It has emerged that a new directive issued by Prime Cabinet Secretary Musalia Mudavadi is causing a stir among principal secretaries (PSs), pushing some to contemplate resigning from their positions even before their contracts expire.
The Standard has learned that this move follows Mudavadi’s stern warning that PSs acting as accounting officers will be dismissed if the Auditor General identifies audit discrepancies.
Mudavadi’s directive came after numerous permanent secretaries and heads of state agencies failed to address audit queries highlighted in the latest Auditor General reports.
These reports, now filed in parliament, expose widespread misappropriation of funds and theft of public resources across various ministries and state agencies.
“The NDIC noted the Zero Fault Audit Report that seeks not to attract a single audit query from the Office of the Auditor General (AOG),” stated a Cabinet dispatch titled “Dispatch 2 of 2024” from the National Development Implementation Committee (NDIC).
The NDIC meeting, chaired by Mudavadi and led by Head of Public Service Felix Koskei, took place at the Kenya School of Government just hours before President William Ruto dissolved his first Cabinet.
The Auditor General has already flagged several financial discrepancies, including Sh147 billion in unauthorized Treasury withdrawals, Sh1.4 trillion in commercial loans taken without consulting the Attorney General, major discrepancies in tax revenue collection, and substantial outstanding refund claims.
Among these are a billion shillings paid to private universities, Sh32 billion at the Hustler Fund, and tens of billions misappropriated at the National Health Insurance Fund (NHIF).
Many PSs feel the directive unfairly targets them, as some leaders, particularly MPs, have been using their positions to push for tenders without following proper procedures.
The dispatch, dated July 11, 2024, aims to reinforce good governance, integrity, accountability, and transparency within MDAs by establishing global best practices.
Mudavadi, also acting as Cabinet Secretary for 21 ministries, instructed PSs and heads of parastatals to comply with the Ethics and Anti-Corruption Commission (EACC) and the Auditor General by providing all necessary documents and details.
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