Rédaction Africa Links 24 with Kenyans.co.ke
Published on 2024-03-06 10:44:47
The Office of the Auditor General recently expressed concerns about the challenges they will face in auditing entities within the healthcare sector and the affordable housing program. These concerns were brought to light during the presentation of The National Assembly’s Budget and Appropriation Committee’s report on the 2024 Budget Policy Statement on Tuesday, March 5.
Auditor General Nancy Gathungu addressed the Parliamentary committee regarding the budget cut that reduced the proposed budget of Ksh11 billion to Ksh8.6 billion for the 2024/2025 financial year. The allocated budget ceiling of Ksh 8.599 billion fell short of the estimated budgetary requirement of Kshs.11.380 billion by Ksh3 billion. This reduction in budgetary allocation comes at a time when the office is facing increasing demands due to the expansion of government programs aimed at sustainable development and quality service delivery.
Gathungu highlighted the challenges posed by the introduction of new policies under the Kenya Kwanza administration, which led to the establishment of additional institutions requiring auditing. Specifically, she mentioned the restructuring of the National Health Insurance Fund (NHIF) into multiple entities such as the Social Health Authority, Primary Healthcare Fund, Social Health Insurance Fund, and Emergency Chronic and Critical Illness Fund. These new entities will need to be audited, adding to the strain caused by the budget cut.
Moreover, the Auditor General expressed concerns about the continuous underfunding of oversight institutions, including Parliament, the Ethics and Anti-Corruption Commission, the Controller of Budget, the Office of the Director of Public Prosecutions, and the Judiciary. These institutions have historically received only 2% of the total national budget, including in the FY 2024/25. Gathungu emphasized the importance of increasing funding for these institutions to enhance the effectiveness of the fight against wastage and corruption.
In addition to the challenges in auditing the healthcare sector and the affordable housing program, the Auditor General also mentioned the need to audit other entities like the Housing Levy Fund and the Financial Inclusion Fund, which have complex structures requiring thorough scrutiny. The strain on resources due to the budget cut raises concerns about the office’s ability to fulfill its mandate effectively.
In conclusion, the Office of the Auditor General faces significant obstacles in carrying out audits in key sectors due to budgetary constraints. The call to increase funding for oversight institutions is crucial in ensuring accountability, transparency, and the effective utilization of public resources. It is imperative for the government to address these funding issues to support the critical work of these institutions in safeguarding public funds and promoting good governance.
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