Donor Related Investigations on ETrs and Conflict Resolution Arising
Therefrom
Posted on 5th-August-2013
Your attention is drawn to the High Court judgement of 7th March 2011 in which
the High court of Kenya ruled that it is within the mandate of the ETrs
Co-ordination Board, as a Regulator, to review or investigate financial accounts
of ETrs and/or demand for documents relating thereto in the course of such
investigation. The ETrs Board is also mandated to prescribe rules of procedures
in carrying out such investigations.
The Board has received a series of complaints from both Donors on
non-cooperation from some ETrs when audits are being carried out where suspicion
of fraud and/or misappropriation is alleged including filing of false annual
returns and ETrs who complain of harassment and intimidation from Funding
agencies when such matters arise.
The Board has put in place procedures for audit of financial statements for
statutory reporting purposes. In view of the fact that ETrs receive donations
which they hold in trust for their beneficiaries it is in the public interest
for the ETrs Coordination Board to look into and be involved in the conduct of
investigations into financial and/or operational affairs of all ETrs.
Please be advised that in pursuit of its mandate, the Board will where necessary
carry out the appropriate investigations in line with the Act. In addition, it
is now a requirement that all ETrs MUST notify the Board of any communication or
notice of investigations or impending investigations from their Donors. You will
also be required to notify the investigating body (Donor) of the requirement for
them to contact the ETrs Coordination Board directly with the details of such
investigations.
TAKE NOTICE that this information will be required by the Board whether the
investigation is from other Regulatory Authorities or from a local or
international Donor. The Board shall exercise its discretion to either lead or
participate in such investigations depending on circumstances. The notice of
such investigations must be sent to the Executive Directors office of the ETrs
co-ordination Board.
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