Africa-Press – Kenya. A technical omission by President Uhuru Kenyatta in formally appointing, in writing, key officials of the Covid-19 Emergency Response Fund handed the kitty to private hands.
On Thursday, Solicitor General Ken Ogeto told Parliament that the President needed to legally appoint the chairperson and secretary to make the fund a public kitty.
Ogeto said the President did not comply with Regulation 7 of the Legal Notice No 38 of 2020 which set up the fund.
The provision provided that the President was to appoint the chairperson and secretary of the fund and the same were to be done in writing bearing the seal and signature of the Presidency.
Ogeto told the Public Accounts Committee probing the utilisation of the funds collected into the kitty that this did not happen.
He further told MPs that the setting up of the Covid-19 Emergency Response Fund had some fatal omissions that does not qualify it as a public fund.
Ogeto said the fund, which was chaired by Kenya Breweries Ltd managing director Jane Karuku, was therefore not properly appointed as required by law to make the kitty a public fund.
“We have not been provided with any evidence of such appointment by the President or his delegate in order to arrive at the conclusion that the subject board was set up pursuant to Legal Notice No 38 of 2020,” Ogeto said.
He told the committee all the cash held by the fund was private and collection received from government entities are voluntary donations.
“It follows, therefore, that the money held and managed by the said board was not public money.”
Uhuru had on March 20, 2020 directed the Treasury to establish the fund and named a team to oversee the kitty.
Uhuru named Jane Karuku as chairperson and Attorney General Kihara Kariuki as secretary but did not sign their appointment letters.
Members were Safaricom CEO Michael Joseph, Equity Group chief executive James Mwangi, Dr Narenda Raval, KCB chief executive Joshua Oigara and Absa Bank Kenya PLC managing director Jeremy Awori.
According to the Auditor General Nancy Gathungu, the fund had collected Sh1.3 billion by December 31, 2020.
She, however, said the funds could not be accounted for as it did not go to the Treasury as required.
Out of the collection, government entities contributed Sh338 million to support the fight against Coronavirus.
Ogeto’s position is different from the National Treasury Cabinet Secretary Ukur Yatani who said the kitty was a public fund.
When he appeared before the same panel led by Ugunja MP Opiyo Wandayi, Yatani said the Covid-19 Emergency Response Fund was public.
Ordinarily, a fund created under Public Finance Management Act is under the purview of the Treasury and has Treasury principal secretary as the administrator.
Ogeto said the absence of representative of the National Treasury as the administrator confirmed the fund was not public, saying that mandatory requirements were not adhered to.
The solicitor general was speaking when he appeared before the oversight committee on behalf of Kihara.
The committee chaired by Wandayi is probing how government agencies used funds in the fight against Covid-19 pandemic in the country between March 13, 2020, and July 31, 2020.
Wandayi questioned how taxpayers’ money found itself in a private company if indeed the board was private.
“It is your submission that this board was not established under the PFM Act and that this board did not deal with public fund,” Wandayi said.
“But bank statements of the board indicate that part of the fund were from government entities amounting to Sh338 million.”
Garissa Township MP Aden Duale said the committee should be furnished with details of government agencies which contributed money to the fund.
“AG cannot claim that Treasury erred, they must tell us which law. Write to National Treasury stating section of the law they have erred,” Duale said.
(edited by Amol Awuor)
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