Controller of Budget Warns of Impending Oversight Crisis Due to Funding Shortfalls

The Controller of Budget (CoB), Margaret Nyakang’o, warns that severe funding shortfalls may cripple key government oversight functions. Automation of financial processes is deeply affected, with no budgeted funds allocated for it. The Senate Finance Committee has raised concerns over drastic budget cuts and the implications for financial accountability within the government.

In a recent statement, the Controller of Budget (CoB), Margaret Nyakang’o, has raised concerns regarding significant funding shortfalls that threaten vital government oversight functions. One major area impacted is the automation of financial oversight processes, which is essential for improving transparency in public fund management and streamlining exchequer approvals.

The CoB’s proposal included a budget of Sh50 million for the Controller of Budget Management Information System (COBMIS); however, the office received no funding for this initiative. Speaking before the Senate Finance Committee, Nyakang’o noted that her office requested Sh1.6 billion for the 2025/26 financial year, but this amount was drastically reduced to Sh777.5 million.

Currently, only Sh613.8 million has been allocated, resulting in a shortfall of Sh579.3 million that affects key operations. Nyakang’o stated, “We budgeted Sh50 million for the automation system, but we received zero funding, so this again is not going to be possible. We can’t talk about automation with zero budget.”

Furthermore, despite achieving 20 percent of automation for the withdrawal process by December 2024, Nyakang’o emphasized the necessity for collaboration with institutions like the National Treasury and the Central Bank of Kenya (CBK) to fully implement the automation system.

At present, while a partial automation of national government requisitions exists, it remains underutilized. Nyakang’o pointed out, “Those who are sending us reports must also automate. The National Treasury must automate, and in the same process, the CBK must also automate. The implication here is that we hope by 2025/2026, when all parties come together, we will complete the automation system.”

In addition to automation, other critical functions of the CoB remain underfunded. This includes a shortfall of Sh182.8 million for personnel emoluments regarding a new staff grading structure, alongside Sh61.1 million needed for public awareness campaigns on budget processes. Moreover, there is a projected requirement of Sh102 million for legislative reforms, including amendments to the CoB Act of 2016, which has not been allocated.

Nyakang’o lamented, “Since I joined this office, I have never traveled outside the country… and this is my sixth year,” highlighting the severe impact of funding shortages on the CoB’s ability to fulfill its constitutional mandate to oversee the prudent use of public resources across various levels of government.

The Senate Finance Committee has expressed grave concerns regarding the significant budget cuts, cautioning that inadequate funding could undermine financial accountability and the efficacy of public expenditure oversight. Senator Bonnie Khalwale underscored the necessity to adequately compensate skilled professionals in the office, stating, “We can’t have our young professionals, properly educated and qualified, being paid peanuts when they are supposed to work in this critical office. Whatever expenses you have with them, share with us so that we can support whatever you have requested.”

In conclusion, the Controller of Budget, Margaret Nyakang’o, has voiced serious concerns about the detrimental effects of funding shortfalls on essential government oversight functions. The lack of financial resources compromises initiatives such as the automation of financial processes and critical projects aimed at clarifying budget management. The Senate Finance Committee’s acknowledgment of these issues underscores the urgent need for improved funding to ensure transparency and accountability in public expenditure. The future of the CoB’s operations and its constitutional mandate hinges on securing the necessary resources to fulfill its role effectively.

Original Source: www.capitalfm.co.ke