Kibwana's Sh30m fruit plant a liability - Auditor

The Sh30 million Kalamba fruit processing plant in Makueni county that was touted as an economic cure has become a liability.

A 2018-19 report by Auditor General Nancy Gathungu shows the project has become a loss-making venture draining millions of shillings.

The auditor also flagged 27 projects, some stalled, that have put taxpayers’ money at risk.

She also cited skewed staff recruitment in which 95 per cent of vacant entry-level positions were filled by members of the dominant community.

The report is critical of Governor Kivutha Kibwana’s administration that got a clean bill of health the year before.

According to the report, the county government pumped Sh30 million into the project but the factory realised only Sh28.56 million representing a five per cent loss.

“The factory has significantly high overhead and is not making any profits. Unless the management strategises on the operations of the factory, its continued funding may not be effective use of public resources,” the report read.

Gathungu concluded the sustainability and commercial viability of the factory may not be guaranteed. That was in 2018-19.

The factory is one of governor Kibwana’s flagship projects that has showcased the county as one of the best-performing.

Gathungu also revealed that Makueni residents could not be getting value for money in the implementation of 27 projects worth Sh57.50 million.

Though 22 of the projects have been completed, the audit said they have not been commissioned or are idle

“Further, five boreholes with a combined cost of Sh14.77 million had stalled,” the report read.

Further, the county apparently lost money on the Kathekani borehole project, which was done at a contract sum of Sh3.72 million.

The contract to drill and equip the borehole was awarded in 2016-17.

However, field inspection during September 2019 revealed there was no water on site as the contractor had not equipped the borehole.

The auditor also questioned why the county spent Sh43.79 million to purchase six parcels of land that were not developed.

In addition, the county spent Sh5.10 million to buy four parcels but never acquired ownership documents, putting them at risk of being grabbed.

Further, the administration was criticised for skewed hiring of staff and spending as much as 41.4 per cent of its annual budget to pay salaries and wages.

During the year, the report shows, the county hired 169 people. Of that number, 92 per cent were from the one ethnic community.

That percentage violates the County Government Act. It requires county public service boards to ensure at least 30 per cent of the vacant entry-level positions are filled by candidates not from the dominant community.

(Edited by V. Graham)