Finance officers to face lifestyle audit
What you need to know:
- There will be mass transfers of procurement officers and accountants in all government ministries and departments, as a way of fighting corruption, according to a new order by the Treasury.
- A circular issued by National Treasury Cabinet Secretary Henry Rotich also ordered the immediate vetting of all public finance management officers in various national government establishments across the country.
- The vetting will include a clear lifestyle audit of some of the top government officials charged with the responsibility of buying goods and services on behalf of the government.
- A similar exercise is already under way at the Kenya Revenue Authority over suspicious accumulation of massive wealth by both junior and top officials.
The wealth of top civil servants, especially those responsible for procurement and finance, will be investigated to establish if they are living within their means.
There will also be mass transfers of procurement officers and accountants in all government ministries and departments, as a way of fighting corruption, according to a new order by the Treasury.
A circular issued by National Treasury Cabinet Secretary Henry Rotich also ordered the immediate vetting of all public finance management officers in various national government establishments across the country.
The vetting will include a clear lifestyle audit of some of the top government officials charged with the responsibility of buying goods and services on behalf of the government.
A similar exercise is already under way at the Kenya Revenue Authority over suspicious accumulation of massive wealth by both junior and top officials.
PUBLIC FINANCE DEPARTMENT EMPLOYEES
“All other PFM officers involved in public finance management, including but not limited to finance officers, accountants, and internal auditors, heads of departments, AIE holders and their alternates shall be vetted with immediate effect,” read part of the circular by Mr Rotich.
The circular, copied to all Cabinet secretaries and Attorney-General Githu Muigai, said the government is trying to curb corruption in the public service and improve accountability in the use of public funds.
Said Mr Rotich: “These measures are also part of the government’s comprehensive plan to implement the recommendations of the National Government Task Force to review the legal policy and institutional framework for fighting corruption in Kenya.”
RECONSTITUTE PROCUREMENT COMMITTEES
Mr Rotich also wants chief officers to reconstitute all procurement, disposal and tender committees and their alternates as soon as the redeployed procurement chiefs arrive at their work stations.
“[None] of the above mentioned committees shall perform its function until it has been reconstituted after redeployment of PFM officers including procurement officers, Finance Officers, Accountants and Internal Auditors,” he ordered.
The minister said the findings of the National Government Task Force to review the legal policy and institutional framework for fighting corruption in Kenya established that 70 per cent of reported corruption takes place at the procurement stage.
From now, the minister said, no public finance management officer is allowed to serve more than three years in one ministry or department.
A similar move was taken by President Kenyatta in 2014 when he kicked out several key procurement functionaries from his office.
The results of investigations ordered against them are yet to be made public.
PROCUREMENT DEALS
At the time, several procurement deals were put under the microscope, including a major gun deal where prices were suspected to have been inflated.
Mr Rotich’s circular targets only officers of the national government, but there is pressure to have the new policy implemented by county governments where corruption is endemic.
Though directors of procurement in the counties are directly in charge of major tenders, they are answerable to County Executive Committee members for finance.
The Council of Governors (CoG) has called a meeting tomorrow to discuss problems with e-procurement at the counties.
On Thursday, CoG chairman and Meru Governor Peter Munya and Kakamega Governor Wycliffe Oparanya met Mr Rotich and formed a task force to iron out issues raised on the implementation of e-procurement.
“The Council of Governors is committed to the implementation of IFMIS and e-procurement but it is important to deliberate on administrative, technical and legal issues that will streamline financial operations in counties,” said Mr Oparanya, who chairs CoG’s Finance Committee.
County governments have been working on a list of challenges affecting the adoption of the controversial e-procurement system, which is largely opposed by governors.
This week opposition leader Raila Odinga said President Uhuru Kenyatta and his administration had failed to tame corruption.