Energy ministry spent Sh1.4 million to recruit accountant

Energy department officials are on the spot for spending more than Sh1.4 million to recruit post that was never filled.

Auditor General Nancy Gathungu has red-flagged the amount spent in the hiring of a project accountant as wasteful.

“At the time of the audit, the position had not been filled, despite the expenditure of Sh1,431,400 having been incurred in respect of the process,” the auditor general said.

She revealed the process of recruitment was concluded with the interview panel recommending two candidates for appointment.

“In the circumstances, the value for money in the funds incurred for recruitment of the project accountant could not be confirmed,” Gathungu said.

Her recruitment criticism came alongside calling out the department's overpayments to KenGen, procurement irregularities, poor workmanship in construction of domestic biogas digesters, and anomalies in contracts.

Gathungu has also raised concerns about Sh400 million that the department irregularly received from its sister Department of Petroleum.

“The state department has no responsibility in the oil and petroleum industry …in the circumstances, the management was in breach of the law,” she said.

Of the biogas digesters, the auditor says it was doubtful the Sh45 million value for installation of biogas digesters in counties.

Gathungu said field verification of the projects revealed several unsatisfactory issue, including poor workmanship and delays in completing 60 biogases digesters in Tharaka and Meru counties.

“Further, four expansion chamber cover slabs in Meru county had not been cast while six chambers in Meru, Tharaka Nithi, Makueni and Taita Taveta counties had cracks posing safety risks to the users,” the auditor said.

Her report said, poor-quality gas cookers had been installed in Meru and Makueni counties.

“Some had malfunctioned, while other burners were worn out due to corrosion, within a year of use. At least 11 completed biodigesters in Makueni, Taita Taveta, Nyamira and Tharaka Nithi counties were not working.”

“Most water traps installed in the piping system were not functioning effectively, causing most of the biogas to malfunction or not to work optimally,” Gathungu reported.

In Makueni and Taita Taveta counties, six biogas digesters had gas leakages, while pressure gauges were not working at two sites, thereby affecting the functioning of the biogas equipment.

Two digesters in Makueni and Nyamira counties had been abandoned, while one in Taita Taveta county had never been used due to cracks that had not been repaired as at the time of inspection.

“The value for money on Sh45 million spent on the project could not be confirmed,” Gathungu said.

The report also highlighted irregular procurement of goods and services worth Sh14.6 million from unregistered suppliers.

Heads of procurement are obligated by the law to maintain and update lists of registered suppliers, contractors and consultants.

The auditor said the management was in breach of the law, further revealing the department’s procurement system is still manual, not digital as required.

“A review of procurement records indicated the ministry has not fully adopted the e-procurement platform as required by Executive Order 2 of 2018,” Gathungu said.

Also flagged are anomalies in an agreement between the department and an Australian company on sustainable green industries.

The auditor took issue with some exclusive rights given to the private company to undertake the project.

“No documentation or explanations were provided in support of the sourcing and ultimate procurement of the private company,” the report states

Gathungu said the green industries were not backed up by any needs assessment or any policy document.

Due diligence was conducted on the company 18 months later, contrary to the law, which provides that the preview be done before awarding of tender.

The audit also red-flagged delays in the implementation of the green climate fund project.

An agreement for the project was entered into between Kenya and Germany in September 2021 and the project was to be implemented in two phases.

“Review of the project revealed that the implementation period for Phase I of the project had lapsed, yet the project had not started, the report stated.