Auditor-General Nancy Gathungu has questioned the accuracy of Sh8.43 billion third-party deposits to the Judiciary after it emerged that part of the amount is still held by ex-Treasury employees while some former court workers had pilfered portions of the collections.
The Auditor-General said Sh352.9 million linked to 72 court stations was held by former district treasuries and had not been transferred back to the Judiciary despite gaining independence in 2010 under today's Constitution.
"The balance includes general deposits for various court stations amounting to Sh7,322,048,732 out of which an amount of Sh352,938,472 relates to deposits for seventy-two (72) court stations held by the former District Treasuries that have not been paid to the Judiciary,” Ms Gathungu said.
“Although, management had written to the Principal Secretary for the Treasury vide letter dated December 29, 2021, requesting confirmation of the liability, the National Treasury did not acknowledge the same to date” she added.
Ms Gathungu adds that there was Sh150.75 million stolen by staff members in Embu, Malindi, Molo, and Nakuru courts in 2017/2018 and accrued from years before. The case was referred to the Directorate of Criminal Investigation (DCI) and the Assets Recovery Agency (ARA) but the amount is yet to be recovered as of June last year.
“As previously reported in the Judiciary financial statements for the year 2022/2023, and as disclosed in Note 5, included in the third-party deposits balance are deposits amounting to Sh150,748,101 lost through theft by staff members in Embu, Malindi, Molo, Nakuru courts and Judiciary headquarters in 2017/2018 and prior financial years,” Ms Gathungu said.
"In the circumstances, the accuracy and completeness of the third-party deposits of Sh8,432,972,935 and the recoverability of the lost deposits could not be confirmed"the Auditor-General added. The auditor says there was no evidence of receivable or a contingent asset recognised in the deposit accountability statement for the lost deposits. Courts collect money that doesn’t belong to the Judiciary itself until the funds are either refunded, released, or forfeited.
The third-party deposits are in terms of fines and bail, security, compensation, and settlement or auction proceeds.
Ms Gathungu adds that Judiciary management was in breach of the law for failure to submit copies of monthly and quarterly bank statements for audit.
The arm of the government also failed to conduct internal audits for the deposits proving to be a pain point for Ms Gathungu in confirming the accuracy and completeness of the deposits’ internal controls.
The Judiciary has also not been paying its bills and carrying them forward to the next financial years affecting the budgetary provisions for the subsequent year as they form a first charge.
“On other important disclosures reflects pending accounts payables of Sh872,100,944 which was not paid during the year, but instead carried forward to the 2024/2025 financial year,” said Ms Gathungu.
“The balance includes pending payables of Sh82,455,478 relating to 2022/2023 and prior years and an amount of Sh791,432,670 or 91 percent incurred in the 2023/2024 financial year.”
