A parliamentary watchdog has called for a special audit of the Sh6 billion Judiciary mortgage scheme, which has been in operation for over a decade without a supporting legal framework, despite managing funds in excess of Sh5.3 billion.
The Public Accounts Committee (PAC) announced on Thursday that it will write to Auditor-General Nancy Gathungu, FCPA, requesting a special audit of the scheme.
The probe will seek to establish the fund’s governance structure, disbursement criteria, beneficiaries, and compliance with the Public Finance Management (PFM) Act.
Butere MP Tindi Mwale, who chairs the committee, noted that the memorandum of understanding (MOU) signed between the Judiciary and Kenya Commercial Bank (KCB) in 2011 was essentially a gentleman’s agreement that could be disregarded at any time.
According to Mwale, the special audit will also determine how the fund has been managed since its inception, including the legal basis of its transactions, the role of the National Treasury, and the beneficiaries of the mortgages.
“We will be asking the Auditor-General to undertake a special audit on this scheme, including the MOU entered into between KCB and the Judiciary.
Because you see, an MOU is a gentleman’s agreement. We are talking about five billion shillings.
What happens in the future if KCB tells you, ‘We don’t have the funds, we can’t lend you for the next five to ten years’? What will you do?” Mwale posed.
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