• Company hurriedly registered six months after being awarded contract.
• Youth PS says company was recommended by Lands ministry.
Image: FILE
Fresh revelations have emerged on how taxpayers lost millions in fictitious contracts at the graft-ridden National Youth Service.
On Thursday, MPs heard that the service, which has been marred by open financial misappropriation, paid Sh54 million to a company that had not been registered by the time of awarding the contract.
Auditor General Edward Ouko’s 2016-17 audit report revelations showed the company was hurriedly registered half a year after the money was syphoned in a suspected cover up for the irregular transaction.
Annuar Investments contracted to supply food and rations, signed a contract on August 20, 2014, but according to records tabled before the Public Accounts committee, the firm was registered on June 16, 2015, six months after it won the lucrative tender.
Youth PS Francis Owino, appearing before the committee chaired by Ugunja MP Opiyo Wandayi, defended the ministry from any wrongdoing, claiming the department did not have contractors at that time and relied fully on suppliers recommended by the Lands ministry.
“The State Department did not have contractors at the time. This necessitated the adoption of contractors from Lands pursuant to the Public Procurement and Disposal assets 2005,” Owino told the committee.
MPs Wandayi, Otiende Amolo (Rarieda), Peter Masara (Suna West) and Kimani Kuria (Molo) faulted the ministry of sleeping on the job, blindly approving a company that is non-existent thereby occasioning a huge loss of public funds.
“Even if you did not have contractors, you want to tell us that you entered into a contract and in the process of doing so you did not care to check the legal status of the company?” Wandayi asked.
Masara said, “As much as someone gives you contractors you must get the details of the contractor. Your department must at least know who they are dealing with."
Boxed to a corner, Owino admitted the department overlooked the matter and informed the committee that the ministry has already launched investigations into the company.
“It was assumed that due diligence had been done by the contracted department. The officer in charge of supplies branch forwards supply circulars to government ministries and departments and all public institutions,” Owino said.
Wandayi directed the ministry to furnish the committee with all contract documents pertaining to the contract before close of business on Friday.
(Edited by R.Wamochie)