Jubilee Party is broke, declares auditor
The fight for millions of shillings within the Jubilee Party has taken a new twist after it emerged that the ruling outfit is in fact broke and relying on well-wishers and donors for survival.
In the latest audit report, covering the financial year ending June 30, 2018, the Auditor General declared the party “technically insolvent” with its liabilities far exceeding its assets.
The report exposes massive mismanagement of its finances that has left it bankrupt, leaving it to operate through donations from well-wishers.
“The statement of financial position as at June 30, 2018, reflects current liabilities balance of Sh133,558,229 which exceeds current assets of Sh67,278,244 by Sh66,279,985 implying that the party was operating with a negative working capital, thus technically bankrupt,” the Auditor General reports.
“In the circumstances, the continued existence of the party is dependent on continued financial support from creditors, bankers and well-wishers,” the report concludes.
The report comes in the wake of renewed wrangles in Jubilee pitting a faction allied to Deputy President William Ruto against those who supporting President Uhuru Kenyatta, this time over the use of party funds.
On Monday, the party’s deputy secretary general Caleb Kositany wrote to secretary Raphael Tuju, demanding accountability in the use of money, including monthly contributions from party governors, senators, MPs and MCAs.
“As a contributor and a person who pays taxes I have a right to know exactly how the money is being utilised,” said Kositany.
In response, Tuju termed Kositany’s letter “desperate political posturing”.
“I have received your letter in which you demand to be furnished with audited accounts of the Jubilee Party, which you have signed off as the Deputy SG,” Tuju responded.
Kositany maintained that Jubilee’s elected members pay Sh10,000 every month and is demanding that the party show how these funds are being used.
“Tuju and the team should publish for us their records in the local dailies. As deputy SG, I know I should be getting some allowance but someone might be earning it on my behalf.
We want to know how we’re paying rent of Sh5 million per month and tea and snacks worth Sh7 million monthly,” Kositany said.
He maintained that they want the identity of mysterious individuals whom the party pays Sh90 million as annual rent for the Jubilee headquarters revealed.
He also demanded that the party gives names of all its employees and their salaries, so as to explain the Sh144.9 million employee expenses flagged by the Auditor General.
He claimed that he and many of his colleagues perceived to be allied to Ruto have been barred from accessing the party headquarters at Pangani, Nairobi.
“Most of us have been barred from accessing the party offices. It is hard for me to access the documents, the SG should explain why he has closed the offices to elected members,” Kositany said.
He demanded that the party provides the pay roll of all its staff members including that of Tuju and all the projects currently on-going.
According to the Auditor General’s report, the party made cash withdrawals amounting to Sh193 million and Sh24.9 million in cash which cannot be accounted for.
On Monday, Kositany wrote to the party demanding for the party financial reports for the last four financial years.
Among the documents the official is demanding for include, approved budget for financial year 2016-17, 2017/18, 2018/19 and 2019/20.
Also, Kositany is asking for all approved procurement records, reports, and all committee minutes for the five financial years.
Tuju has also been asked to provide certified bank accounts of the Jubilee Party accounts for the financial years in question.
“The SG should also give the Finance and Audit Committee minutes and reports for the five years and the Internal Reports for the same period,” Kositany wrote.
In the letter, Kositany wants a schedule of all party county offices paid for by the party for the five years in question including copies of lease agreements.
He added that the reason why he has raised the matter is because he has realized that the party has been dealing with very dishonest people in office who are siphoning money ruthlessly.
But officials allied to Uhuru, who is the party leader, are however demanding that action be taken against Kositany whom they accused of maligning the party.
“Kositany has of late been politicising every matter to do with the party, it is a high time action is taken on him in accordance with the party Constitution,” said Kieni MP Kanini Kega.
Another Ruto critic, Joshua Kutuny (Cherangany), said; “Kositany should not be even talking about Jubilee, the side he supports left long time ago.”