The Auditor-General has queried the accuracy of the expenditure of millions of shillings in the Africa Climate Summit hosted in Nairobi two years ago, after the event’s management used donor funds to pay taxes and did not issue a refund after underutilising its budget.
- •The audit indicates that the event’s management used KSh 37 million to pay VAT and other levies for various goods and services it procured for the summit.
- •The report also questions the failure of the summit’s managers to reimburse donors KSh 109 million balance after it underutilised the US$2.5 million it received to plan the summit.
- •The inaugural Africa Climate Summit, championed by President William Ruto, aimed to address the increasing exposure to climate change and its associated costs, both globally and particularly in Africa.
“The statements of receipts and payments reflects the purchase of goods and services amount of KSh 213,482,891,” notes the audit, “However, the amount included value added tax on transport, accommodation, service charge, training and catering levy for the accommodation and meals totalling KSh 37million. The taxes were paid using donor’s funds, contrary to financing agreement which states that ‘where any tax or duty is not exempted, the recipient is responsible to pay such tax.’
According to Auditor-General Nancy Gathungu, the statement of financial assets and liabilities reflects bank balances of KSh 109,379,931. However, the balance had not been reimbursed to the donor, contrary to the grant agreement which says that, “any unutilised amount shall be reimbursed to the bank.”
The Summit received a US $2.5 million donor grant, but records show it overdrew the special account for the project at the Central Bank by US$37, 500 (KSh 4.9 million). According to the audit, the event’s management said that the variance was disbursed to the National Treasury.
The Summit served as a platform to inform, frame, and influence commitments, pledges, and outcomes, ultimately leading to the development of the Nairobi Declaration.