Ruto’s order puts Sh350 billion at risk of theft over weak Treasury controls, Auditor
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Auditor General warns that government may be at risk of losing Sh350 billion following Ruto's order for a single payblill account for all payments
Auditor General warns that government may be at risk of losing Sh350 billion following Ruto’s order for a single payblill account for all payments.
President William Ruto’s decree to have a single Paybill account for all government payments has raised the possibility of billions being stolen due to lax safeguards, according to Auditor General Nancy Gathungu.
In contrast to the past, when each agency had a separate paybill collection, Ruto’s order, which went into effect in July, requires all state bodies to channel all of their collections, including charges and fees, through a single paybil, 222222.
About Sh350 billion is expected to be collected by government ministries and public institutions as fees and charges for service delivery in the current financial.
Speaking before the National Assembly Budget and Appropriations Committee, Auditor General said there are problems with the structures put in place to ensure checks and balances in the initiative
“I have already raised some concerns with the treasury about internal controls. If we decide to put all our eggs in one basket, we must be sure that we have plugged all the loopholes in revenue collection,” she told MPs.
All state departments shut down their paybill numbers, estimated to be 1,488, and adopted the new number in line with Ruto’s order.
Ruto explained that the switch was part of his government’s realignment of its financial management.
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The directive has further caused confusion as State agencies struggle to figure out the new payment channel, which recently resulted in some tourists being blocked from accessing parks because they could not make payments.
Ms Gathungu noted that the government was suffering from revenue delays as public entities struggled to migrate to the new system.
“Government departments are now struggling to configure their systems to ensure that they comply with the guidelines that have been issued. There is a a delay, in revenue collection as people are confused about what to do,” she said.
According to the Treasury, the new directive will help the government, which is struggling with debt repayments, to consolidate funds and prevent cash-rich state agencies from holding idle cash.
The concerns by Auditor General comes against the backdrop of previous reports issued by her office on rampant waste, theft and other leakages and which highlights the risks that may not have been addressed.
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