The Auditor General has raised concern over the stalled Sh786.6 million Education Resource Centre at the Kenya Institute of Curriculum Development.
In the Auditor General’s report 2024, Nancy Gathungu found that the project was yet to be completed despite the contractor having been paid Sh724.4 million as of June 2024.
The project was initially awarded in May 2013. Additionally, the contractor had been paid Sh15.04 million lease-way payable at the rate of Sh1.5 million per year.
According to Gathungu’s report, the project stalled due to non-remittance of development funds to KICD by the Exchequer, despite having an approved budget.
The Auditor General also said the project progress could not be verified since the status report was not provided for audit review.
“In the circumstances, value for money has not been realised from the investment of Sh739 million on the construction of the Education Resource Centre,” the report said.
The report also flagged illegal procurement processes at the institute, which was irregularly split and awarded to two contractors.
The two contracts were valued at Sh3.8 million and Sh1.9 million, totalling Sh5.7 million. The auditor said this was above the procurement threshold of Sh5 million for the use of the open tender procurement method.
“This was contrary to Section 54(1) of the Public Procurement and Asset Disposal Act, 2015, which states that ‘no procuring entity may structure procurement as two or more procurements for the purpose of avoiding the use of procurement procedure, except where prescribed’. In the circumstances, management was in breach of the law,” the report said.
Also flagged in the audit was the unsupported procurement process for vehicle repairs worth Sh3.6 million.
No documented justification was provided for audit as required by Regulation 90(1)(a) of the Public Procurement and Asset Disposal Regulations, 2020.
The law provides that where an accounting officer uses direct procurement, the procuring entity shall record the reasons upon which it makes a determination that the relevant condition is satisfied.
Additionally, an ad hoc evaluation committee was not established as provided in the public procurement law.
The institute also failed to report to the Public Procurement Regulatory Authority about the direct procurement of the repairs, which exceeded the Sh500,000 limit provided in law. In the circumstances, KICD management was in breach of the law.
Other issues raised include wastage of public resources by failing to close dormant bank accounts, thus accumulating unnecessary bank maintenance charges.
Despite the institute collecting Sh217 million, the audit found that the collection was not surrendered to the National Exchequer, contrary to Public Finance Management (National Government) Regulations, 2015.
The audit further found inconsistencies in the supply of books to schools, particularly Form 3 Set Books and Integrated Science for Grade 7.
Records provided for audit indicate the institute procured and distributed 865,315 Form 3 set books titled Fathers of Nations across the country.
However, according to the National Education Management Information System (Nemis), which provides the basis for text book distribution, there were 914,601 students in Form 3, resulting in an undersupply of 49,286 set books.
“In the circumstances, the students who did not receive a copy of the set book were deprived of the benefits of learning,” the report said.
Integrated Science Grade 7 books were oversupplied by 183,708 copies valued at 27,951,172, and value for money was not realised.
