in the headlines
- Thread starter Meria
- Start date
Mwalimu-G
Elder Lister
The Energy sector takes the biskuti again...
COSTLY EXPERTS
Auditor flags irregular Sh1.7bn ministries' spending on consultants
Kenya Power paid Sh274 million for consultancy services on supervision of installation of prepaid meters
In Summary
• Cases cited of consultants not reaching the projects yet claiming payments.
• Also cited are instances where the expatriates have been procured irregularly.
COSTLY EXPERTS: Auditor General Nancy Gathungu during a session in Parliament
Image: EZEKIEL AMING'A
Auditor General Nancy Gathungu has cast the spotlight on the irregularities in the procurement of consultants hired by state agencies.
The infractions have been flagged in a new audit, which highlights irregular payments to the tune of Sh1.72 billion.
ADVERTISING
Gathungu made the revelations in her review of Jubilee administration spending for the year ending June 2021.
She cast doubt if taxpayers got value for money in payments to the consultants.
Some ministries violated procurement laws when hiring the experts, causing an unnecessary increase in project costs.
Topping the query is a Sh274 million payment by Kenya Power for consultancy services to supervise the installation of prepaid meters.
However, there was no evidence that the contractor was at any of the sites to supervise the works.
“Site visits revealed no evidence of consultants’ personnel presence at the sites raising doubt as to whether they had been deployed as per the contract,” Gathungu said.
Also flagged is Sh517 million paid to a consultant by the Kenya Airports Authority for the rehabilitation of JKIA Terminal 1B, C and D buildings.
The design work by the consultant was completed and the designs were handed over to KAA in June 2019 but the report is gathering dust on the authority’s shelves.
“Consequently, value for money may not have been achieved in view of the delay in implementation of the designs,” the auditor said.
The Petroleum department also irregularly procured consultants who were paid Sh48 million, being Sh17.2 million to a firm to produce a report on National Petroleum Master Plan.
Another Sh31 million was paid to a consultancy firm in respect of an inception report on the formulation of Upstream Petroleum Regulations.
Gathungu says the technical committee that approved the contractual outputs by the consultant was not properly constituted in line with the contract.
The Petroleum ministry, National Oil Corporation, National Treasury, KRA, Trade ministry, Attorney General, Presidential Delivery Unit, Kenya Pipeline Company, KenGen and EPRA were to approve.
However, only three organisations including Kenya Pipeline Company, National Oil Corporation and representatives from the State Department of Petroleum took part.
“The approvals, therefore, were not binding to the project management thereby making the payment irregular,” the report reads.
In Homa Bay, a consultant who was supervising the Oluch Kimira irrigation project has been called out for running away with two vehicles, which were in his custody.
The project procured the motor vehicles at Sh7.2 million but the same was not handed over after the completion of consultancy services.
“This is contrary to the contract, which states that after completion, the consultant shall hand over equipment and vehicles to the project,” the auditor said.
A consultancy fee to the tune of Sh55.5 million that was charged on a World Bank-funded project in Kisumu has also been queried.
“There was neither technical proposals nor technical evaluation of bids…an indication that there was no basis for an award of these works to the consultancy services company,” the report said.
Also queried is Sh29.9 million expended by the Vocational Technical Training department on consultancy services two years before the respective project kicked off.
The notification of award was in July 2018 to the successful consultant based in Germany and the contract was signed on September 9, 2020 - more than two years after notification of award.
“The locally incorporated company was not part of the bidding consortium and not the one notified of the award,” the auditor said.
Without an apparent contractual obligation, Gathungu said the department violated the Public Procurement and Disposal of Asset Act, 2015.
“The validity of contract with a local company and the payments made in respect of the contract could not be ascertained as the local company was not part of the consortium at bidding for the service,” she said.
In a project by the Education ministry, a consultant was irregularly paid Sh24.1 million to supervise the construction of physical science laboratories, yet the same was a different project.
