Corporates Kenya


𝐅𝐫𝐢𝐝𝐚𝐲, 𝟏𝟏𝐭𝐡 𝐀𝐮𝐠𝐮𝐬𝐭 𝟐𝟎𝟐𝟑.

𝐌𝐚𝐜𝐡𝐚𝐤𝐨𝐬 𝐂𝐨𝐮𝐧𝐭𝐲

Today, the National Assembly’s Decentralised funds accounts committee held a meeting with the board of the National Government Constituency Development Funds (NG-CDF) to review their financial statements for the financial years 2015/2016, 2016/2017, and 2017/2018. Led by Mwingi Central MP. Hon. Gideon Mulyungi, the committee aimed to further examine the queries raised by the Office of the Auditor General.

During the meeting, the board’s CEO, Mr Yusuf Mbuno, appeared before the committee to provide clarification on the issues raised by the Auditor General. One of the significant concerns highlighted was the loss of funds due to bank fraud. It was discovered that the board’s accounts were hacked in 2016, resulting in the loss of Kshs. 32 million. However, the culprits have already been apprehended, and the matter is currently being addressed in court.

The audit also shed light on the board’s loss of Kshs. 332 million held in an account at Chase Bank, which subsequently collapsed. Fortunately, since the takeover by SBM Bank, the board has managed to recover 75% of the funds, while the remaining 25% is being held by the Kenya Deposit Insurance Corporation (KDIC).

The committee sought explanations as to why, the board still had not received the funds several years after. The chair expressed his disappointment, stating, “It is very disheartening that after eight years, public funds held in government accounts can disappear, and little be done to recover them or prosecute those responsible.” He further pledged to reach out to KCB bank, the Director of Public Prosecution (DPP), and the KDIC to address the matter thoroughly.

The Committee also expressed concern over the numerous errors brought to light in the Auditor General report. In response, the CEO recognized that had been capacity deficiencies among the board’s staff. The CEO further explained that managing 292 financial statements had been a daunting task, but assured the Members that they had subsequently hired more personnel to tackle this problem.

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