Post by job on May 14, 2011 21:20:23 GMT 3
Credible sources within Treasury can confirm that ministry officials are working overtime this weekend preparing another "budget typo" excuse to explain away the massive discrepancy between Revenue figures actually received, and that deposited into Treasury.
SUMMARY ABOUT THE MASSIVE DISCREPANCY
1) Mars Group Kenya started this with yet another meticulous scrutiny of the Auditor General’s report revealing massive discrepancies in revenue estimates for the last two financial years when Uhuru Kenyatta has been at the helm of Treasury.
Wake up from the hang-over
Finance Minister Uhuru Kenyatta of the 'typo error' fame
In short, what they found is that monies collected by KRA and other agencies from Taxes, Levies (roads, petroleum), Customs, VAT imports and such, don’t match what Treasury (& Central Bank) report receiving!
Where are the unaccounted billions going to?
2) In trying to get an answer to that million-dollar question, Gwassi MP Mbadi, repeatedly demanded (at least three times) a Ministerial Statement from Uhuru Kenyatta since April 21st, 2011.
3) With no answer forthcoming, Speaker Kenneth Marende, in yet another Solomonic ruling – gave Finance Minister Uhuru Kenyatta a firm ultimatum. On Tuesday 10th May, 2011, he directed that "neither the Deputy Prime Minister and Minister for Finance nor his Assistant Minister shall be permitted to transact any business in the House until it delivers the requested ministerial statement on Kenya’s status of Revenue".
4) The Finance Ministry is essentially paralyzed if it stays away from Parliament- which is supposed to approve all expenditure. But why is Uhuru Kenyatta taking too long to answer that question of massive discrepancy? What are they cooking this time? Another ‘typo error’ excuse?
Below are extracts of the HANSARD on the request for the statement.
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NATIONAL ASSEMBLY
OFFICIAL REPORT
Thursday, 21st April, 2011
The House met at 2.30 p.m.
[The Temporary Deputy Speaker
(Prof. Kaloki) in the Chair]
POINT OF ORDER
STATUS OF TAX ACCOUNT AT THE TREASURY
Mr. Mbadi: On a point of order, Mr. Temporary Deputy Speaker, Sir. I want to
quickly seek a Ministerial Statement from the Deputy Prime Minister and Minister
for Finance on the status of the Tax Account at the Treasury. I want the
Minister to explain to this House whether our Tax Account, and specifically
Revenue Heads, are properly kept and explain the following:-
(i) the number of revenue statements that were certified by the Controller and
Auditor- General for the financial years 2007/2008 and 2008/2009;
(ii) I would like the Minister to further give the actual receipts of revenue
for the year 2007/2008 and 2008/2009 in respect to the following revenue
heads:-
1. mining revenue,
2. profits and dividends,
3. fines, penalties and other charges,
4. taxes on income, profits and capital gains,
5. taxes on goods and services,
6. taxes on international trade and transaction,
7. other taxes (not elsewhere classified),
8. property income interest receivable,
9. property income, rent on lands,
10. sales of goods and services,
11. other records not classified elsewhere,
12. repayment from domestic lending and onlending,
13. tourism and wildlife,
14. trading licences.
Finally, could the Minister clarify whether the receipts of revenue for the
Years 2007/2008 and 2008/2009 as declared to Parliament in the Estimates of
Revenue reflect the actual receipts into the Exchequer Account for the
respective revenue heads and for the same period?
The Minister for Transport (Mr. Kimunya): Mr. Temporary Deputy Speaker, Sir, I
expect that all this information is already in the public domain, having been
summarized in the accounts which are already being looked at by the Public
Accounts Committee (PAC).
Nevertheless, I will ask the Minister to provide the same by Thursday next
week.
The Temporary Deputy Speaker (Prof. Kaloki): Very well. Mr. Mbadi, I think next
Thursday is---
Mr. Mbadi: I am satisfied, Mr. Temporary Deputy Speaker, Sir
NATIONAL ASSEMBLY
OFFICIAL REPORT
Thursday, 28th April, 2011
The House met at 2.30 p.m.
[Mr. Speaker in the Chair]
STATUS OF REVENUE ACCOUNT AT TREASURY
Mr. Mbadi: Mr. Speaker, Sir, on Thursday, last week, I asked for a Ministerial
Statement from the Deputy Prime Minister and Minister for Finance with regard to
the revenue account kept at the Ministry. I was promised by the Government,
through the Deputy Leader of Government Business, that it would be brought this
afternoon. I did not get any indication as to why that did not happen.
Mr. Speaker: Order! The Deputy Prime Minister and Minister for Finance actually
came to the Chair and intimated that he would have been ready with the
Statement, but as you can see, we have run out of time. So, we will have to take
this on Wednesday morning if that is fine with you, Mr. Deputy Prime Minister
and Minister for Finance. The Member for Gwassi, please, be available on
Wednesday morning. That then brings us to the end of that Order
NATIONAL ASSEMBLY
OFFICIAL REPORT
Wednesday, 4th May, 2011
The House met at 9.00 a.m.
[The Temporary Deputy Speaker
(Prof. Kaloki) in the Chair]
DELAYED DELIVERY OF A MINISTERIAL STATEMENT
Mr. Mbadi: On a point of order, Temporary Deputy Speaker, Sir. There is a
Statement which was supposed to be delivered to this House. I had sought the
Statement from the Deputy Prime Minister and Minister for Finance. I have
reliably been informed by Mr. Muriithi that the Statement will not be available
today. However, I think it is procedural that he says so himself.
