Africa-Press – Kenya. Fear has gripped Kenya Forest Service top officials after a watchdog committee warned they risk going to jail for pocketing allowances irregularly. The National Assembly’s Public Investments Committee on Commercial Affairs and Energy on Wednesday warned that officials will carry their own crosses.
This is after the audit report flagged unsupported special operations expenses in KFS books for the financial year 2016-17, 2017-2018 and 2019-20. The auditor says the financial statements reflect a general expense balance of Sh1,384,778,791 that included an amount of Sh77,054,328 (2019:Sh100,421332) on special operations.
The audit indicates that the expenditure was incurred on imprest issued to various District Forest Officers and regional commandants for the purchase of goods, services and allowances to forest rangers.
“However, the management did not avail a report to support special activities on forest protection,” the auditor says.
“In the circumstance, it has not been possible to confirm the propriety of expenditure of Sh77,054,328 on special operations.”
Committee chairman David Pkosing said, “They issued themselves the money irregularly? The auditor, tell the committee the meaning of irregular and who are these officers?” Pkosing warned that there will be criminal culpability.
Acting Chief Conservator Alex Lemarkoko, his personal assistant Benjamin Kinyili and head of accounts Anthony Kiumbuku and acting head of finance Anthony Karanja appeared before the committee.
KFS however responded that the reports for the special operations are available but were not requested during the audit process. The service said key special operations conducted during the period, their establishment justification, achievement and future plans for demobilisation were provided.
The auditor has also put KFS on the spot over unexplained employee cost variance and increase in cost despite the reduction in the number of employees.
The audit statements reflect employee costs of Sh4,302,538,881 for the year ending June 30, 2017. This represents an increase of Sh440,118,322 from the previous year of Sh3,862,420,559.
However, it was noted that the total number of employees was reduced by 108 employees from 5,136 for the year ended June 30, 2016, to 50 for the year ended June 30, 2017.
“The significant increase in employee cost despite the reduction in the number of employees has not been explained. In addition, the led schedule availed for audit review reflects a figure of Sh4,333, 201,891 while the financial statements reflect a figure of Sh4,302,538,881 resulting in a reconciled difference of Sh30,663,010,” the audit says.
KFS in response says the service was upgraded from parastatal category 3C to 3A, which raised salaries and other allowances for employees. The service said the upgrade raised salary by 35 per cent which was spread within five years (7 per cent every year).
KFS says the move meant that despite the reduction in the number of employees, salaries went up. The service said provided schedules to Sh4,302,538,881 and this is equal to the amount reported as employee costs reported in the financial statements.
But even as the auditor raises questions, sources within KFS say they have stagnated for a long time. “The promotions are based on nepotism from the human resource department and they made a structure to suit their personal interests,” a senior official said.
Forestry PS Ephantus Kimotho, however, said the issue will be addressed through human resource instruments. “We have a new board and it will be tasked with addressing the issue through human resource instruments,” Kimotho said.
The auditor has also put KFS on the spot for unauthorised acquisition of legal services by pointing to legal and arbitration expenses amounting to Sh35,684,853 (2019 Sh15,437,610). The audit said various lawyers or law firms were engaged to carry out legal services on behalf of KFS.
“The management did not explain why approval to hire legal services was not sought from Attorney General and the procurement methods used to procure law firms. In addition, reports of pending and finalised litigations as of 30 June 2020 were not availed for audit review,” the audit says.
The audit said this was a breach of law and it was not possible to confirm whether value for money was obtained. The AG in a circular dated March 2018 gave out guidelines for instructing external advocates in legal matters.
Specifically, state agencies secure the approval of the AG prior to issuing instructions to external counsel. The auditor also raised concerns with Sh94,893,744 meant for tree planting and tree seedling in the financial year 2016-17.
The auditor said the review of expenditures revealed Sh94,893,744 was spent on various items such as daily subsistence allowances, lunch and publicity among others.
Similarly, the payment of daily subsistence allowances to casuals under tree planting was at a rate higher than the stipulated rate. KFS protects 6.4 million acres of gazetted forests and another 420 million acres under counties.
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