Two offices tasked with monitoring the utilisation of public finances have become the focus of attention due to the unflattering reports from the women leading them.
For these offices, mathematics is a language, and more often than not, the officers in charge attract both praise and criticism in equal measure.
The steely determination of these two women has caused ripples in political circles.
Auditor General Nancy Gathungu and Controller of Budget Margaret Nyakang’o, both fellows of the Institute of Certified Public Accountants of Kenya, strive to deliver on their mandate as independent offices. As a result, they have earned a place on the wall of fame at one end, and on the list of shame at the other.
Some MPs have turned up the heat on Nyakang’o and Gathungu based on their reports, which reveal massive irregularities in public expenditure.
Both Majority Leader Kimani Ichung’wah and Minority Leader Junet Mohamed have accused the Office of the Controller of Budget (OCoB) of massive corruption.
Ichung’wah said that neither of these offices should be left unchecked, asserting that Parliament has the responsibility to monitor them.
Bribe officers
“The office of the Controller of Budget needs to shape up. Across the country, governors and county governments are suffering because of inefficiencies and corruption in the OCoB. Speak to any governor, they will tell you they have to bribe officers in that office to get their expenditures approved,” Ichung’wah said.
Junet Mohamed added: “For every approval, you must part with something. Governors are saying it everywhere – to get approval from the CoB’s office, we must give some money.”
He continued: “Any audit report is a confirmed report before it is brought before the House. That culture will lead to anarchy. That culture will lead to people’s names being destroyed without any recourse. If the Auditor General’s word is final, then why report to Parliament?”
In line with her constitutional mandate, Nyakang’o has been overseeing the use of public funds and pointing out expenditure breaches since December 4, 2019.
The Controller of Budget insists that accountability in governance and the public sector requires government officials to explain their decisions and justify their actions.
Stay informed. Subscribe to our newsletter
“Accountability can be strengthened through strong institutional frameworks, independent audit functions, public disclosure of government information, citizen participation in public decision-making, and protecting whistleblowers,” she said during the 33rd Economic Symposium.
Nyakang’o has also released the first-half County Governments’ Budget Implementation Review Report for the 2024/25 financial year, covering July to December 2024.
The report reveals that county governments had outstanding pending bills of Sh180.52 billion, comprising Sh143.49 billion for recurrent activities and Sh37.03 billion for development activities.
The report also highlighted non-adherence to pending bills payment plans, failure to follow Exchequer work plans submitted to the OCoB, low expenditure on development programmes, and delays in submitting financial and non-financial reports.
Nyakang’o arrest
Based on these findings, the Controller of Budget recommended actions to improve budget implementation, including that Parliament and relevant stakeholders continue addressing outstanding issues related to mediation in the County Governments Allocation Act Budget, that county governments enhance efforts to collect own-source revenue during the remaining period of FY 2024/25, and explore alternative sources of revenue.
In December 2023, Nyakang’o was arrested in Nairobi and driven to Mombasa, an incident that was widely seen as a political witch-hunt.
She said her troubles stemmed from a Sacco membership she abandoned when she took over as Controller of Budget.
Nyakang’o, who was on leave at the time, explained that she had been playing golf in Karen and, upon returning home, realised she was being followed. She was later told that she needed to record a statement at the Central Bank of Kenya (CBK).
The Controller of Budget said she did not record a statement, and the officers informed her they had been instructed to take her to Mombasa, which they did by road during the night.
Azimio la Umoja issued a statement, describing Nyakang’o’s arrest and subsequent arraignment as inevitable due to her work for the public.
ODM leader Raila Odinga said Nyakang’o’s tribulations were politically motivated.
“We encourage Nyakang’o to remain strong in defence of integrity, professionalism, and the principles of good governance. As a party, we stand with Nyakang’o and will offer whatever help we can in the war against corruption. The struggle will be tough and long, but it is one Kenyans cannot afford to lose. We will lead from the front,” Raila said.
On her part, Gathungu has had to defend her report on the Sh104 billion Social Health Authority (SHA) system, explaining its irregularities.
Her reports have attracted harsh criticism from government sympathisers, who claim, without evidence, that they are politically motivated.
Parliament’s role
The 2023/24 audit report highlighted continued financial impropriety, wastage, and anomalies in government spending.
Among the issues she raised was non-adherence to the Constitution on the disbursement of funds to the Equalisation Fund.
The Auditor General noted that only Sh13.4 billion out of the expected Sh59.9 billion from 2011/12 to 2023/24 had been transferred to the Equalisation Fund account.
“The National Treasury had not remitted the outstanding balance of Sh46.5 billion to the Fund as of June 30, 2024. This was contrary to Article 204 of the Constitution, which mandates that one-half per cent of all revenue collected by the National Government each year be paid into the Equalisation Fund,” the report states.
Senate County Public Accounts Committee chair Moses Kajwang said action should be taken when audit queries are raised, insisting that Parliament must play its role.
“What else are we waiting for? Shouldn’t we be asking for administrative action, to have people fired, investigated, or arraigned in court? … And those are not just people on the government side; if there is a breach, there are two parties to it,” he said.
Nairobi Senator Edwin Sifuna commented: “What is this thing that stops you (Auditor General) from making recommendations on what should be done? That is where the frustration of the people lies. I mean, it’s one thing to declare that the law has been broken, but why is it that your reports never say, ‘let us jail people’? I do not understand. We should be told that we need to pursue criminal proceedings.”
However, the Auditor General responded that making recommendations on consequences for those who steal or misuse public funds is beyond her mandate.
“We have Parliament, prosecutors, and adjudicators, and each of these institutions has its own responsibilities. Regarding misuse or mismanagement of public resources, it is crucial we allocate roles to each institution to ensure the entire system works,” she said.
Kisii Senator Richard Onyonka praised the roles played by Gathungu and Nyakang’o in pushing for accountability.
“These two women are my heroes. They are the last line of defence in this country,” he said.
Direct assault
Civil Society Organisations have also condemned the MPs attacking Gathungu and Nyakang’o, stating that it amounts to intimidation of State officers..
“We condemn in the strongest terms the intimidation and the growing discussions around the Public Audit Amendment Bill 2024, which proposes an audit advisory board aimed at limiting the powers and independence of the Auditor General. Such actions are a direct assault on institutional integrity and accountability,” said Diana Gichengo of the Institute of Social Accountability.
The lobby groups called for full protection and resources for these two offices to enable them to execute their mandates, urging Parliament to implement the recommendations of the audits
