Audit Report Unveils over Sh14bn Financial Mismanagement in Public Universities.
An audit by Auditor-General Nancy Gathungu for the year ending June 2022 has exposed widespread financial mismanagement, waste, and corruption in public universities, with losses exceeding Sh14 billion.
The report reveals weak oversight, ineffective financial systems, and extensive misappropriation of funds.
The audit identified multiple issues, including unsupported payments, irregular expenditures, and poor governance practices. The absence of proper documentation raised doubts about the authenticity of reported expenses.
Specific Issues Highlighted
The report outlines several avenues of financial malpractice:
- Irregular Payments: Universities made expenditures without supporting documentation.
- Weak Internal Controls: Dubious contracts and procurement processes exceeded approved budgets.
- Unauthorized Payments: Officials received payments without proper records.
Institutions Under Scrutiny
Maasai Mara University
Leading the list, Maasai Mara University in Narok County reported financial irregularities exceeding Sh3 billion. Key findings include:
- Payments to suppliers amounting to Sh641 million, with discrepancies of Sh287 million between financial records and bank statements.
- Unaccounted expenses of Sh113 million, including:
- Sh6 million on foreign trips to Dubai and Zanzibar for university council members.
- Sh55 million on goods and services.
The audit noted the absence of evidence such as travel itineraries, air tickets, boarding passes, and passports to justify these expenditures.
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Moi University
Moi University was flagged for unaccounted funds of over Sh1.6 billion. Specific irregularities included:
- Legal fees totaling Sh34.4 million paid to unnamed lawyers.
- Sh46.8 million spent on field courses, unsupported by travel documents.
- Payments of Sh262.1 million to casual staff, with no budget allocation, bank account details, or statutory deductions provided, suggesting possible embezzlement.
Egerton University
Egerton University in Nakuru County was cited for:
- An unauthorized bank overdraft of Sh239 million, violating National Treasury regulations.
- Unremitted staff salary deductions of Sh6 million, contributing to financial strain and repeated staff strikes.
Other Affected Universities
Additional institutions implicated in financial irregularities include:
- Technical University of Kenya: Questionable expenditures of Sh1 billion.
- University of Kabianga: Financial anomalies totaling Sh877 million.
- Kenyatta University: Sh835 million in mismanaged funds, including Sh430 million spent on its closed Kigali campus.
Jomo Kenyatta University of Agriculture and Technology (JKUAT)
JKUAT incurred losses due to:
- Payments of over Sh3.3 million for an undelivered dental chair.
- Over Sh3 million disbursed as irregular acting and special duty allowances.
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Collective Losses Across Universities
At least nine universities disbursed Sh559 million in irregular allowances, overpayments, penalties, and avoidable legal costs. These findings highlight systemic failures across the higher education sector, underscoring the urgent need for reform.
Conclusion
The audit underscores the critical need for stringent financial oversight and governance reforms in public universities to curb corruption and mismanagement.
Audit Report Unveils over Sh14bn Financial Mismanagement in Public Universities.
