IRREGULAR PROCUREMENT

Auditor flags Sh93.7 Turkana can't account for

Money was meant for water projects yet county is one of the worst-hit by drought

In Summary

•Report says there was irregular procurement and payment to equip two boreholes in Nakamkwei trading centre 

•Another Sh15,166,117 for construction of Nadunga water supply cannot be explained 

Nadunga water project whose Sh15million the county failed to confirm
AUDIT REPORT: Nadunga water project whose Sh15million the county failed to confirm
Image: HESBORN ETYANG

Rift Valley: Turkana fails to confirm Sh93.3 million for three water projects, audit report states

 

The Turkana county government has failed to confirm Sh93.7 million emergency fund for three water projects, an audit report says. 

The county's emergency fund had no budget allocation for 2016-2017. However, it had Sh152,832,520 as actual expenditure and Sh2,006.50 bank charges. 

Auditor General Edward Ouko shows that Turkana had irregular procurement for the year which reflects the acquisition of assets expenditure of Sh93,665,884.94.

Out of this, Sh15,166,117 was in respect to the construction of Nadunga water supply, Sh34,603,525.96 for the construction of Nakalale water supply and Sh43,896,242 to equip two boreholes at Nakamkwei trading centre. 

Consequently, the propriety of the expenditure of the money meant for water projects cannot be confirmed. 

"Governor Josphat Nanok failed to put the interests of residents by providing water to them. It has been hard hit by devastating drought which has caused more starvation to residents." 

"The water, irrigation and agriculture ministries on September 10, 2016, had requested Sh33.6million emergency fund to equip Nakalale water supply with a solar plumbing system, install rising mains, distribution lines, storage facilities and water points due to insufficient funds in their budget," Ouko says. 

The report indicates that the tender committee advertised and awarded the tender for the construction of water supply for Sh34.6 million instead of equipping the existing water supply systems as indicated by the Ministry of Water.

The audit shows the payment was effected through payment of voucher No. 013 on November 11, 2016, but no evidence was provided to confirm that retention money was deducted from the amount paid to the contractor. 

It was also observed that the contract sum was Sh1 million more than the ministry's requested amount.  

He said the items were purchased to equip Nakalale but were in the bill quantity.

"Sh1.632  million was spent to buy 68 solar modules, 190W, 12V polycrystalline and Sh1,000,000 on relocating 68 existing solar panels," Ouko says.

He says there were irregular procurement and payment to equip two boreholes in Nakamkwei trading centre.

"The Ministry of Water, Irrigation and Agriculture requested for an emergency fund of Sh52.6 million to equip two boreholes at Nakamkwei trading centre with a solar plumbing system, install rising mains, distribution lines, storage facilities and water points, due to insufficient funds in its budget," the report says. 

The tender was awarded to a company at a contract price of Sh43,896,242 and payment effected through voucher No 012 and cheque number 038 without deducting retention money.

However, available information indicates that the county executive had awarded the same company a tender to equip and fence Nakamkwei water boreholes through a restricted tender of Sh20,744,483, leading to double payment of the contractor.

"The criteria set for determining qualification and responsiveness of bidders was proof of works of similar magnitude and complexity undertaken in the last five years. Adequate equipment and key personnel for the specified types of work and sound financial standing and adequate access to the bank credit." 

The report adds, "Sh15,166,117 was in respect to the construction of Nadunga water supply. However, no evidence was provided for audit review to confirm that procurement of the works was subjected to a competitive bidding story process." 

Consequently, the propriety of the expenditure Sh15,166,117 for 2016-17 cannot be confirmed. 

The county assembly's Public Investment Committee and Public Accounts Committee chaired by Nicholas Ewoi last week grilled former Finance executive Paul Nabauin and other county officials over the Sh93.7 million. 

He said PIC and PAC are interrogating officials who were involved in the misuse of public funds and will deal with them according to the law.

(Edited by R.Wamochie)