Wastage of funds alarms MPs

Parliamentary Budget Committee Chairman Mutava Musyimi (left) and Cabinet Secretary for Treasury Henry Rotich during the launch of the Sector Working Groups (SWGs) for the financial year 2014/15-2016/17 MTEF budget at the Kenyatta International Conventional Centre in Nairobi on September 16, 2013. Photo/SALATON NJAU  

In Summary

• House committee says ministries and agencies are not properly using money allocated to them
• Budget team reveals performance indicators for various programmes are vague

By MUTHOKI MUMO
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A parliamentary committee has raised the alarm over wastage of resources by the government as the Treasury embarks on the budgeting process for the next financial year.

Speaking on Monday, Mr Mutava Musyimi, who chairs Parliamentary Budget Committee, said that wastage of funds allocated to government ministries and agencies is hurting the economy.

“I have it on good authority that we are wasting about a quarter of the money we collect. It is either wasted through corruption or seepage,” said Mr Musyimi.

He was speaking during the launch of the 2014/2015 medium term expenditure framework (MTEF) budget process in Nairobi.

Mr Musyimi called for a better implementation of the government’s programme-based budgeting system which was adopted in 2007 to ensure key government initiatives are given priority.

However, as of last year, there were still weaknesses in the process, Mr Musyimi said. Key performance indicators attached to various programmes, he said, remained vague, frustrating accountability.

“During scrutiny of the 2013/2014 budget, my committee noticed a number of weaknesses in the way that the executive had presented the programme-based budget,” he said.

Mr Musyimi’s concerns come within the context of evidence from the Controller of Budget office that government departments are failing to appropriately utilise funds allocated to them.

Earlier in the year, Controller of Budget, Mrs Agnes Odhiambo, called on the government to rationalise expenditure, especially on hospitality and foreign trips, noting that Sh18 billion had been spent on state trips in the first nine