UNDP cuts Sh6 million from Tourism Ministry over unapproved spending

The United Nations Development Programme (UNDP) has deducted nearly Sh6 million from funds allocated to the Ministry of Tourism and Wildlife after an audit found that the money was spent without approval and outside the agreed budget.

The deduction comes from a Sh35.8 million project aimed at combating poaching and illegal wildlife trafficking.

UNDP Resident Representative Anthony Ngororano wrote to the ministry’s Permanent Secretary that the ministry failed to refund the unbudgeted expenses, leading to the deduction from the project funds held at the Central Bank of Kenya.

“UNDP concurs with the ministry’s requests for the fund’s utilisation to implement the approved project work plan activities for the 2024 financial year and that the ministry’s next cash advance request be sent, net the refund amount of Sh5,969,000,” the letter states.

The special audit revealed that the funds were spent on activities not included in the project work plan and flagged an additional Sh1 million that was double-booked in financial reports.

The report highlighted that such overspending goes against UNDP financing rules that require payments to be supported by documents proving receipt of goods or services.

Other concerns include Sh1.2 million spent on procurement without competitive bidding.

Within this amount was Sh5,600 spent on lunch for the project team, despite the team already receiving allowances for daily subsistence.

The audit emphasized that spending on non-project-related items hinders achieving the project’s goals.

"The supporting documents indicate that the payments were not related to an activity aimed at enhancing the accuracy and completeness of the annual report and financial statements... As such the expenditure is ineligible under the UNDP-funded project," the report adds.

UNDP reaffirmed its commitment to support the ministry in delivering stronger national capacity to fight poaching and illegal wildlife trafficking, which the project aims to address through new strategies and improved law enforcement.