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Members of Parliament (MPs) have initiated an investigation into the circumstances under which the Ministry of Energy received additional funds from the National Treasury for a donor-funded project.

Auditor General Nancy Gathungu flagged the extra budget after it emerged that while the State Department for Energy budgeted for Sh90 million, it received Sh378 million, an overfunding of Sh288 million.

Gathungu in her report for the year ending June 30, 2022, cast doubt on management’s explanation that the overfunding was as a result of the project erroneously receiving funds meant for another entity.

The Public Accounts Committee (PAC) while examining the accounts for the State department  termed the transaction suspect.

The committee in a session chaired by Butere MP Tindi Mwale, who is the vice chairperson put to task Principal Secretary Alex Wachira on how the error occurred and whether it is a common happening in government transactions.

“You said you erroneously got Sh288 million. How did the generous error arise? Which other entity is involved?” asked Rarieda MP Otiende Amolo.

Wachira was at pains to explain the “genuine error” with members terming his response as inadequate and unsatisfactory.

Members said the written response that the PS tabled made no reference to the extra amounts nor the project involved.

“You could have attached evidence to explain this further. The question we are asking is; did it go back to the sender or did it disappear from the Treasury?” Soy MP David Kiplagat asked.

MPs took issue with the department for glossing over the matter and pushed to be furnished with the agreements signed between the Treasury and the World Bank on the same.

Kibwezi West MP Mwengi Mutuse said, “It would be helpful to provide the financial agreement to determine the terms.”

The committee is also probing why the provided funds (the Sh90 million) were also not spent fully as envisaged.

Auditors queried the underabsorption after it emerged that out of the Sh90 million, only 50 per cent was absorbed.

The ministry explained that the under-absorption was as a result of complexities in the procurement process.

 However, Wachira said the project in question is now complete and that the funds were returned to the National Treasury.

He said the procurement procedures were undertaken using the World Bank guidelines.

“The guidelines required that we get clearance at every stage. An approval at one stage would then define what to be done next.”

But Otiende said the response was not congruent with the written explanation.

“If it is about the delay, not just the complexity of procurement. This would invite a further explanation. The written explanation doesn’t have that detail,” Amolo said.