House team recommends international firm to audit Auditor General's office

The National Assembly Public Accounts Committee (PAC) has recommended that an international firm be hired to audit the Office of the Auditor General, seeking to avoid potential conflicts of interest with local audit firms.

The PAC has already written to the Clerk of the National Assembly, Samuel Njoroge, to explore advertising the tender internationally.

The Office of the Auditor General is responsible for auditing the expenditures of various government ministries and agencies.

According to the PAC, expanding the search for auditors beyond Kenya's borders would introduce more firms into the bidding process, ensuring transparency and minimizing concerns about conflicts of interest.

Butere MP Tindi Mwale, who serves as the vice chairperson of the committee, defended this idea.

"This way, we will have more audit firms, and it would not feel like there is a conflict of interest when they are asked to bid to audit the Office of the Auditor General," he said.

Limited local participation

The move comes in response to the reluctance of local audit firms to submit bids for this particular task.

PAC has called for a review of the law that mandates the National Assembly's accounting officer to advertise tenders locally, recommending the tender process be expanded to international firms.

Article 226(4) of the Constitution grants the National Assembly the authority to identify qualified auditors to scrutinize the accounts of the National Audit Office.

Despite this, only two firms submitted bids for the most recent tender: PKF Kenya LLP and Nelson and Francis LLP.

Ultimately, PKF Kenya LLP secured the contract to provide external audit services for the Auditor General's Office for the Financial Years 2022-2023, 2023/2024, and 2024-2025 for Sh25.5 million.

"The apparent reason for this state of affairs is that most independent audit firms shy away from professional distance, having already been engaged by the Office of the Auditor General for other outsourced tasks," Mwale explained during a motion to approve PKF Kenya LLP's appointment.

He assured the public that the committee remains committed to providing oversight of the Auditor General's Office, ensuring its operational efficiency and guaranteeing value for every shilling allocated by the National Assembly.

Funyula MP Ojiambo Oundo, also a member of the PAC, raised concerns about the limited number of firms that participated in the bidding process.

Out of the two firms that submitted bids, Nelson and Francis LLP was disqualified during the technical evaluation stage.

This left only PKF Kenya LLP in the running, which Oundo found troubling.

"I am at a loss for words," Oundo remarked, expressing his frustration. "I cannot fathom how a firm of Nelson and Francis LLP's stature could present a forged tax compliance certificate. Was it a mere coincidence? Or was there complicity to ensure a straightforward path for PKF? How can they be so reckless when these audit firms are listed on the stock exchange in this country? Is our financial sector truly safe?" he posed.

The legislator also went on to emphasise the need for the tendering and procurement process to be expanded beyond Kenya's borders to encourage more competition and transparency in future audits of the Auditor General's Office.