Government agencies on the spot as MPs expose massive irregularities

Former and current officials from four state agencies could face anti-corruption investigations over massive financial irregularities and procurement flaws during former President Uhuru Kenyatta's tenure.

A new report by the National Assembly’s Public Accounts Committee (PAC) has revealed extensive violations that could land top officials in trouble.

The report, covering the financial year ending June 30, 2022, calls on the Ethics and Anti-Corruption Commission (EACC) to probe the alleged misconduct.

Lawmakers are also recommending disciplinary measures against officials found responsible for the financial mismanagement.

One of the agencies under scrutiny is the Fisheries Department, which has been questioned over expenditures related to the Liwatoni tuna fish hub.

An audit flagged Sh1.6 billion in spending Sh1.1 billion for construction and Sh500 million for other expenses.

The Auditor General, Nancy Gathungu, raised concerns over the lack of crucial documents, including user requisitions, feasibility studies, bills of quantities, technical drawings, and environmental impact assessments.

She noted that, without these documents, it was impossible to verify whether the project cost was justified.

"The committee recommends that the EACC expeditiously conducts investigations into the entire project," the report stated. The Sh1.4 billion project remains incomplete.

Another area of concern is the reported expenditure of Sh2.8 million on stocking unspecified dams and fish ponds. The PAC found that the fingerlings were delivered a year before any professional procurement opinion was issued. Lawmakers were not satisfied with the explanation from the accounting officer.

"The committee recommends that the EACC expeditiously conducts investigations into the matter and that the accounting officer surcharges and initiates disciplinary action on those involved," the report stated.

Additionally, the PAC flagged the loss of Sh34 million at the Molo law courts, calling for an investigation. The committee has also ordered civil recovery of undisclosed amounts lost at Embu, Nakuru, and Malindi court stations.

Concerns were also raised over a Sh446 million procurement linked to a project for youth employment and vocational training. Lawmakers questioned why the contract was awarded before a financier was identified.

The PAC criticized the decision to outsource procurement to a Germany-based agent, selected by the German Development Bank, noting that the financing arrangement seemed skewed in favor of Germany.

"The committee recommends that the EACC conducts investigations into the procurement," the report said.

The EACC has also been urged to investigate cost variations in the construction of a fire station and street lights in Lodwar town.

The PAC dismissed claims by the Kenya Urban Project management that the contractor had compensated for the losses.

"The committee noted that the purported compensation by the contractor was unauthorized and irregular," the report stated.

In Kisumu County, auditors found a trailer missing from a government project, with no explanation provided.

MPs reported that at least Sh10 million remains unaccounted for and want the EACC to investigate the payments.

Furthermore, lawmakers have flagged Sh11 million spent on purchasing assorted office items, farm equipment, and electricity services at Muhoroni Milk Plant.

Procurement records for the farm equipment purchase were missing, raising further concerns about accountability.