The National Assembly’s Public Accounts Committee (PAC) on Tuesday, September 9, put the State Department for Broadcasting and Telecommunications under scrutiny over alleged mismanagement of Ksh500 million meant for advertising, printing, and distributing the MyGov pullout in local dailies.
The committee, chaired by Butere MP Tindi Mwale, questioned PS Stephen Isaboke about the credibility of the circulation figures, noting that despite repeated directives, the Government Advertising Agency (GAA) had failed to provide clear records of how many copies were printed, distributed, or returned.
The controversy arises from audit queries in the Auditor-General’s report for the financial year ending June 2023, which flagged payments made through GAA.
The report shows that GAA spent Ksh495,389,974 on printing, advertising, and information supply services paid to four newspapers for publishing the MyGov pullout.
However, a review of contract documents revealed that revenue from advertisements in MyGov did not fully offset the amounts paid to the media houses.
Gatundu South MP Gabriel Kagombe criticized the payments made to the People Daily newspaper, alleging that the outlet had long ceased printing yet continued receiving payments.
“The State Department is telling us they paid for printing and distribution, yet some newspapers mentioned here, like People Daily Newspaper, had even stopped printing. They are no longer printing paper,” Kagombe questioned.
PS Isaboke explained that the accounts under review covered the financial year ending June 2023, when the People Daily was still in operation and had a valid contract with the GAA, insisting that the transactions were legitimate.
The Broadcasting PS also acknowledged challenges in revenue projections, such as a forecast of Sh1 billion in advertising revenue, which yielded only Ksh441 million.
He attributed the shortfall to ministries, departments, and agencies failing to pay for services on time.
Rarieda MP Otiende Amollo asked PS Isaboke to table documentary evidence comparing government advertising costs before and after the creation of the GAA.
“You stated that prior to the GAA, cumulative government spending on advertising was higher than it is now. If that is the case, then provide an analysis of the three years before GAA was established against the three years under its management.
“Only with such evidence can we determine whether there is value for money,” Amollo stated.
The ODM MP further questioned whether the government was deliberately sidelining certain newspapers when placing advertisements.
PS Stephen Isaboke dismissed the claims, saying the government has no policy of discriminating against any media house.
“That would be unconstitutional. Any outlet that meets procurement requirements is eligible to do business with the government,” Isaboke stated.
Turkana Central MP Emathe Namuar, on his part, raised concern over what he termed as blatant overspending by GAA, accusing it of operating outside its allocated budget.
“Why doesn’t the agency spend within the budget given by the Treasury? And whenever you go beyond your allocation, is there any formal communication to show that the funds are exhausted? Otherwise, this appears to be another window of looting,” he said.
PS Isaboke explained that the law currently requires certain notices to be published in print.
“We would welcome a review of the law to allow hybrid digital and print publication. Most young people consume news online, but as it stands, we must comply with the law mandating print,” he explained.
The committee directed PS Isaboke to table within two weeks a detailed report with circulation data, expenditure comparisons, and verification mechanisms.
