In a special audit tabled in Parliament covering the period between April 1, 2021, to June 30, 202,auditor General Nancy Gathungu illustrates how the Ksh34 billion spent could have been beneficial to other departments or sectors. This would Include the Ministry of Education to build 17,000 classrooms or the construction of 6,800 fully equipped classrooms.
The latest report presented by the Auditor General has unearthed shocking details of how Ksh34 billion vanished in 15 months to the August 9, 2022, General Election. This is through the fuel subsidy programme carried out under former President Uhuru Kenyatta’s regime.
While uncovering the Ksh34 billion spent, the Auditor General Nancy Gathungu noted that the amount was aimed at cushioning Kenyans from the high fuel prices. It might have ended up in the hands of a few individuals.
While breaking down the data, Gathungu stated that Ksh554 million was overpaid to 11 oil marketing companies (OMCs). Other suspicious transactions involved the irregular utilization of Ksh22 billion from the Petroleum Development Levy Fund (PDLF) and irregular advance sales prices amounting to Ksh5 billion. Administrative costs, according to the report, amounts to Ksh2.21 billion.
The Treasury Cabinet Secretary Ukur Yatani, was accused of misappropriation of funds over the Petroleum Development Levy Fund. The funds were meant to be used in the development of facilities for either the distribution or testing of oil products.
According to the report, Ksh18.14 billion was transferred from the National Treasury to fund various road projects. “Utilization of the Petroleum Development Levy Fund (PDLF) to pay for road construction projects and transfers to the Ministry of Energy. It was in violation of the Petroleum Development Levy Act and Order of 2020 and the PFM (Public Finance Management) Act,” the audit report stated.
In addition, the funds released for advance payments had no legal framework and hence lacked evidence of the recovery of the advance payment. There is no documented compensation mechanism in place to ascertain, the specific components of petroleum products that should be stabilized and the respective amounts to be paid to the OMCs,” a section of the report stated.