Surcharge and Restitution
This function entails recovery of lost funds to the State Corporations through a surcharge process. In order to safeguard public resources, the Inspector-General (Corporations) is empowered under the State Corporations Act, Cap 446 section 19 to surcharge those responsible for loss and restitute the lost funds to the state corporations. Cases for surcharge emanate from recommendations arising from management audit reports, Public Investment Committee (PIC) reports and other sources. If a public officer misappropriates or occasions the loss of public resources, the IGC recovers the full amount lost. if the loss was as a result of negligence on the part of the officer, 10% of the total amount lost is recovered.
The surcharge and recovery process is prescribed in the following;
- Cases of surcharge are identified from the management reports or other reports compiled by other relevant government institutions
- The relevant officer submits a memo to surcharge committee.
- The surcharge committee (the chairman – Senior Deputy Inspector General) deliberates the case, and if there is enough objective evidence, a show cause letter is addressed to the officer
- After the accused officer receives the letter and agrees to pay the ISC shall follow up on payments of the lost money
- The surchagee can defend himself/herself before the Surcharge Committee
- If there is no response from the surchargee officer after 7-21 days (depending on the location) the Surcharge committee reconvenes and deliberates the case, and issues a surcharge certificate (approved by the Inspector General)
- The surcharge, if dissatisfied with the Surcharge committee rulling can appeal to the State Corporations Appeal tribunal
- The surchargee if dissatisfied with the State Corporations Appeal tribunal ruling can appeal to the high court. The ruling of the High Court is final.
The ISC maintains a database of all surcharge cases. To date the Office has handled ……(no) of cases as depicted in the following link: Status of Surcharge Cases