013 there were 874 doctors and 6,620 nurses, the statics today stand at 1,302 doctors and 8,903 nurses in the county health facilities.
• Infant mortality rate has dropped to 39% per every 1000 live births as opposed 62% per every 1000 live births before devolution.
• In Agriculture there has been an increase in crop and livestock production. 132 Value addition projects have been instituted in 34 Counties; 1,021 greenhouses installed in 36 Counties; and 911 cattle dips have been constructed and rehabilitated in 28 Counties.
• 541,627 farmers have access to extension services with the aim of improving productivity.
• Counties have witnessed a 20% increase in enrollment of students in the ECD centers. In 2013, the ECD enrollment stood at 1,691,286, today it stands at 2,074,060. Additionally, 30,049 teachers and assistants have been recruited to cater for the increased enrollment.
• County Governments have refurbished over 598 centers, built over 5,951 ECD centers and equipped them with desks in a bid to ensuring that pre-school children learn in a conducive environment.
• Counties have embraced innovative and advanced technologies like the Pro-base road construction technology which is cost effective, durable and easy to maintain. Between 2013 and 2016, County Governments have tarmacked 379 kilometers of road and constructed 35,934 kilometers of all-weather road. Furthermore, 19,148 kilometers of new roads have been opened up and 9,572 kilometers of road rehabilitated.
• In trade, new markets for locals have been constructed to facilitate trade in the counties. The numbers of markets have grown from 362 markets to 651 markets.
• In 2013, there were 1,396 cooperatives which have since grown to 1,806 cooperatives with a turnover of KES 56 billion. The Cooperative societies in Kenya are now employing more than 300,000 people besides providing opportunities for self-employment to many more.

Kenya: Letter – “Re: Alleged Libelous tweet and DP Ruto’s threat to sue Boniface Mwangi (05.10.2016)

kenya-05-10-2016-p1kenya-05-10-2016-p2kenya-05-10-2016-p3kenya-05-10-2016-p4

Kenya: “Re: Libelous Tweet Concerning H.E. William Ruto” (30.09.2016)

ruto-30-09-2016

PBO: Kenya is borrowing without all requisite policies in place (Youtube-Clip)

“The government is borrowing without proper revenue planning or policies that factor in revenue growth challenges. This, according to Parliament’s Budget Office, coupled with the growing need to finance projects, will see the level of Kenya’s debt increasing in the coming year, which is already a cause for concern for some” (Kenya NTV, 2016)

President Kenyatta, DP Ruto the brains behind Jubilee (Youtube-Clip)

“Exactly who is the brainchild of the new Jubilee baby? Deputy President William Ruto is thought to be the force behind the formation of the Jubilee party. He is said to have engineered the formation of the party in preparation of the 2022 general election, but not to those in the know. In fact some say Ruto maybe the biggest loser in the new set up, not everyone thinks so as Ken Mijungu found out” (Kenya NTV, 2016)

DP Ruto reveals secret meeting with Uhuru gave birth to Jubilee Party (Youtube-Clip)

Opinion: Jubilee Government, are they fiscal responsible for their current running debt?

Kenyatta Ruto 09.08.2016

Today is a day where I have questions and they are big because when you crunch the numbers for the last three fiscal years and estimated debt ratio it’s start to be worrying. It isn’t a sweet and tender way of asking. I know, but the numbers and the citizens will have to repay the amounts of borrowed cash at one point. As the Japanese will not deliver second-hand vehicles to the hospitals forever like they did during either this or last week in Kenya; Kenyan Government shouldn’t base their budget on handouts, but on tax-monies. The budget now is worrying as the levels of budget that are borrowed as it is going directly to portfolios that are day-to-day business instead of giant infrastructure development.

Why do I say that? Because each year you can question the ratio between the debt and the development projects; like in 2013/2014 the debt we’re 330bn, but the development 224bn. That is a 100bn used on day-to-day instead of building roads to Ethiopia or planning the Standard Gauge Railway. Take look!

In the 2013/2014:

At the fiscal year ending the 25th July 2014 the budget debt we’re 330,440,692,719.35. That means there 330bn debt, which we’re 25.8% of the National Revenue. National Government budget spent on development we’re 224,355,607,699.00 or 224bn.

In the 2014/2015:

At the fiscal year ending 24th July of 2015 the budget debt we’re 400,249,353,175.10. That means there 400bn debt, which we’re 25.1% of the National Revenue. National Government spent on development we’re 270,320,838,230.00 or 270bn.

In the 2015/2016:

At the fiscal year ending the 22nd July of 2016 the budget debt we’re 683,479,898,203.50. That means there 683bn debt, which we’re 36.9% of the National Revenue. National Government spent on development we’re 333,170,357,469.90 or 333bn.

So as you see, the FY 2013/2014 isn’t the worst. FY 2014/2015 is the start of loose government spending. The Jubilee all of sudden borrow 400bn and spends 270bn. That is 130bn that is used on day-to-day business, with loaned fiscal funds instead of the ordinary tax-base that the government should be fixated on. So with the last year FY 2015/2016 the Jubilee went all out in the stratosphere and borrowed from any bank or institution possible; as the debt we’re 683bn and the development we’re 333bn. That is 350bn that are used to day-to-day business and not development. The question remain why the sudden giant loan ratio towards the last year before election and why the lack of projects to use the newly granted funds.

The fiscal responsibility seems weak and not there when a government can splash this kind of funds and use this amount of debt on day-to-day instead of big projects and infrastructure projects needed. I am sure DP William Ruto has more friends that can be sub-contractors for some Chinese infused borrowed road projects around Kisumu. But, the ability to sustainable development with the steady rise of debt is worrying. That the IMF and World Bank is saying the debt ratio is still feasible should be worrying. As the IMF and World Bank never had control of the worst years before the Greece defaulted and needed saving grace from the world around it. The worst comes to worst when the Kenyan Government starts to default and reach it’s limit they have to have a mercy on the Jubilee and the counterparts who are paying for loose fiscal behaviour. The worst comes to worst with the giant amount of added fiscal funds might give the economy a edged inflation and bank rates that weakens the Kenyan Shilling as the deficit between reality and what is really used.

You can wonder why the Jubilee wants to hedge up so much loans and government debt. When the FY 2013/2014 and FY 2014/2015 we’re the net domestic borrowing around 300bn, but by FY 2015/2016 it become 500bn. That is a jump of 200bn of Domestic Borrowing. That should also be questioned together with the ratio already in the budget. This doesn’t seem like a healthy fiscal policy. The public should question the use of the borrowed domestic and total ratio of debt. The governance levels and accountability of the funds should be asked from Opposition and also the Auditor General. The Inspectorate of Government the IGG or Ombudsman should hassle the hustling Jubilee who has gained these funds and been responsible for the allocated budget and inquired for the option for loans to development and day-to-day use.

What do you think? Peace.   

ODM MPs claim Jubilee is taking Kenya back to single party era (Youtube-Clip)

“A section of ODM members of parliament have dismissed the new jubilee party as an attempt to roll back the gains made since multi-party democracy was re-introduced in 1991. Led by Siaya Senator James Orengo, the mps alleged that President Uhuru Kenyatta is out to stifle democracy by presiding over the dissolution of more than 10 parties to form the jubilee party. And in Nairobi, another group of Odm mps have asked co-principals Kalonzo Musyoka and Moses Wetangula to support Raila Odinga’s presidential bid next year” (Kenya Citizen TV, 2016)