Ruto’s move to audit public debt hits roadblock

The Law Society of Kenya (LSK) has opposed President William Ruto’s order to set up a presidential task force to audit the country’s public debt, arguing that the move is unconstitutional as the mandate lies solely with the Auditor-General.

In a statement yesterday, LSK said that creating As stated in the recent official gazette, the establishment of a special task force for a period of 90 days to conduct a forensic audit of the public debt usurps the powers conferred on the Auditor General under Article 229 of the Constitution.

LSK noted that the clause requires the Auditor General to audit the public debt within six months of the end of each financial year, citing a recent High Court ruling that affirmed the role of the Auditor General in public audit matters.

“Taking into account the provisions of Article 229 of the Constitution and the court’s interpretation of that provision, we consider that the establishment of the working group is unconstitutional,” LSK said in a statement.

The association’s council has decided that neither the LSK president nor any of its members will participate in the task force. The LSK urged President Ruto not to undermine the constitutional authority of the Auditor-General through executive orders.

Instead, LSK recommends that public offices Debt management should Provide detailed information on public debt directly to the Auditor General for the required forensic audit, rather than creating a separate task force at the expense of scarce public resources.

“Taking into account the provisions of Article 229 of the Constitution and the court’s interpretation of that provision, we consider that the establishment of the task force is unconstitutional,” LSK said.

“The responsibility for auditing the public debt lies with the Office of the Auditor General.

The Kenya Law Society Council has therefore decided that neither our President nor any of our members may accept appointment or participate in the working group.”

“In addition, a public debt management office headed by the director general of the Ministry of Finance and funded by public funds should provide detailed information on public debt to the auditor general for forensic audit. Appointing a presidential task force to perform the duties of an existing public office must not waste scarce public resources.”

President William Ruto vetoed the 2024 Finance Bill early on Friday and unveiled a raft of austerity measures as he set up a task force to conduct a forensic audit of the country’s public debt, which officially stood at Sh10.39 trillion at the end of March this year.

The task force, which is tasked with conducting a comprehensive forensic audit of the country’s public debt and submitting a report within three months, will be chaired by Nancy Anyango and represented by Professor Luis Franceschi.

Philip Kaikai, president of the Kenya Institute of Public Accountants, Faith Odhiambo, president of the Kenya Bar Association, Shammah Kileme, president of the Kenya Institution of Engineers, and Vincent Kimosop were appointed as members.

Dr. Abraham Ruto and Dr. Aaron Thegeya will serve as Joint Secretaries.

The move stems from concerns about the accuracy of Kenya’s public debt data and, in particular, how loans are being used.

The duties of the Presidential Forensic Audit Task Force on Public Debt include verifying the current stock of public and publicly guaranteed debt.

It is also responsible for coordinating loan servicing/repayment and the terms and conditions of the loan facility, depending on the circumstances and the terms of the loan; and assessing whether the country is getting value for money in terms of loan terms, project costs financed, return on investment and equity.