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Parliamentary committee raises concern over misuse of Judiciary funds

The Supreme Court building in Nairobi.

By Apollo Ochieng | Friday, February 16, 2024

According to the report tabled before the committee by the auditor-general, the fund which was established in 2012 to benefit judges, judicial officers, and staff, ought to have had a value of about Sh6.8 billion.

A Parliamentary committee has accused the Judiciary of misappropriating at least Sh1.3 billion meant for the mortgage of judiciary staff.

The National Assembly's Special Funds Account Committee made the claims after the Judiciary, through the acting chief registrar of the Judiciary Paul Ndemo failed to explain discrepancies flagged out by the office of the Auditor-General on the use of the fund.

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According to a report tabled before the committee by the auditor-general, the fund which was established in 2012 to benefit judges, judicial officers, and staff, ought to have had a value of about Sh6.8 billion.

However, documentation tabled before the committee and to the office of the auditor-general by the Judiciary, indicates that the value of the fund stands at about Sh5.5 billion, raising questions on the whereabouts of some Sh1.3 billion belonging to the kitty.

The committee, chaired by Migori County Fatuma Zainab, argued that the failure of the Judiciary to explain the cause of the discrepancies was alarming and raised serious questions about its management and implementation.

"The Judiciary's financial reports are lacking crucial details including, operating expenses, bank charges, commissions, and payments to the scheme administrator," Zainab said.

"Additionally, there was no comprehensive analysis of loan disbursements, repayments, or disclosure of mortgage loan interest," she added.

The audit report examined the management of the mortgage fund between the financial years of 2011 to 2021. The government has been funding the scheme annually since its inception.

The team stated that the Auditor-General's report revealed a lack of financial openness in the Judiciary.

During the meeting, members questioned the fund's management, which is controlled by an internal Judiciary Committee, for failing to deliver vital documents as required by regulations.

Members were also informed that the Judiciary just presented financial statements for the Mortgage Scheme Fund in February 2023, raising major concerns about the lengthy delay in reporting.

The committee raised concerns about the Judiciary's accountability and transparency due to a lack of paperwork that prevented the Office of the Auditor General from certifying compliance with established rules and laws.

The committee also raised concerns about the Judiciary's arrangement with Kenya Commercial Bank (KCB), whereby the bank was entitled to a three per cent administration.