In all the expenditures and revenues, the National Treasury followed expert advice from accountants and no money had been lost, only that the documentation was the problem.
While answering questions from the Parliamentary Public Accounts Committee (PAC) over an unaccounted Sh67 billion, as recorded in the Auditor General’s Report, Dr. Kamau Thugge said, “we had meetings and have even written to the Controller of Budget to furnish evidence and explanation on the matters PAC have raised”.

Dr. Thugge who was responding to the PAC questions during a three-day retreat at Serena Beach Hotel in Mombasa, added that National Treasury is still awaiting for the reports from accountants from line ministries and we shall have another engagement with PAC so that we can deliberate further on the report from a more knowledgeable point of view.
The Principal Secretary noted, however, that accountants from the various ministries had presented their recommendations to the office of the Auditor General on how to curb the irregularities, but were ignored.
He said the controversies cited in the Auditor General’s report emanated from four main areas that include unexplained expenditures, unbalanced figures, funds carried forward from 2012/2013 financial year and the sovereign bond.
Dr. Thugge told the committee that the sovereign bond-where the country borrows money from external sources-was a new phenomenon and the country was just learning how to manage such funds. This could have led to the discrepancies.
He denied assertions by Members of Parliament that the sovereign bond borrowing was made to finance the Sh327 billion Standard Gauge Railway (SGR) project.
“There was no relationship between the sovereign bond borrowing and the SGR project. The railway project had its own separate funding and was not even factored in our budget estimates”, he said.
The $2 billion sovereign bond loan will mature between 2018 and 2024, he said, with $500 billion to be paid within the first five years at interest rates of between 5 percent and 10 percent.
Chairman of PAC, Engineer Nicholas Gumbo, Mbalambala MP Abdikadir Omar and Kibwezi East MP Jessica Mbalu asked most of the questions during the audit retreat.