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{
    "id": 111665,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/111665/?format=api",
    "text_counter": 193,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "Government of Kenya together with the World Bank from July through September 2009, which indicated that there may have been integrity issues in some of the project expenditure to the tune of Kshs55,993,947, consisting of Kshs12,740,597 allegedly confirmed as fraud; Kshs41,563,154 as suspected fraud and Kshs1.7 million as attempted fraud. On the basis of that draft audit report, the Government suspended the funding of the project as well as the staff implicated in these practices on 23rd September, 2009. On the same day, on the basis of the Government action, the World Bank suspended the disbursements to the projects pending the completion and validation of the audit reports. Subsequently, a taskforce that included internal auditors was formed by the Permanent Secretary for Special Programmes and Permanent Secretary, Treasury, to undertake a validation exercise on the draft audit report. It was, therefore, confirmed that out of the Kshs55.9 million alleged to have been lost, Kshs11.5 million was the amount validated to have integrity issues of which Kshs5.4 million was under the confirmed category and Kshs6 million under the suspected category. (b) The Government has drawn an action plan which is agreeable between the World Bank and itself and is, therefore, implementing the following steps in bringing the project back on track: (i) Disciplinary action has been taken against officers suspected to have been complicit. Also procedures for recovery of funds have been instituted for seven line Ministry staff members. (ii) The Kenya Anti-Corruption Commission (KACC) has taken documents relevant to fraudulent transactions and to date, one officer has already been arraigned in court. (iii)Other investigations were conducted and concluded by the anti-banking fraud and the officers involved would have their cases commence in court by 1st April, 2010. On when the project may resume, this is a decision that lies between the Office of the Deputy Prime Minister and Ministry of Finance and the World Bank."
}