• Gathungu’s report pointed that NLC did not care to conduct a search and ascertain the ownership of the parcels raising fear of a possibility of the government buying its own land or payments made to undeserving individuals.
• The audit which is now the basis of the ongoing probe by the Public Accounts Committee cited NLC for unreliable valuation reports, failure to conduct adequate due diligence before affecting compensation, inadequate record-keeping and committing public funds to land that was not put into immediate use.
MPs are probing a case where the National Land Commission relied on undated and unsigned valuation report to make payments amounting to Sh7.7 billion.
The commission made the payments between 2014 and 2017.
A special audit by the Auditor General Nancy Gathungu revealed a rot at the commission that has seen taxpayers’ money risked in unclear transactions.
The audit which is now the basis of the ongoing probe by the Public Accounts Committee indicted NLC for unreliable valuation reports, failure to conduct adequate due diligence before affecting compensation, inadequate record-keeping and committing public funds to land that was not put into immediate use.
“The special audit established that the valuation compensation schedule used as a basis of effecting compensation payments and totalling Sh7,741,072,055 were either not dated, signed or availed,” Gathungu said.
Without valid valuation documents, Gathungu said her team was unable to validate instances of overcompensation, double payment or false claims.
“The special audit could not give assurance that the parcel numbers, precise sizes, and independent confirmation of the accurate value of land was established before acquisition and therefore the aforementioned expenditures were not incurred in a manner that was lawful and effective to guarantee value for money.”
Gathungu’s report said NLC did not care to conduct a search and ascertain the ownership of the parcels raising fear of a possibility of the government buying its own land or payments made to undeserving individuals.
“There was no evidence to indicate that NLC had conducted an official search at the Lands Registry to confirm that the parcels of land had been lawfully acquired and were not public land.”
“Under the circumstance, the special audit could not assure that NLC had confirmed that the aforementioned parcels were lawfully acquired and were not public land as defined by law.”
For instance, the auditor pointed out questionable payment of Sh221 million for four properties situated along the Embakasi Station Railway Reserve to Keboiwo Investment Limited which was not listed as owners of the said property.
The audit covering 2014-15 – 2016-17 was conducted after a request by the Public Accounts Committee.
The audit was to among others establish whether NLC ascertained parcel numbers, precise acreage and independently confirmed the accurate value through a valuation of the respective parcels and or improvements thereon before approval for compensation.
The audit was also to determine ownership of the land and instances of double payment.
During the period, NLC received a total of Sh23 billion out of which the auditors reviewed Sh14 billion involving eight state agencies.
From the Sh23 billion in its account, NLC earned Sh226 million in form of interest on monthly cash balances monies which the commission irregularly used to fund its operations without approval by the National Treasury.
NLC according to records, utilised the interest earned to supplement the operational budget and also cover administrative expenditures incurred concerning the acquisition of land on behalf of other government entities.
Some of the state corporation the commission procured land on their behalf include Kenya Urban Roads Authority, Kenya National Highway Authority, State Department for Housing and Urban Development and National water Conservation and Pipeline Corporation.
Others are Lamu Port South Sudan Ethiopia Transport, Tanathi Water Services Board and Kenya Railway Corporation.
On Wednesday, the oversight team chaired by Ugunja MP Opiyo Wandayi will meet both NLC and KRC.
KRC had transmitted Sh4.5 billion to NLC for the acquisition of Standard Gauge Railway land.
KRC will also be responding to findings that it committed public funds in acquiring a parcel of land at Emali for construction of a station at Sultan Hamud, land which was never used as the SGR route was later redesigned.
Further, the findings revealed that the commission does not maintain a database/register of all public land acquired which was a breach of the Land Act 2012.
“This, therefore, means that NLC had not delivered on part of its legislative mandate,” the report said.
Edited by Kiilu Damaris