The Auditor-General notes that the government illegally used Ksh 1.13 trillion in costly loans over 11 and a half years up to 2021 for recurrent expenditures rather than development projects.....CLICK HERE TO READ THE FULL ARTICLE>>>
The special audit examined 13 expensive syndicated loans and sovereign bonds and found that, in violation of the law, the Consolidated Fund did not use the funds solely for development expenditures.
The Consolidated Fund uses loan proceeds for regular government expenditures due at the time, without maintaining a specific schedule for their use.
The audit reviewed 39 commercial loans valued at Ksh 1.36 trillion, borrowed between July 2010 and December 2021, and found that 26 of these loans were taken without obtaining the required legal opinion from the Attorney-General.
The country did not receive some of the loans, and foreign transactions took place, leaving the consolidated funds account unrecorded.
They include 16 dollar-denominated loans valued at Ksh 1 trillion, 22 euro-denominated loans valued at Ksh 288 billion, and a South Korean Won-denominated loan valued at Ksh 102 million, all from commercial markets.
The government’s inability to account for Ksh 1.13 trillion in loans, used illegally for recurrent expenses instead of development, is a clear violation of the law.
The special audit’s findings on the misuse of syndicated loans and sovereign bonds demand immediate accountability. Addressing this misuse of funds and ensuring proper legal procedures for future loans are crucial…CONTINUE READING>>
