•In one case, the report shows, taxpayers did not get value for money as the full contract sum was paid when the work was poorly done and not completed.
•The report says some revenues generated by selling assets were not properly captured in the government records, exposing taxpayers to potential loss.
Image: EZEKIEL AMING'A
Auditor General Nancy Gathungu has put the State Department of Livestock on the spot over irregular expenses not recorded on official books and millions not properly accounted for.
Gathungu also flagged the handling of tenders in the department.
In one case, the report shows, taxpayers did not get value for money as the full contract sum was paid when the work was poorly done and not completed.
The report says some revenues generated by selling assets by the department were not properly captured in the government records, exposing taxpayers to potential loss of money.
The report shows that the accounting books at the department indicate receipts and payments amounting to Sh18,672,004 in respect of proceeds from the sale of assets.
The amount was derived from the sale of certified seeds, breeding stocks, sale of inventories and commodities from across the country recorded as Appropriations-In-Aid by the subcounty accountants, and recorded in the miscellaneous receipts for onward surrender to the department.
But the department did not maintain at the headquarters any documentation in support of the proceeds from the sale of assets.
“In the circumstances, it was not possible to confirm the completeness and accuracy of the proceeds from the sale of assets of Sh18,672,004 for the year ended June 30, 2021,” the report reads.
The records were not complete as revenue from institutes oversight by the department was not properly accounted for.
The report shows the monies amounting to over Sh44 million received from the institutes cannot be traced.
“Review of bank statements and cash book revealed that revenue had been collected from Animal Health and Industry Training Institute - Ndomba, Meat Training Institute-Machakos, Animal Health and Industry Training Institute-Nyahururu, and Dairy Training Institute - Naivasha of Sh22,197,835, Sh2,120,450, Sh4,605,604 and Sh14,803,111, respectively,” the report says.
However, the report shows, fees and levies amounting to Sh43,727,000 collected at the four training institutes operated by the department were spent at the source and were not included in the receipts disclosed in the financial statements for the year ended June 30, 2021.
“Consequently, the accuracy and completeness of the total receipts of Sh4,359,093,493 reflected in the financial statements for the year ended June 30, 2021, could not be confirmed,” it shows.
Also questioned is the decision to make full payment for projects that had not been completed and had clear signs of poor workmanship, further exposing taxpayers to the possibility of loss.
It shows that it paid some Sh19,848,632 for the construction of a hatchery and a poultry house at Marimanti sheep and goat station in Tharaka Nithi, the complete sum of the contract despite being at 82 per cent of completion at the time.
“The first payment certificate of Sh19,848,632 and a certificate of practical completion were issued on June 12, 2020, by the State Department of Public Works to that of the Livestock, advising the latter to pay 100 per cent of the value of works,” it says.
This was done contrary to the site meeting minutes of June 11, 2020, which indicated that the contract’s overall progress was at 82 per cent according to the architect's report.
In addition, the project’s implementation progress report dated June 26, 2020, indicated the project to be 85 per cent complete.
“As at the time of audit verification in October 2021, although the full contract sum of Sh19,848,632 had been paid, construction of ceiling and cold-room was still pending,” the report shows
“In addition, cracks were noted on various walls of the hatchery and the veranda was detaching from the building a clear indication of poor workmanship.”
Further, the auditor showed, that despite incomplete and poorly done works in this contract, the same contractor was awarded another Sh14 million tender for the construction of additional works at the hatcheries unit.
The second contract number was MOALF&C/SDL/DLP/RT/12/2020-2021 at a sum of Sh14,695,077.
It concludes that the taxpayers did not get value for money in the circumstances.
Edited by Kiilu Damaris