The Auditor-General, Nancy Gathungu, has urged for stronger measures to enhance accountability in municipalities and hospitals, citing concerns over the misuse of public funds and lack of transparency in financial reporting.
Speaking during a meeting with the Senate County Public Investments and Special Funds Committee at Parliament Buildings, Gathungu highlighted the growing gaps in financial accountability in public institutions, particularly municipalities and Level 4 and Level 5 hospitals.
Chaired by Senator Godfrey Osotsi, the committee convened to discuss the Auditor-General’s findings following an earlier letter that flagged the irregularities.
Gathungu’s appearance before the committee underscored the importance of audits in ensuring that public funds are utilized effectively, emphasizing the critical role Senate watchdog committees play in enforcing accountability.
“The Auditor-General and Senate committees have a mutually beneficial relationship. We depend on the committees to enforce our audit recommendations, while they rely on us for accurate and comprehensive reports,” Gathungu said.
In her report, Gathungu expressed concern over the financial state of municipalities. Out of 110 municipalities, only 46 had submitted financial statements for auditing as of June 2023.
Common issues identified included non-submission of financial statements, errors in reports, procurement violations, and a lack of integrated development plans.
Gathungu stressed that these challenges jeopardize the effectiveness of service delivery at the local level.
Additionally, she highlighted the lack of transparency in hospitals, revealing that only 15% of Level 4 and Level 5 hospitals submitted financial statements for the 2021/2022 fiscal year, with a slight improvement to 56% in 2022/2023.
Gathungu noted that these failures violate the Public Finance Management Act and compromise the quality of healthcare services.
“The failure to submit financial statements hampers transparency and accountability in healthcare delivery, and this must be addressed urgently,” she emphasized.
The Senate committee is expected to further investigate the issues raised and collaborate with the Auditor-General to ensure that municipalities and hospitals comply with financial management laws, promoting efficient use of public resources.
