Members of Parliament have questioned the Kenya Law Reform Commission (KLRC) over Sh2.1 million in expenditure that was incurred without the required approval, with the Auditor-General warning that the commission failed to follow budget reallocation procedures.
The National Assembly Public Investments Committee on Governance and Education raised the concerns while scrutinising audit queries covering the 2018/19 to 2024/25 financial years.
The Committee focused on expenditure relating to commission activities, repairs and maintenance after the Auditor-General flagged spending above approved allocations.
According to the Auditor-General’s report, KLRC spent Sh20.6 million against an approved budget of approximately Sh18.5 million on commission expenses, resulting in an over-expenditure of Sh2.1 million, equivalent to 11 per cent.
The commission also spent about Sh3 million against an approved allocation of Sh2.6 million for repairs and maintenance, resulting in an excess expenditure of approximately Sh400,000, or 15 per cent.
Auditor-General Director of Audit Margaret Wambui told MPs that the additional expenditure had not gone through the required approval process.
“The main issue here is just about the budget reallocation, which they did not do,” Wambui said.
She explained that KLRC should have obtained approval from the commissioners before transferring funds between expenditure lines.
KLRC defends expenditure
The issue triggered a heated exchange between MPs and KLRC officials, who argued that the commission had not exceeded its overall approved budget.
Former acting KLRC Secretary/CEO Justice Peter Muneeno Musyimi said the apparent over-expenditure resulted from the reclassification of expenditure between the secretariat and commission accounts following recommendations made during the audit process.
Musyimi said KLRC had an approved overall budget of approximately Sh292.66 million, against which it spent about Sh291.99 million.
However, MPs rejected the explanation, saying the Committee was examining specific expenditure lines flagged by the Auditor-General rather than KLRC’s overall budget.
Committee Chairperson Dick Maungu said public institutions must operate within approved allocations and obtain the necessary authorisation before reallocating funds.
Central Imenti MP Moses Kirima demanded a clear explanation on whether KLRC exceeded its Sh2.6 million allocation for repairs and maintenance.
“If there was an approved budget, how much was used? Simple as that,” Kirima said.
Narok Woman Representative Rebecca Tonkei said KLRC should have secured approval before moving funds between budget votes.
“If there was an approval, you should have given it to the auditors,” Tonkei said.
Igembe Central MP Daniel Karitho said the central issue was not whether the funds had been lost but whether they were spent without the required authorisation.
“There was overspending. They overspent without authorisation,” Karitho said.
MPs demand supporting documents
KLRC Head of Finance Cornelius Musangi told the Committee that the expenditure had initially been approved but was later reclassified following advice from the Auditor-General during the audit.
The Auditor-General’s representatives, however, maintained that the key problem was the failure to obtain formal approval for the budget reallocation.
MPs also questioned why documents allegedly showing that the expenditure had subsequently been ratified by the commission were not presented during the audit.
In response, Musyimi undertook to provide the Committee with minutes showing that the commission had subsequently considered and ratified the expenditure.
Kirima, however, cautioned against relying on documents generated after the expenditure had already occurred, warning that such records could potentially be backdated.
Kasipul MP Boyd Were called for the exact expenditure to be fully accounted for before the Committee makes its final determination.
Maungu said the Committee would consider the matter further as it prepares its report.
He warned that if the Committee establishes that public funds were improperly spent, the officers responsible could be surcharged.
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