Why principal secretaries are next on Ruto's chopping board

A directive that principal secretaries acting as accounting officers will be fired if Auditor General establishes audit queries is pushing some of them to consider quitting the public sector, The Standard has learnt, even before their contracts end.

Prime Cabinet Secretary Musalia Mudavadi issued the directive after several permanent secretaries and heads of state agencies failed to answer audit queries in the latest Auditor General reports currently filed in parliament. These reports highlight the massive misappropriation of funds and theft of public resources across various ministries and state agencies.

“The NDIC noted the Zero Fault Audit Report that seeks not to attract a single audit query from the Office of the Auditor General (AOG),” a Cabinet dispatch titled “Dispatch 2 of 2024” from the National Development Implementation Committee (NDIC) stated.

The NDIC meeting, chaired by Mudavadi and steered by Head of Public Service Felix Koskei, was held at the Kenya School of Government just hours before President William Ruto dissolved his first Cabinet on the same day. The decision to dissolve the Cabinet followed nationwide protests by Gen Zs, sparked by perceived opulence and widespread corruption within Ruto’s administration.

The Auditor General has already flagged Sh147 billion in withdrawals by the Treasury without parliamentary approval, raised concerns about Sh1.4 trillion in commercial loans taken by the government without consulting the Attorney General, significant discrepancies in tax revenue collection, and outstanding refund claims amounting to hundreds of billions, including one billion paid to private universities by the government, Sh32 billion at Hustler Fund, and tens of billions misappropriated at the National Health Insurance Fund (NHIF) among others.

“Upon consideration of the above report, NDIC directed PSs to ensure Heads of Accounts complete all financial statements by 10th August 2024, and PSs must attend audit entry meetings to ensure the reduction of wastages in public penalties, fines, and legal consequences, which take away resources from development,” the dispatch, accessed by The Standard, explained.

Accounting officers believe the directive exposes them, as many leaders, particularly MPs, have been using their positions to push for tenders without following proper procedures. This has left many PSs with audit queries, and hence want to resign to protect their careers.

The dispatch dated Thursday, July 11th, 2024, explained that the objective of the Zero Fault Report is to reinforce good governance, integrity, accountability, transparency, and the establishment of global best practices within MDAs.

Mudavadi, also the acting Cabinet Secretary for the 21 ministries, instructed the permanent secretaries and heads of parastatals to comply with the Ethics and Anti-Corruption Commission (EACC) and the Auditor General by providing all necessary documents and details.

“It was clear that all accounting officers facing audit queries will go home. And actually, most officers are facing them or they fear that with powerful people in the presidency, they are likely to be dragged into audit problems. It is clear that most PSs do not decide what to spend on, and that it is decided elsewhere,” a PS who attended the meeting said.

Defense CS nominee Aden Duale stated on Facebook that the meeting focused on a wide range of national and international issues, underscoring the government’s dedication to tackling development challenges and advancing Kenya’s strategic interests.