The Sh1B meant for the Youth Enterprises Development Fund has been used by the government to pay staff salaries, perks, and travels. The fund was supposed to provide loans to young people intending to start their own businesses. Auditor General Nancy Gathungu has also cast a doubt on the sustainability of the fund, following a dismal performance in the just concluded financial year.
”This implies that the fund management has over time utilised Sh1,093, 839,342 of the revolving fund to recurrent operations expenditure thereby affecting the sustainability of the fund. Further, no reallocation approvals were availed for audit verification to support utilization of conditional grants on recurrent expenditure. Under the current circumstances, sustainability of the revolving is at risk and therefore and doubtful,” the Audotor General’s report submitted to parliament reads in part.
“The trend of the fund continuing to incur deficits as has occurred over the last four years may erode the capital invested in the revolving fund and impair the ability of the fund to sustain its core duty and services as intended in its formations.
“This material uncertainty which casts significant doubt on the continued ability of the fund to discharge its mandate in the foreseeable future has not been disclosed in the financial statements,” reads the audit report.
