No back-up for financial system

President Uhuru Kenyatta and Deputy President William Ruto (right) are shown how the Treasury’s e-procurement system works by IFMIS director Jerome Ochieng during the launch on August 13, 2014. Kenya does not have back-up for its financial system, putting government transactions at risk if it is compromised. FILE PHOTO | EVANS HABIL |  NATION MEDIA GROUP

In Summary

• Mr Ochieng told the Public Accounts Committee that all data in the country’s financial management system is backed up at Herufi House and plans to set up a recovery centre have been stalled by lack of funds.
• The security lapse was revealed yesterday after National Treasury Cabinet Secretary Henry Rotich assured the House committee that a comprehensive audit of the system by the auditor-general was underway.
• Mr Ochieng said the system had started procurement for a disaster recovery centre last year but the Public Accounts Committee slashed its budget until next year.

By NGARE KARIUKI
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Kenya does not have back-up for its financial system, putting government transactions at risk if it is compromised.

The state-of-the-art Integrated Financial Management Information System does not have a disaster recovery centre in case its servers at Herufi House in Nairobi malfunction, Director Jerome Ochieng revealed yesterday.

Mr Ochieng told the Public Accounts Committee that all data in the country’s financial management system is backed up at Herufi House and plans to set up a recovery centre have been stalled by lack of funds.

This means that in the event the system collapses, much of the planned spending of the Sh2.1 trillion budget would be impossible to track.

It would also not be possible to keep all government agencies financially accountable, a loophole that may see corrupt public officials targeting the servers to cover their trail.

The security lapse was revealed yesterday after National Treasury Cabinet Secretary Henry Rotich assured the House committee that a comprehensive audit of the system by the auditor-general was underway.

Mr Rotich defended the system, describing it as “robust and internationally tested”.

But committee chairperson Nicholas Gumbo said the auditor-general had earlier told the team he was facing resistance from the Treasury in the audit.

Mr Rotich told the committee he was cooperating fully and had not been made aware of any differences between the two offices.

“I was in touch with the auditor-general’s office as recently as yesterday and I was not told of any misunderstanding. As far as I know, we are cooperating fully,” he said.

He said the only reason Kenyans became aware of the attempt to steal Sh826 million through the National Youth Service computer system is because the financial information system did its job.

“We would not have been able to detect the attempt (had it not been) for the efficient audit trail generated by the system,” he said.

Mr Gumbo said it was surprising that such an important issue like back-up had been overlooked.

“In the 10 years the system has been running and everything getting centralised, how is it possible that a disaster recovery centre was not a priority?” he asked.

The only back-up of financial data stored by the system is housed at Herufi House, where Kenya National Bureau of Statistics servers are also housed.

Incidentally, a fire caused by an electrical fault gutted the server room in 2013, damaging records.

“Herufi House is a sitting duck. Is it the ideal location for a data centre?” asked Mr Gumbo.

Mr Ochieng said the system had started procurement for a disaster recovery centre last year but the Public Accounts Committee slashed its budget until next year.

“We gave it the priority it deserves but you stopped us by reducing our budget,” he told the committee.

Mr Rotich and Mr Ochieng appeared before committee in the wake of the controversy on the attempted theft of Sh826 million through suspicious procurement requests.