RAILA ODINGA's man JOHN MBADI on the spot over missing Sh160 billion at Treasury

Saturday, November 30, 2024 – National Treasury Cabinet Secretary John Mbadi has come under fierce fire over missing Sh160 billion at Treasury.

This is after it emerged that he cannot account for the billions spent in external debt repayment for the past three financial years.

This comes as the government plans to borrow Ksh413 billion in the current financial year.

A  Special Audit Report on the Servicing of External Loans has raised concerns about budgeted corruption, possible plunder, and wastage of public resources.

In the report, Auditor General Nancy Gathungu expressed concerns regarding Ksh161 billion in unclear debt repayment over the past three financial years.

Gathungu reported to the National Assembly’s Public Debt and Privatisation Claims Committee that there were discrepancies between the budgeted and actual debt servicing amounts for the financial years 2020–2021, 2021–2022, and 2022–2023.

These variances exceeded the 5 per cent limit allowed by law, reaching as high as 10 per cent of the approved amounts for the fiscal year.

According to the report, the Treasury underpaid by Ksh1. 4 billion in 2021 and a staggering Ksh83.3 billion in 2022. The Controller of Budget had budgeted Ksh235.3 billion in 2021 and Ksh339 billion in 2022.

In the next financial year, the Treasury went over and beyond the approved amount by Ksh77 billion. The Controller of Budget had set aside Ksh311 billion for the debt reservicing.

On Wednesday, MPs put Treasury to task to explain the anomaly raised by the auditor general.

However, the Treasury defended the variances, stating that the fluctuations were caused by the exchange rates of the Kenyan shilling against other currencies.

The Kenyan DAILY POST