Odinga Promises Action on Corruption Scandal

Ashley Lime

17 June 2011

Nairobi — The government has lost more than Sh300 million in yet another corruption scandal.

Prime Minister Raila Odinga announced the government was initiating a thorough review of the Arid Lands Natural Resource Management project to establish the extent of financial irregularities.

Mr Odinga has warned that any fraud noted in the review process would be referred to the Kenya Anti-Corruption Commission for investigation.

The move follows preliminary findings by a World Bank forensic audit that revealed fraudulent expenditures in the second phase of the project.

Forensic audit

The audit covered expenditures in seven districts over the 2006-2007 and 2007-2008 financial years and found possible sham spending in up to 29 per cent of the districts covered, totalling more than Sh300 million ($4 million).

The revelations led to the suspension of the project in July last year, after the World Bank received the results.

The project provided food-insecure pastoral communities with assistance to manage droughts and improve their livelihoods.

Finance minister Uhuru Kenyatta is deliberating with the World Bank on how to go on with “deep forensic audit” into claims of fraud and misappropriation of funds, though investigations into the arid lands project are ongoing.

Mr Odinga said that those involved in the fraudulent deals hindered efforts by the government and the World Bank to provide vital services to pastoral communities.

“I am concerned that INT (Intergrity) has found allegations of financial mismanagement in the project.

“If those allegations are substantiated, the government will take corrective action as quickly as possible, so that we can maximise our assistance to pastoral Kenyans,” said the PM.

The government, in collaboration with the World Bank, has resolved to review the INT report and use it to target areas with the greatest risk.This is meant to make the government aware of the impact of the findings on potential future work in arid and semi-arid lands.”The problems in the project require purposeful and convincing actions by the Government of Kenya,” said World Bank vice-president for Integrity Leonard McCarthy.

Constructive discussions

Following consultations held with government officials in Nairobi yesterday, World Bank vice president for Africa Obiageli Ezekwesili said the Constitution had provided Kenyans with the platform to demand for liability.

“We have had constructive discussions and will work closely with the government to resolve these issues comprehensively and in a timely manner.The arid lands programme kicked off in June 2003 with residents benefiting from more than 4,000 projects, including support for health clinics, schools, water, livestock and agriculture-related investments.

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