Kirinyaga county lost in excess of Sh10.65 million in inflated procurement, an audit report has revealed.
The report said the county bought a thermogun at Sh12,000 against the market price of Sh313 while N95 face mask cost Sh2,000 instead of Sh645.
This implies that the unit cost of a thermogun was 38 times more than the market price.
The revelations are contained in the financial audit report for Kirinyaga county executive for 2020-21 that exposes massive inflation of prices procured by the county.
Auditor General Nancy Gathungu also revealed enormous irregularities, unexplained expenditures and other financial anomalies amounting to more than Sh500 million.
According to the report, the county contracted several suppliers for the delivery of various items to Kerugoya County Referral Hospital.
“However, a review of the procurement records revealed that included in the specialised materials are various items procured at Sh23.44 million which is Sh10.65 million above the market rate,” the report reads.
The prices were above the Public Procurement Regulatory Authority Market Price Index for March 2021.
Besides the thermogum and N95 masks, the county procured 11 other items at highly inflated prices.
They include stainless food trolley which the county bought a piece at Sh320,000 against the market price of Sh87,000, an oxygen flowmeter that cost the county Sh28,500 instead of Sh12, 786 and a wheelchair folding cost Sh50,000 instead of Sh12, 262 per piece.
Kirinyaga bought one ICU bed for Sh3.52 million compared to the market price of Sh2.32 million, N95 3M face mask cost Sh2, 000 instead of Sh645 while N95 face mask 3ply cost Sh1,915 instead of Sh969.
Further, a standard delivery set costs the county Sh26, 500 compared with the market price of Sh11, 855.
“In the circumstances, value for money for the expenditure of Sh10.65 million could not be ascertained,” the report reads in part.
The report also puts the county executive on the spot for failing to support or account for Sh61.80 million spent on various items.
In the revelations that could trigger concerns of lost public cash, Gathungu said that the county failed to provide payment vouchers and supporting documents to authenticate the expenditure.
The county reported spending the cash on procurement of fuel, oil, lubricants, office furniture and institutional equipment and waterworks. “In the circumstances, the validity of the above expenditures amounting to Sh61.80 million could not be confirmed.”
In yet another query, the auditor general could not trace 21 computers bought for Sh2.62 million to support the Hospital Information Management System in two hospitals.
“Review of related documents revealed that the computers were not traced in the store’s ledgers, the inspection and acceptance committee certificate did not include acceptance or rejection remarks,” the report said.
It added that there was no notification of award and acceptance letter from the winning bidder.
“Further, the goods received vouchers, the local purchase order and counter receipt voucher to acknowledge receipt and installation of the computer software at the two hospitals was not availed for audit,” it said.
The auditor also faulted the Kirinyaga government for spending Sh63.63 million on the supply and delivery of murram.
In the previous financial year, the county used Sh436.19 million to procure road equipment and machinery to be used for road excavation, delivery of murram, grading and gravelling of various county roads.
“No explanation was provided as to why the county outsourced the service whereas it had the necessary equipment,” Gathungu said in the report.
“In the circumstance, had the county equipment been used, a savings of Sh63.36 million would have been realised and used in other programmes to benefit the people of Kirinyaga county.”
The county has also been indicted for various anomalies in the use of Sh127.34 million advanced to the county by the Kenya Roads Board.
While the county executive spent the cash, there was no evidence to show that public participation was conducted in the preparations of the annual road works programme contrary to the constitution.
The county did not also indicate the kilometres of roads it carpeted or whether the works were accepted or rejected by the inspection committee.
“In the circumstances, it was impossible to assess or measure the road works to determine if the value for money was achieved. Further, the management breached the law by lack of public participation,” the report said.
Governor Anne Waiguru’s administration, the report said, is only dominated by one community that controls 92 per cent of the workforce as 43.54 per cent of the county’s income goes into payment of staff, instead of 35 per cent.
The county has also been indicted for taking long —two weeks to one month — to bank the revenues it collects contrary to PFM (County Government) Regulations 2015, which states that the cash shall be banked not later than five working days.
(edited by Amol Awuor)
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