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Tourism department on spot for spending Sh14m on calendars

• Auditor General Nancy Gathungu also said the department single-sourced the tender for the calendar work.  • She also said the department overpaid some staff members' subsistence and per diem for foreign trips.  

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by The Star

Coast04 August 2022 - 15:03
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In Summary


• Auditor General Nancy Gathungu also said the department single-sourced the tender for the calendar work. 

• She also said the department overpaid some staff members' subsistence and per diem for foreign trips.

 

Auditor General Nancy Gathungu

The Tourism department is on the spot after the Auditor General found it spent Sh14 million to print wall and table calendars last year.

The latest report also faults the department for single-sourcing the tender for the work.

The audit report says that out of a budget of Sh272,705,455 dedicated for goods and services, Sh30,558,945 was used for specialised materials. It says the calendars fall in that specialised material category.

Some Sh14,238,106 was paid for designing and printing the calendars.

“The financial statements for the year under review reflect use of goods and services balance of Sh272,705,455, which includes payments of Sh30,558,945 in respect of specialised materials which in turn includes payments totalling to Sh14,238,106 for design and printing of calendars,” the report read.

The auditor reported the department requested the Kenya Tourism Board in October 2020 to get the job done, but in an irregular turn of events, the service was then done by a different entity.

“The State Department on October 5, 2020, requested the Kenya Tourism Board (KTB) to undertake the design and printing of Government calendars for the year 2021. Authority to Incur Expenditure amounting Sh14,000,000 was issued to KTB in November 2020.”

Some of the issues the auditor cited were the decision to single-source, in contravention of the department’s procurement plan for the year 2020-2021. It reflected planned procurement of wall calendars and desk calendars, items to be procured using the open tender method.

According to the initial plan, the quantities to be procured were 50,000 units of wall calendars at estimated unit cost of Sh320 (total Sh16,000,000) and 25,000 units of desk calendars at estimated unit cost of Sh300 (Sh7,500,000).

The Auditor General also reported the department’s management through the Kenya Tourism Board engaged a procuring agent at an agency commission cost of Sh2,045,705 to design and print 90,250 and 42,200 units of desk calendars at a total cost of Sh12,192,402.

“No justification was provided for the use of a procuring agent instead of open tender method, contrary to Section 51 of the Public Procurement and Asset Disposal Act, 2015,” the report read.

“Procurement documents such as notice of advertisement, evaluation minutes, letter of award and contract agreement between the procuring agent and KTB were not availed for audit review.

“Consequently, the Management was in breach of the law and the validity of the expenditure of Sh14,238,106 for the year ended could not be confirmed.”

The auditor also said the department overpaid some staff members' subsistence and per diem for foreign trips. 

It says that it incurred Sh745,498 for the foreign trips allowances but one officer was paid per diem for 13 days while other officers travelling on the same trip were paid for eight days. 

Overall, the taxpayer could have lost Sh286,730 in excess payment to the officer.

"No explanation has been provided for the extra five days paid to one officer that occasioned an overpayment of Sh0286,730. Consequently, the effectiveness of internal controls on the management of imprests could not be confirmed," the audit report said.

(Edited by V. Graham)

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