Judiciary on spot as audit reveals Sh8.43 billion missing, stolen
Gathungu said Sh352.9 million linked to 72 court stations was still held by former district treasuries and had not been transferred back to the Judiciary, despite its financial autonomy under the 2010 Constitution.
The Judiciary is on the spot after Auditor General Nancy Gathungu revealed that Sh8.43 billion in third-party deposits remains unaccounted for, with missing funds, theft, and unpaid bills casting doubt on the institution’s financial accountability.
The report, covering the financial year ending June 2024, highlights significant discrepancies in the Judiciary’s financial management.
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Gathungu said Sh352.9 million linked to 72 court stations was still held by former district treasuries and had not been transferred back to the Judiciary, despite its financial autonomy under the 2010 Constitution.
“The balance includes general deposits for various court stations amounting to Sh7,322,048,732, out of which an amount of Sh352,938,472 relates to deposits for seventy-two (72) court stations held by the former District Treasuries that have not been paid to the Judiciary,” Gathungu said.
She further noted that despite a request by Judiciary management for confirmation of the liability through a letter to the National Treasury on December 29, 2021, no acknowledgment had been received to date.
Additionally, the report revealed that Sh150.75 million was stolen by Judiciary staff in Embu, Malindi, Molo and Nakuru courts in the 2017/2018 financial year, with the theft dating back to previous years. The case was referred to the Directorate of Criminal Investigations (DCI) and the Assets Recovery Agency (ARA), but the funds had not been recovered by June 2023.
“As previously reported in the Judiciary financial statements for the year 2022/2023, and as disclosed in Note 5, included in the third-party deposits balance are deposits amounting to Sh150,748,101 lost through theft by staff members in Embu, Malindi, Molo, Nakuru courts and Judiciary headquarters in 2017/2018 and prior financial years,” Gathungu said.
She added, “In the circumstances, the accuracy and completeness of the third-party deposits of Sh8,432,972,935 and the recoverability of the lost deposits could not be confirmed.”
The Auditor General further faulted the Judiciary’s management for failing to submit copies of monthly and quarterly bank statements for audit and for neglecting to conduct internal audits on the deposits, making it difficult to verify their accuracy and completeness.
The Judiciary’s financial woes extend beyond deposit mismanagement, as Gathungu also flagged the institution for carrying forward unpaid bills into the next financial year, which affects budgetary provisions.
“Other important disclosures reflect pending accounts payables of Sh872,100,944, which was not paid during the year but instead carried forward to the 2024/2025 financial year,” she said.
“The balance includes pending payables of Sh82,455,478 relating to 2022/2023 and prior years and an amount of Sh791,432,670 or 91 per cent incurred in the 2023/2024 financial year.”
The third-party deposits flagged in the report consist of fines, bail, security, compensation, and settlement or auction proceeds, which are collected by courts but do not belong to the Judiciary until they are refunded, released, or forfeited.
Gathungu has now called for urgent need for financial accountability reforms within the institution.
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