The Standing Committee on Public Accounts has raised concerns over more than $18.5 million in unused funds that remained with M-Paisa and MyCash after the completion of a government program, with auditors unable to sight documentary evidence authorising the retention.
In its review report on the Compliance Audit Report, the committee noted that $18,511,428 remained with the two service providers following the completion of the programs, namely the COVID-19 Cash Assistance Program and the Food Ration Distribution Program.
The Ministry of Finance informed auditors that the Permanent Secretary had approved retaining the money for future initiatives.
However, the audit found that documentary evidence supporting that approval could not be sighted.
The committee said the situation raised concerns about transparency and compliance with financial management requirements.
It recommended that formal documentary approval be maintained whenever government funds are retained in service provider accounts after the completion of a program.
“Ensure unutilized balances are either promptly returned to the Consolidated Fund or formally reallocated with clear authorization,” the committee recommended.
The committee also stressed the need for stronger procedures governing the management of public funds, particularly during emergency or unpredictable situations.
“The Committee further emphasizes the importance of developing clear guidelines, procedures, and protocols to address future unpredictable events,” the report stated.
It said structured frameworks should be established covering risk assessments, documentation requirements and digital verification.
“Establishing structured frameworks for risk assessment, documentation standards, and digital verification mechanisms will ensure that emergency responses are not only swift but also transparent, accountable, and resilient,” the committee said.
The findings highlight the committee’s push for a clear audit trail when unused government funds remain outside the Consolidated Fund following the completion of publicly funded programs.
