Mudavadi appoints interim Inspector General for (State) Corporations

Prime Cabinet Secretary Musalia Mudavadi has announced a number of measures to tighten the noose on corrupt government officials, including rogue parastatals and State corporation CEOs accepting personal accountability for some decisions taken.

Mudavadi declared that the newly established Inspectorate of State Corporations , which is housed in his office, will undergo a thorough makeover and revitalization to increase its capacity to play a more active part in the fight against corruption and financial misappropriation in State enterprises.

“Of the total amount of unpaid invoices, which is KSh481 billion, KSh401 billion is due primarily by State businesses and Semi-Autonomous Government Agencies. This striking disparity raises questions about the flagrant infractions and disrespect for the law that some State enterprises have,” according to Mudavadi.

He asserted that the aforementioned acts ought to serve as a warning to all employees who might be tempted to commit corruption or misuse public monies, as the ISC starts his work.

According to Mudavadi, the ISC  would work to find and disclose any irregularities so that those responsible face the full weight of the law.

In an executive order signed by President William Ruto in October of last year, Mudavadi was elevated to the third-highest position in the government, with the responsibility for managing government operations, coordinating the national legislative agenda, and supervising the execution of state policies, programs, and projects.

Along with performing any other duties the President may assign, Mudavadi is also expected to coordinate and oversee the technical monitoring and assessment of government policies, programs, and projects across ministries.

Mudavadi warned that the situation was untenable and could not be allowed to continue in a stern letter to the institutions that was seen by The Standard. He claimed mismanagement, corruption, and theft of cash intended to improve Kenyans’ lives cannot continue.

James Warui has been appointed on an interim basis, with instructions to ensure the efficient operation of state corporations as part of a number of initiatives to simplify operations. He is also mandated to protect public funds and ensure there is value for money.

In order to combat corruption and the abuse of public funds in State enterprises, he highlighted that his action is a part of the ISC’s redesign and revitalization.

“With this in mind, Mr. Warui has the full backing of the government as well as myself as he works to develop the ISC’s capacity to protect the public’s interests and hold those in State enterprises who dare commit wrongdoing accountable. The emphasis must be on preventive and deterrent measures, specifically,” added Mudavadi.

“Under the provisions of the State Corporations Act (Chapter 446 of the Laws of Kenya), the Inspector-General (Corporations) is vested with powers that include the authority to call for and inspect all relevant records, documents, and premises of State Corporations, as well as to attend their meetings if necessary.”

Additionally, the Inspector-General has the power to certify the amount owed from those held accountable, surcharge anyone who do unauthorized or careless acts, and deny illegal expenditures. I do not anticipate any exceptions or exemptions from ISC in the execution of this requirement.

The Kenya Medical Supplies Authority (Kemsa) and the National Hospital Insurance Fund (NHIF), according to recent reports of cases involving the misappropriation of public funds in the health sector, have highlighted the urgent need for stronger measures to prevent corruption and enforce accountability in government organizations, according to Mudavadi.

“Under powers vested in the Office of the Inspector General (Corporations) Section 18(2) of the State Corporations Act, inspectors have been deployed to these institutions to safeguard public funds and conduct thorough investigations into the reported improprieties with a view to surcharging all those involved,” stated Prime CS.

Mudavadi stated that in order to prosecute the offenders, the inspectorate will cooperate with other organizations that uphold integrity, including the Office of the Auditor General, the Director of Criminal Investigations, and the Ethics and Anti-Corruption Commission.

He reminded public servants of their obligation to Kenyans to uphold the responsible and accountable fulfillment of their jobs and to lead the charge in identifying and exposing wrongdoers in State enterprises who are enticed to participate in fraudulent activities.

The chief cabinet secretary advised good-willed Kenyans to take part in this critical battle against corruption by using State firms’ services. “Kenyans’ participation in this effort will make it apparent that our society detests wrongdoing at all levels. We can reduce our tax burden by disclosing instances of improper use of public resources.”