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Govt is probing a 4.2 billion Ministry of Education scandal
Posted on Monday, June 13, 2011 @ 17:02:40 CDT by kwpnews

 Releasing the Forensic audit is Finance Minister Uhuru Kenyatta, Education Minister Prof. Sam Ongeri, Government Spokesman Alfred Mutua, and CID Director Mr. Francis Ndegwa Muhoro

NAIROBI - Deputy Prime Minister and Minister for FinanceUhuru Kenyatta says an audit report conducted on the ministry of education has been forwarded to the Criminal Investigation Department for CID for further investigation.

According to the report, sh. 4.2 billion is unaccounted for under Kenya Education Sector Support Progrmme (KESSP) down from the original figure of 8.2 billion.

Uhuru says the government is keen to have culprits prosecuted and the funds recovered. About a hundred officers are suspected to have been involved in the embezzlement

The misappropriation first came into the limelight in October 2009, where there were claims that 8.2 billion shillings under the KESSP had been embezzled by officers in the ministry of education.

The revelation even threatened Prof Sam Ongeri's political career with Prime Minister Raila Odinga purporting to suspend him alongside his then Agricultural counterpart William Ruto before president Kibaki revised the decision.

Ongeri however stood his grounds maintaining his innocence and went ahead to suspend key officers in his ministry who handled the funds. 

Addressing the same function, Education Minister Prof. Sam Ongeri said that all disbursements will be posted on the ministry's website together with details of allocation and the benefiting schools.

Uhuru says the money has been revised downwards following a further probe into the claims by the internal audit department.

"The additional audit work done by IAD since the first draft report was issued has confirmed that ineligible expenditure from the KESSP final audit is Kshs. 4.2billion having reduced from the original figure of Kshs. 8.2 billion."

Treasury has furnished CID with an audit report detailing how the funds were swindled by those given those responsible.

"In summary, the IAD report contains specific information on: The specific bank account details where funds were wrongly or irregularly paid into; Details of signatories of some of the bank accounts; The details of amounts disbursed into the wrong accounts; The details of confirmation from the schools that were to receive the funds as tabulated by the Ministry of Education but did not receive the funds as reflected in the bank payment schedules."

Treasury also forwarded to the CID another audit report on pending bills for the medical services ministry for September 2008 where 1.6 billion shillings is suspected to have been embezzled.

"The audit points to failure by the Ministry of Medical Services to transfer funds meant for drugs procurement as the main cause of the pending bills at KEMSA. The audit also highlights significant weaknesses in the internal control framework, transparency, accountability and governance mechanisms at KEMSA and failure to adhere to the statutory procurement procedures."

Treasury is also investigating suspected misappropriation of funds under the Arid Lands resource Management Project in the ministry of northern Kenya and other Arid lands.

"The Treasury is in communication with the World Bank, who are the principal partners in this project, to allow us conclude our consultations with the line ministry concerned, as well as initiate an in depth forensic audit in following with the laid down procedure. We will be informing the public on the progress and outcome of this audit."

The deputy prime minister said that his ministry is dissatisfied with the action taken towards the pending audit report by the Kenya Anti Corruption Commission.

"We are dissatisfied with the pace of investigations, if any and are handing over a copy of the same to the police for further investigations and prosecutions and are urging that the files be handled with expediency," he added.

The audit report was carried in the ministry of education, ministry of medical services and treasury which is currently undertaking investigations into fraud and misappropriation of funds under the Arid Lands Resource Management project.
Source: KBC

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