Probe loss of public funds through Ifmis

Questions about integrity of the Integrated Financial Management System (Ifmis) have dominated public debate in the past few weeks. First it was a report about false budgetary expenditures by Kiambu County that threw Governor Ferdinand Waitutu to the national limelight for the wrong reason. Quickly, it snowballed into a major scandal when it transpired that at least 11 counties had been conscripted into the fraud.

However, we are concerned that there is no sufficient anger and urgency to deal with the swindle. Which is why we are revisiting the matter. These is an air of eerie silence yet we are confronted with a possible racket of monstrous proportion. Already, it is estimated that some Sh10 billion may have been lost through the scam and the figure could be higher if the full details come to light.

Here is a case of White-collar crime perpetrated by technology experts. But it is not that simple. Big names must be involved; such grand heist cannot be perfected by a few information and technology experts without collusion and connivance by the high and mighty. Which may explain the silence because nobody wants to confront the reality and upset the applecart.

When Ifmis was introduced, it was touted as the panacea for the pervading financial muddle in the public sector. As a technology system, it has inbuilt systems that counter-check and block fraudulent transactions. Security is guaranteed through layered passwords issued based on responsibility and level of seniority. Not anyone is accessible to the system. Neither can anyone perform any transaction beyond the assigned authority. Indeed, those are basic components of all financial management systems.

This is the reason why explanations given by the National Treasury that the errors may have accrued through missteps by county financial managers is hogwash. A major financial management system like this one cannot be susceptible to such errors. Those are properly planned and well-calculated schemes to benefit a few individuals.

The National Treasury must come out clear on this. This is not a simple matter. Drastic actions must be taken. Heads must roll. We take cognisance of the step taken to unravel the puzzle by constituting a multisectoral agency involving the National Treasury, Auditor-General, Controller of Budget and Council of Governors to investigate the scam. But that is not enough. We demand far-reaching actions; first to rein in the perpetrators of the con and second, find a lasting solution to the loopholes that make the system so vulnerable to theft.

The Directorate of Criminal Investigations should seize itself of the matter, thoroughly investigate the fraudulent transactions and bring the criminals to book. Ultimately, review the viability of Ifmis with a view to making drastic changes.