The Temporary Deputy Speaker (Prof. Kaloki): Hon. Mbadi, you should have let the
Assistant Minister deal with it himself. Yours is to ask and wait for the
Government side to respond.
The Assistant Minister for Industrialization (Mr. Muriithi): Mr. Temporary
Deputy, Sir, we should be allowed to bring it on Tuesday. As you know, the
Assistant Minister is indisposed. That is why we are asking for Tuesday.
The Temporary Deputy Speaker (Prof. Kaloki): Very well. I know that you are
holding brief for that Ministry. Hon. Mbadi, are you in agreement that the
Statement should be issued next Tuesday?
Mr. Mbadi: Mr. Temporary Deputy Speaker, Sir, yes, I am in agreement. I only
hope that next time, if the two Ministers will not be available, then it will be
delegated to another Minister.
NATIONAL ASSEMBLY
OFFICIAL REPORT
Tuesday, 10th May, 2011
The House met at 2.30 p.m.
[Mr. Speaker in the Chair]
POINTS OF ORDER
STATUS OF REVENUE ACCOUNT AT TREASURY
Mr. Mbadi: On a point of order, Mr. Speaker, Sir.
Mr. Speaker: What is it, Member for Gwassi?
Mr. Mbadi: Mr. Speaker, Sir, on 28th April, 2011, I sought a Ministerial
Statement from the Deputy Prime Minister and Minister for Finance with regard to
discrepancies between the revenue reporting from the Exchequer Account and that
which has always been submitted to the House through Budget Estimates. The
Ministerial Statement was supposed to come almost two weeks ago, but it did not.
It was supposed to come last Wednesday but on that very Wednesday morning, hon.
Muriithi reported to this House that the Assistant Minister was unwell, and that
the Deputy Prime Minister and Minister for Finance was away. In the afternoon,
both of them were here, after delivery of the Ministerial Statement had been
deferred to today.
Mr. Speaker, Sir, I am concerned because the Minister is not even here, yet a
commitment was given that today would be the last day for the delivery of this
particular Ministerial Statement. The Ministerial Statement I have sought is
very serious. It requires very serious information which borders on this House
being misled into approving figures which are not correct, and into accepting
revenue collection which is not the actual revenue collected.
Therefore, I am seeking your guidance on how I can be helped to force the
Minister to bring the Ministerial Statement to this House. I would have said
other informal things that the Minister has told me but, please, may I get
direction on this matter?
Mr. Speaker: Mr. Mbadi, you are an hon. Member of this House. So, if you
disclose to the House the informal things, the House will take you very
seriously. So, why do you not proceed? What are the informal things that he has
told you?
Mr. Mbadi: Mr. Speaker, Sir, I would just wish that this Ministerial Statement
is brought, so that I can comment.
Mr. Speaker: We have a comprehensive Bill of Rights. So, I will allow you to
make your choice. However, if you have anything that you think the House should
know, you have to say it. It is wrong for you to whet the appetite of the House
and then decline to disclose what you know. That notwithstanding, Mr. Muriithi,
did you communicate to the Minister that the Ministerial Statement had been
deferred twice, and that was the third time it was being deferred?
The Assistant Minister for Industrialization (Mr. Muriithi): Mr. Speaker, Sir,
first of all, I would like to correct the hon. Member. I made the undertaking
but it was on Wednesday, and not Wednesday morning. I did communicate the
information to the Minister.
Mr. Mbadi: On a point of order, Mr. Speaker, Sir. First of all, we must be
factual. It was actually on Wednesday morning, and not on Wednesday afternoon;
the Minister was present in this House. I was very keen. I could not have got
that one wrong. The HANSARD will bear me witness.
Mr. Speaker, Sir, the Government has either not understood why I have sought
this Ministerial Statement or they have understood but they deliberately want to
deny this House very important information.
Mr. Speaker: Order, Member for Gwassi! Now that hon. Muriithi did not claim
ignorance, I am certain that the Deputy Prime Minister and Minister for Finance
has understood the import of your request. However, given that there has been
non compliance, and that this is the third time, I am afraid, I have to impose
sanctions at this point in time. I direct that neither the Deputy Prime Minister
and Minister for Finance nor his Assistant Minister shall be permitted to
transact any business in this House until that Ministerial Statement is
delivered. It does not matter what it will be, but there will be no business
transacted in this House pertaining to the Ministry of Finance until the
Minister has delivered the Ministerial Statement. This direction is binding on
all panelists who will preside over the business of the House until there is
full compliance.
AND HERE IS THE MARS GROUP SUMMARY OF THE AUDITOR GENERAL’S REPORT
www.marsgroupkenya.org/revenue
In it you notice:
(a) Kenya’s Controller & Auditor General has in his two latest reports found that only 1 out of 14 accounts, is clean upon Audit.
(b) Amounts being queried amount to a whooping Kshs 714 billion for the 2 years.
(c) The shocking possibility that Treasury has been keeping different sets of books for revenue collected.
(d) It's more than apparent now that Uhuru Kenyatta and his PS are now frantically trying to cover up and deceive the public with fresh revenue figures and excuses about revenue account ‘typo errors’.
(e) During the last budget typo fiasco, Parliament ruled that once it approves financial figures, Treasury cannot alter the figures. Doing so would be commission of serious and grave crime.
(f) Uhuru Kenyatta is in a big fix precisely because the figures on Revenue that he previously tabled Parliament don’t match with what the Auditor General reports, thus if he comes back and tables a different set of figures, he would be legally liable for commission of crime.
(g) I don’t think Kenyans need an answer from Uhuru Muigai Kenyatta at political rallies across the former Central Province, they need the answer right in Parliament, right now!
