Home Business Education ministry fails to account for Sh5.5bn varsity grants

Education ministry fails to account for Sh5.5bn varsity grants

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Economy

Education ministry fails to account for Sh5.5bn varsity grants


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Education CS George Magoha. FILE PHOTO | NMG

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Summary

  • Education ministry has failed to account for Sh5.5 billion in capital grants to universities, raising doubts on the authenticity of the reported spending.
  • Auditor-General Nancy Gathungu says the University Education Department could not provide contract documents, valuation certificates and projects status reports to support the expenditure in the year to June 2020.

Education ministry has failed to account for Sh5.5 billion in capital grants to universities, raising doubts on the authenticity of the reported spending.

Auditor-General Nancy Gathungu says the University Education Department could not provide contract documents, valuation certificates and projects status reports to support the expenditure in the year to June 2020.

Development budgets to all universities depend on specific project completion certificates submitted to the ministry for consideration and concurrence.

“It was, therefore, not possible to confirm the validity and propriety of capital disbursements totalling Sh5,580,848,844 for the year ended June 30, 2020,” the latest report of the Auditor-General tabled in Parliament states.

The report further states that Multimedia University received Sh619.5 million above the approved budget during the period under review.

The revelation comes at a time universities are grappling with stalled projects and huge debts due to budget cuts and the decline in the number of parallel degree students.

In the just-concluded financial year, the universities had asked the Treasury for an additional Sh20 billion to ease their cash flow challenges. The State, however, declined.

The Treasury allocated the university education vote Sh113 billion in the year, which is Sh10 billion less than the Sh123.6 billion the institutions received in the year to June 2020.

Treasury PS Julius Muia told Parliament lower revenue due to the Covid-19 pandemic necessitated the cut.

The Auditor-General also raised the red flag on the propriety of another Sh834.8 million in capital grant disbursed to six public universities, which is not linked to specific projects.



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