No thanks: LSK president Faith Odhiambo refuses to join Ruto's debt auditing team

Law Society of Kenya (LSK) president Faith Odhiambo has rejected her appointment by President William Ruto as a member of the independent task force to audit Kenya's debt, saying it is unconstitutional.

She said it amounted to a usurpation of powers by the head of state as the mandate rests with the Auditor General's office.

"In view of the provisions of Article 229 of the Constitution and the interpretation of the said provisions by the court, it is our considered view that the establishment of the taskforce is unconstitutional," a statement from LSK Secretary and CEO Florence Muturi said.

Ms Odhiambo, along with former International Monetary Fund (IMF) director Nancy Onyango, Prof Luis G. Franceschi, Philip Kakai, Shammah Kiteme and Vincent Kimosop, were on Friday appointed by President William Ruto as members of the Presidential Taskforce on Forensic Audit of Public Debt.

However, the LSK has "resolved that neither our President nor any of our members shall accept appointments or participate in the said taskforce" formed by the Head of State.

“The LSK, under its statutory mandate, advises the President [Ruto] to refrain from usurping the Constitutional powers of the Auditor-General through Executive Orders and allow the Auditor-General to perform her constitutional duties,” LSK Chief Executive Officer Florence W. Muturi said.

Public Debt Management Office

In addition, LSK said the Public Debt Management Office, which is headed by a director-general in the National Treasury and funded by public money, should provide details of public debt to the Auditor-General for forensic audit.

“It is essential not to squander scarce public resources by appointing a Presidential Taskforce to perform duties of existing public offices,” LSK urged.

According to the LSK, the constitution mandates the Auditor General to audit the public debt within six months of the end of each fiscal year, adding that the accounts of all governments and state organs must be audited by the office.

In defending its hardline stance, the LSK said it was mandated to protect and assist the public and advise the government on all matters "touching, ancillary or incidental to the law and to uphold the Constitution of Kenya and to promote the rule of law and the administration of justice".

President Ruto formed the taskforce to serve for three months - or longer - with effect from July 5, 2024, with its secretariat based at the National Treasury.

Reconcile loan proceeds

The team is mandated to reconcile loan proceeds with the intended use, assess the adequacy of safeguards in the Public Finance Management (PFM) framework for debt management and recommend changes in the control environment to strengthen the governance of the country's public debt management system.

The newly constituted team, Dr Ruto said, will consult with stakeholders in the public finance sector, including industry players, associations and lobby groups, regulators and government agencies, and any other person or entity the taskforce deems necessary.

Given the current debt burden, President Ruto said there was an urgent need for fiscal consolidation and the limited fiscal space, recommending alternative sources of financing the country's development needs in the short and medium term and a debt restructuring plan.

According to Dr Ruto, the country's public debt has grown rapidly in recent years to over Sh10 trillion today, a fivefold increase from Sh2 trillion a decade ago.

In addition, the debt burden relative to the economy has risen from 40 to 70 per cent of gross domestic product (GDP), above the prudential limit of 60 per cent of GDP.

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