Auditor-General must prevent corruption

PHOTO | FILE Auditor-General Edward Ouko.  NATION MEDIA GROUP

In Summary

• Reading the Constitution reveals various commissions and state agencies set up to check malpractices. So how come this trend continues with a rapid increase in the amounts involved?
• Offices such as the Auditor General must respond to Kenyans’ urge for greater accountability

PUBLIC FINANCES with Edward Ouko

Recent public interest in the management of resources in the public sector requires us to rethink our approach to public finances oversight. A cursory glance at local dailies, news channels and social talk in the last month reveals questionable financial malpractices covering the entire spectrum in the public sector.

This is a sad state of affairs as we strive to become a middle income economy by 2030. Could we then say that the Sh1.6 trillion proposed expenditure this financial year is safe amidst the demonstrated financial malpractices?

Reading the Constitution reveals various commissions and state agencies set up to check malpractices. So how come this trend continues with a rapid increase in the amounts involved? Should we continue using the same methods to fight the war against fraud, corruption, wastage and abuse of public resources?

Without casting any blame or pouring cold water onto ongoing efforts to fight corruption, we are either too slow or too late in reacting to these malpractices in a deterrent manner.

Most of these agencies come into the picture long after the horse has bolted. Is it good enough talk about where and how money has been lost and service delivery compromised, while the perpetrators drag the oversight agencies in long, frustrating litigation games?

We need to strengthen institutions and mechanisms of ensuring that most of these anomalies are detected, deterred and acted upon in real time. The oversight agencies must be proactive if we are to sustain the fight against corruption.

Whereas fiscal accountability has been the major focus of the Auditor General, there is need for continuous auditing if we are to respond to managerial accountability and assessment on service delivery.

The new dispensation not only requires the Auditor General to determine whether the books of accounts are correct or not, but how the resources are managed and the impact in terms of changing lives of ordinary Kenyans.

MANAGERIAL ACCOUNTABILITY

The constitution in 229 (4 and 6) requires the Auditor General to report and confirm whether or not public money has been applied lawfully and in an effective way.

Focus on managerial accountability is going to be important because it responds to Kenyans’ urge to see the top management uphold the principles of leadership and integrity under Chapter Six and the values and principles of public service under Chapter Thirteen of the Constitution.

Consequently, offices such as the Auditor General must respond to Kenyans’ urge for greater accountability. The Auditor General’s involvement should no longer be a seasonal exercise that is done once a year but a continuous one that is relevant, timely, advisory and making appropriate recommendations to deter future malpractices.

Internal audit in public institutions is critical, but only if effective. We may have to review the manner in which internal auditing function is constituted in terms of appointment, status and protection from management manipulation.

There are many cases where internal auditors report to a much lower level in organizations for this function to be effective. The legal framework for internal audit should be clearly captured in a robust Public Audit Act. The Office of the Auditor General is drafting one.