MPs put public secretaries board on notice over unanswered auditueries

The National Assembly's Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA) has ordered the Registration of Certified Public Secretaries Board (RCPSB) to appear before it again after finding its responses to audit concerns incomplete and unsatisfactory.

Members of the committee raised concern over what they described as a continued failure by the Board's management to provide adequate records and explanations on a number of audit issues that have remained unresolved for years.

During the session on Tuesday chaired by Emmanuel Wangwe (Navakholo), lawmakers faulted RCPSB Chief Executive Officer Patrick Mulwa for appearing before the committee without sufficient documentation despite being required to account for the audit findings.

The committee heard that the Board's accounts had not been properly reviewed for more than three decades, dating back to 1990, making it difficult for management to explain various financial inconsistencies, including unexplained differences in cash balances.

Auditors also flagged several governance and financial management concerns within the institution. Among the issues raised were board expenses that consumed 22 per cent of the organisation's operations budget, exceeding the five per cent ceiling set under National Treasury regulations.

Members further questioned why the institution lacked an internal audit function and raised concerns over Mulwa's continued role as secretary to the audit committee, saying the arrangement goes against accepted governance practices.

The lawmakers openly challenged the Board's commitment to accountability and professional standards, arguing that the institution had failed to live up to the expectations of the profession it oversees.

“Mr. Mulwa, the institution you’re leading is a very important institution and by failing to maintain professional standards you’re letting it down”, Fatuma Abdi (Wajir) noted.

Joshua Kimilu (Kaiti) also faulted the CEO for failing to furnish the Committee with the documents required to address the audit concerns.

“Your failure to provide the required documents to this Committee is very wanting. It shows a lot of unpreparedness”, he noted.

Responding to the concerns, Mulwa acknowledged the financial differences highlighted in the audit and said they could have resulted from a transposition error. He also admitted that his submissions to the committee were prepared using preliminary management letters rather than the final audit reports.

Members expressed frustration at what they termed a repeated pattern of appearing before the committee without adequate preparation.

“Being the second time you have failed to provide proper documentation before this Committee we need to invoke Standing Order 191A and fine you Sh. 500,000 for any further shortfalls”, Wangwe underscored, pointing to the gravity of the matter.

The committee subsequently directed the Board to return before it with complete records and detailed responses addressing all outstanding audit matters.

The hearing concluded with an apology from Mulwa, who pledged to provide a comprehensive response during the Board's next appearance.

“I promise the Committee that we are going to sit down and work a response document that will satisfy the requirement of this Committee.”