PCCB probes into embezzlement exposed by auditors

Dar es Salaam. The Controller and Auditor General (CAG) Charles Kichere said yesterday that some shortfalls uncovered by his office have been taken up by the Prevention and Combating of Corruption Bureau (PCCB) for further investigations.

Mr Kichere also advised that the Public Procurement Act be amended to eliminate challenges that arise from time to time in purchase practice.

The CAG made the remarks yesterday at a meeting media practitioners in Dar es Salaam.

The meeting was aimed at empowering editors and journalists on the responsibilities and implementation of the various activities carried out by the CAG office.

In April, Mr Kichere submitted the audit report on government monies, internal control systems and financial statements for the financial year 2020/2021.

In the report, the CAG identified embezzlement in various institutions including the existence of health insurance claims involving 56 men who allegedly had access to obstetric surgery and others giving birth in a normal way.

In addition, the report found that 89 road fines collection machines used by traffic officers had never recorded a single transaction in the government payment system.

The CAG was asked to explain how he felt about providing audit reports and recommendations on certain institutions but no action followed his reports.

Responding, Mr Kichere said every auditor would like to see the reports, comments and recommendations made being worked on to correct any shortcomings in future audits.

“But in some reports the indicators are not that action must be taken but that there must be a mechanism. For example, I saw yesterday (Friday), in the PCCB report they took it and asked for information to act on it,” he said.

However, Mr Kichere said there were some things in his reports that were being worked on, saying that was the process required to ensure the deficiencies identified in the audit did not recur.

Regarding public procurement law, he said as it stands some people continue embezzling despite meeting the requirements of the law.

He cited an example that it was possible for buyers to seek different prices as stipulated in the law and select a low price which nevertheless was above the market price.

He said Kenya had already made changes to such legislation, saying the CAG office was focusing on the real (market) value of the item purchased.

A similar challenge has recently emerged in the Medical Stores Department (MSD), where CAG reports identified equipment purchased at exorbitant prices as opposed to reality.

Mr Kichere said the media were key stakeholders and played a key role in strengthening good governance and shaping the need for transparency in government operations and educating the public on productive issues for the nation.

He thanked the media for the way in which they carry out their duties on audit reports.

“The office has a daily routine in the morning of going through all newspapers to see what has been written about the management of public resources. We often use your information to identify areas of risk in terms of public resource management and then develop a plan of action and audit in that area,” said Mr Kichere.

“I urge you to strengthen investigative journalism to help protect public resources so that they can be used for the benefit of the nation. I have now seen a few newspapers focused on the area and I commend them very much,” said Mr Kichere.