State to surcharge officials linked to loss of public cash

The government has directed the immediate and continuous implementation of surcharges against officials whose actions or omissions result in the loss of public resources.

The move is part of President William Ruto administration’s efforts to curb the misuse of funds and restore public confidence in the fight against corruption.

In the past, the government has been forced to pay billions of shillings to settle litigation arising from negligence by public officers entrusted with managing public resources.

Most of these payouts have gone to petitioners contesting the irregular awarding of tenders and the blatant failure of accounting officers to comply with procurement laws.

The directive, issued by Head of Public Service Felix Koskei, was communicated to all PSs in a circular dated February 11. It mandates strict adherence to financial accountability measures.

Following a Cabinet meeting held on September 17, 2024, several policy measures were approved to enhance financial discipline within public service institutions.

These include immediate surcharging of public officials whose actions or inactions lead to financial loss and enforcement of disciplinary measures against officers implicated in internal and external audit reports.

The Cabinet also approved referral of corruption cases to statutory agencies mandated to investigate and take further action.

In the circular, Koskei instructed all accounting officers to submit a detailed report outlining actions taken in response to the directive by April 14.

Additionally, any implicated official will be subjected to due process and fair administrative action before any surcharge is imposed.

“Before any surcharges are effected, the concerned officers must be subject ed to due process and fair administrative action procedures in accordance with the law. All accounting officers are required to provide a report outlining the action(s) taken pursuant to this directive by April 14,” the circular reads.

Surcharging refers to imposing an additional financial penalty on an individual responsible for financial loss.

For instance, surcharging on income tax means an additional tax levied against a specified officer, with the limit set by the government.

Koskei said the latest move aligns with the government’s Public Service Zero Fault Audit Status Campaign, which aims to instil a culture of accountability and financial integrity.

The directive has been copied to PSs, chairpersons and chief executive officers of independent constitutional commissions, offices, state corporations, and agencies.

Koskei said the directive is in line with constitutional provisions and audit findings that have uncovered massive losses of public funds due to acts of commission or omission.