Audit Reveals Sh1.4 Billion Mismanaged at Women Enterprise Fund
A recent audit by Auditor General Nancy Gathungu has revealed shocking financial irregularities at the Women Enterprise Fund, with over Sh1.4 billion reportedly mismanaged. The findings, covering the financial year ending June 30, 2024, point to systemic issues in financial oversight and governance.
The report exposes unauthorised mobile transactions, untraceable funds, and discrepancies in official records. A staggering Sh212 million passed through unauthorised mobile pay bills, despite government directives requiring the use of a centralised payment system. These funds are now unaccounted for.
“In the circumstances, the mobile money balances of Sh212 million could not be accounted for,” noted Auditor General Gathungu.
In another red flag, the fund paid out Sh34 million in gratuities without proper documentation. “The accuracy and completeness of the gratuity payments could not be confirmed,” the report stated, raising questions about the legitimacy of the transactions.
The audit further found unexplained variances totalling Sh1.2 billion in the general ledger and financial statements. For example, the fund reported Sh68 million in computer maintenance expenses, while the ledger only recorded Sh9 million. Similar discrepancies were observed in board expenses, travel costs, and loan disbursements to women’s groups.
The audit has also raised alarm over the fund’s deteriorating financial health. The Women Enterprise Fund posted a loss of Sh330 million in the period under review, a sharp drop from a Sh220 million profit the previous year. This worrying trend could push the fund into insolvency if not urgently addressed.
The revelations have sparked concerns among stakeholders about the fund’s ability to continue empowering women economically. Calls for swift investigations, recovery of misappropriated funds, and restructuring of the fund’s management have intensified.
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Audit Reveals Sh1.4 Billion Mismanaged at Women Enterprise Fund