Public officials to be fined for unaccounted government money

The government has mandated a surcharge on all civil personnel in public enterprises if money has been lost or is unaccounted for.

According to a letter from the Chief of Staff and Head of Public Service, Felix Koskei, the government has directed that public officers accountable for any loss of public resources be searched.

Koskei ordered, “Develop a procedure to ensure regular surcharges to recover any loss of public resources henceforth.”

A surcharge is a financial penalty imposed on public officers, such as accountants, who are judged to have mismanaged or misappropriated public resources.

This step is generally conducted in response to audits or investigations that discover errors in financial records or misuse of funds.

Furthermore, Koskei has urged government agencies to take action against civil servants named in internal and external audit reports for misconduct that has resulted in the loss of public funds.

In his letter, the Chief of Staff directed public entities to send incidents that require further inquiry to the Ethics and Anti-Corruption Commission (EACC) for appropriate action.

“Initiate measures to sensitise and educate staff under your jurisdiction about the practices and procedures necessary to achieve sound fiscal discipline and integrity in the use of public resources,” Koskei mandated.

The letter was sent to all Principal Secretaries, Chairpersons, and Chief Executive Officers of independent constitutional commissions and offices.

It also included the leadership of state businesses, semi-autonomous government agencies (SAGAs), and unincorporated state entities.

The government’s judgment is based on Section 74 of the Public Finance Management Act of 2012, which requires accounting officers to take disciplinary action against public officials involved in financial malfeasance.

According to the notification, the government will take action against public officers who violate the Public Finance Management Act, fail to fulfill their accounting responsibilities or undermine financial management systems and controls inside their organizations.

Koskei further warned that any public servant who authorizes or accepts unauthorised or unlawful expenditure, or who fails, without fair justification, to settle eligible and approved bills promptly despite the availability of cash, would suffer penalties.

These policies are part of the government’s larger efforts to ensure the wise, accountable, and effective use of public resources by all public entities.