Auditor General Edward Ouko has lifted the lid on serious rot at the state-funded Pyrethrum Processing Company of Kenya, which has lost millions of shillings in suspicious transactions.
Ouko in his 2017-18 report reveals how PPCK paid out millions for work not done, undervalued its assets and failed to declare rent received.
For instance, the audit found that the firm hired casuals and paid them Sh20 million for processing flowers yet there was no such activity during that year.
The company was also found guilty of non-remittance of statutory deductions, failing to remit millions of shillings of workers’ union dues, pension scheme and bank and loan repayments despite the same being catered for in the budget.
In another case, the audit findings indicate PPCK under-declared its rent income from almost 200 rentable properties leased out to third parties including two state entities – Commodities Fund and Pest Control Board.
According to the PPCK’s records, they only collected Sh 15 million from rent while a review of the rental properties by the audit team indicates the company could be collecting up to Sh 29.8 million.
“The rent collectable and collected is therefore not only under-declared but part of it is also not accounted for,” Ouko points out in his report.
The audit report was tabled in the National Assembly by Majority Leader Aden Duale on Thursday.
PPCK undertook a re-evaluation of its assets at a cost of Sh 14.5 million and ended up leaving out a number of properties including pieces of land and motor vehicles without any justification.
From a pool of 58 motor vehicles and heavy machinery the company owns, only six vehicles were revalued.
Also eight vehicles worth Sh 11.5 million were impounded and auctioned due to outstanding payments to a service provider who had carried out some work at PPCK during 2013-14 financial year.
“Out of the existing fifty vehicles, logbooks for ten vehicles were not provided for audit. Consequently, their ownership remains doubtful.”
