Treasury on the spot for irregularly withdrawing Sh6.3 billion from coffers

In a startling revelation that has sent shockwaves through the corridors of power, top officials from the National Treasury find themselves under intense scrutiny.

The spotlight is on them for allegedly withdrawing a staggering sum of Sh6.3 billion from the Consolidated Fund without the necessary approval from Parliament.

This hefty amount was purportedly utilized for the acquisition of shares in two prominent African banks during the final year of the previous administration.

An exhaustive forensic audit conducted by Auditor-General Nancy Gathungu has unearthed some alarming findings.

According to her report, the government, through the National Treasury, purportedly procured shares in the Eastern and Southern African Trade Development Bank and the Africa-Export Import Bank (AFREXIMBANK), valued at Sh1,296,757,668 and Sh5,013,200,450 respectively.

This cumulative investment amounted to a staggering Sh6,309,955,118.

Gathungu raised concerns over the Treasury's exploitation of Article 223 of the Constitution, which allows for the expenditure of funds not approved by Members of Parliament under specific circumstances.

"The information on the shareholding of AFROEXIMBANK was received after the special audit report was submitted to the National Assembly. We will verify this information with the National Treasury," Gathungu stated.

However, she lamented that their request regarding the shareholding in the Eastern and Southern African Trade Development Bank remains unanswered.

The report further highlights the lack of confirmation regarding the actual purchase of shares and the absence of evidence suggesting any potential benefits to the Kenyan government.

It indicates that these transactions took place during the financial year 2022/23, adding another layer to the controversy surrounding the Treasury's financial dealings.