The Vocational and Technical Training department domiciled at the Education ministry may have lost more than Sh6.2 billion in the last financial year, putting the CS George Magoha-led team in a spot.
A new audit has unearthed instances of inflated student numbers, unsupported disbursements to the colleges, unexplained variances and unsupported expenditures.
Auditor General Nancy Gathungu, in her review of the department’s spending for the year ending June 2021, flagged instances of misuse of public funds, which the management couldn’t explain.
The report reveals that a Chinese lender paid suppliers directly for goods and services in the Kenya-China projects of more than Sh1 billion.
“The management did not provide documents in support of the payments and inspection and acceptance reports for the goods or services rendered,” the auditor said.
The report shows payments of Sh1,143,096,785 were for two projects and were made to an international supplier by the bank for goods purportedly delivered to various TVET institutions.
Gathungu said the expenditure was not supported by a financing agreement though the management indicated one was signed on September 5, 2013, and an addendum on May 5, 2016.
“There have been no audited accountability statements for the projects since inception,” the auditor said, adding that the activities were not supported by approved work and procurement plans.
Gathungu has also flagged Sh2.5 billion, which she said was disbursed during the Covid-19 lockdown when students were not in session.
“In the circumstances, the disbursement of Sh2,528,002,500 was not a proper charge to public funds,” the auditor said.
Also in question is Sh2.7 billion, which the department said it disbursed to institutions for construction of TVETs throughout the country.
Gathungu said the amounts were expensed at the point of disbursement and the same was not accounted for adequately.
She said management did not provide evidence in support of receipt of funds by the implementing institutions.
“The receiving institutions did not prepare accountability statements, expenditure summaries, progress certificates and project progress status report to support payments and utilisation of the funds.
“The accuracy, completeness and validity of the capital disbursements amount of Sh2,710,510,124 could not be confirmed,” Gathungu said.
The revelations came hot on the heels of an audit, which unearthed a Sh2 billion scandal at the ministry’s Basic Education department. Previous audits showed taxpayers may have lost more than Sh5 billion so far.
The new audit further revealed that the department used unverified data, which resulted to over-disbursement of Sh28 million in student capitation funds.
Whereas the Kenya Universities and Colleges Central Placement Service put the student enrolment at 182,388, an analysis showed that only 161,328 were on board.
An analysis by auditors revealed that 27 were non-citizens, 18,307 did not provide index numbers and 2,726 were duplicates. The department didn’t explain why the student data was not reconciled.
“In the circumstances, the accuracy and completeness of the disbursements of Sh28,005,000 as capitation could not be confirmed as a proper charge to public funds,” Gathungu said.
Payments to the tune of Sh722 million to contractors who undertook constructions at various TTIs has also been queried for lack of supporting documents.
Gathungu said the expenditure summaries, procurement procedures and project periodic architect’s valuation certificates were not provided for audit verification.
A disbursement of Sh28.3 million made on June 30, 2021, for verification of trainees’ enrolment data in TTIs, has also been flagged.
The auditor said details of the institutions where the amounts were transferred to, were not provided for her review.
“In addition, the expenditure has not been supported by a work plan, budgetary allocation, institutions to be visited, a report after the verification exercise and proof of actual travel to verify the trainees,” she said.
A payment of Sh11 million, which was described as salary reimbursement was not explained and no supporting document was provided for audit review.
Also flagged was Sh5 million paid as overtime allowance to staff and Sh8.8 million in respect of leave commutation without the necessary approvals and justification.
Travel allowances amounting to Sh4,240,200 could not be matched to any activities related to the procurement of specialised materials and services.
“The imprest documents to support the travels were not provided for audit review. Under the circumstances, accuracy, completeness and validity of the expenditure could not be confirmed,” the auditor said.
TVET is among President Uhuru Kenyatta’s key pillars in delivering the Kenyan dream and has been instrumental in ensuring 100 per cent transition from secondary schools.
(Edited by Bilha Makokha)
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