Treasury plans new safeguards for auditors exposing corruption in public offices

Auditors working inside government ministries, counties and state agencies may soon be protected from threats, demotions and forced transfers after the National Treasury proposed fresh rules aimed at shielding officers who expose corruption and financial abuse.

The proposed amendments to the Public Finance Management regulations seek to guarantee protection for internal auditors who report fraud, suspicious payments and misuse of public resources while carrying out their duties.

Treasury is seeking to address growing concerns over the treatment of auditors who uncover graft within government institutions, with many previously facing intimidation, isolation or removal from their positions after exposing irregular dealings.

Under the proposed Regulation 163 of the Public Finance Management (National Government) Regulations, internal auditors acting in good faith would be protected from punishment linked to their audit work or disclosure of misconduct.

“No internal auditor shall be dismissed, demoted, suspended, harassed, discriminated against, intimidated, or experience any other form of retaliation” the proposed regulation states.

The changes would prevent government institutions from taking disciplinary action against auditors for reporting corruption or financial malpractice uncovered during investigations and reviews.

The proposals come in the wake of major corruption cases in which whistleblowers within government offices reportedly suffered retaliation after exposing questionable transactions.

Among the most well-known cases was that of former Ministry of Health head of internal audit Bernard Muchere, who brought to light the multibillion-shilling Afya House scandal in 2016.

Muchere questioned a series of procurement deals at the ministry, including the payment of nearly Sh800 million for 100 portable clinics that were never put into use despite full payment having been made.

The portable clinics were later found abandoned at a National Youth Service yard in Mombasa.

Shortly after exposing the matter, Muchere was redeployed from his position, a move that attracted criticism and was widely viewed as punishment for his role in revealing the scandal.

He later described how, during his final day in office, supervisors allegedly arrived with an armed Administration Police officer and a technician to change office locks as he finalized handover documents.

Another case cited involved forensic auditor Andrew Rotich, who helped uncover an alleged Sh21 billion fraud scheme at the former National Health Insurance Fund.

Treasury’s proposed reforms are expected to strengthen internal audit systems within public institutions and encourage officers to report misuse of public money without fear of losing their jobs or facing intimidation.