Also queried was Sh37 million paid to an expert in the Kenya Primary Education Development project, which was found to lack any basis.
A consultant hired by Kerra was also found to have vacated a site in a situation that “could adversely impact on the quality of work done by the contractors.”
Also flagged is Sh22.4 million that was paid by the Transport department in 2014 to a consultant for the supply, installation, testing and commissioning of a Transport Data Centre.
The July 2012 consultancy agreement was to run for 64 weeks but the same has expired, with Gathungu warning the situation could set the stage for contingent liability of Sh36 million.
The National Environment Management Authority has also been queried over the regularity of two consultancy contracts.
The Lake Victoria South Water Works Agency also irregularly procured a consultant at Sh121 million.
“The management did not provide the approved procurement plan for audit verification,” the auditor said.
Similar queries were unearthed at Rift Valley Water Works Agency (Sh13.1 million) and Lake Victoria Water Works Development Agency’s contract, which was varied from Sh189.9 million to Sh302 million.
She cited a violation of PPADA, 2015, which caps variations at not more than 25 per cent of the original contract price.
A total of Sh8,429,679 spent on consultancy for Administration and Management of an Industry-Academia Platform in a World Bank project has also been flagged for breach of lender regulations.
Also flagged was Sh26,687,554, which was spent on consultancy for International Acceleration Process services given to firms that did not meet the cut during tendering.
COSTLY EXPERTS
Auditor flags irregular Sh1.7bn ministries' spending on consultants
Kenya Power paid Sh274 million for consultancy services on supervision of installation of prepaid meters
In Summary
• Cases cited of consultants not reaching the projects yet claiming payments.
• Also cited are instances where the expatriates have been procured irregularly.
COSTLY EXPERTS: Auditor General Nancy Gathungu during a session in Parliament
Image: EZEKIEL AMING'A
Auditor General Nancy Gathungu has cast the spotlight on the irregularities in the procurement of consultants hired by state agencies.
The infractions have been flagged in a new audit, which highlights irregular payments to the tune of Sh1.72 billion.
ADVERTISING
Gathungu made the revelations in her review of Jubilee administration spending for the year ending June 2021.
She cast doubt if taxpayers got value for money in payments to the consultants.
Some ministries violated procurement laws when hiring the experts, causing an unnecessary increase in project costs.
Topping the query is a Sh274 million payment by Kenya Power for consultancy services to supervise the installation of prepaid meters.
However, there was no evidence that the contractor was at any of the sites to supervise the works.
“Site visits revealed no evidence of consultants’ personnel presence at the sites raising doubt as to whether they had been deployed as per the contract,” Gathungu said.
Also flagged is Sh517 million paid to a consultant by the Kenya Airports Authority for the rehabilitation of JKIA Terminal 1B, C and D buildings.
The design work by the consultant was completed and the designs were handed over to KAA in June 2019 but the report is gathering dust on the authority’s shelves.
“Consequently, value for money may not have been achieved in view of the delay in implementation of the designs,” the auditor said.
The Petroleum department also irregularly procured consultants who were paid Sh48 million, being Sh17.2 million to a firm to produce a report on National Petroleum Master Plan.
Another Sh31 million was paid to a consultancy firm in respect of an inception report on the formulation of Upstream Petroleum Regulations.
Gathungu says the technical committee that approved the contractual outputs by the consultant was not properly constituted in line with the contract.
The Petroleum ministry, National Oil Corporation, National Treasury, KRA, Trade ministry, Attorney General, Presidential Delivery Unit, Kenya Pipeline Company, KenGen and EPRA were to approve.
However, only three organisations including Kenya Pipeline Company, National Oil Corporation and representatives from the State Department of Petroleum took part.
“The approvals, therefore, were not binding to the project management thereby making the payment irregular,” the report reads.
In Homa Bay, a consultant who was supervising the Oluch Kimira irrigation project has been called out for running away with two vehicles, which were in his custody.
The project procured the motor vehicles at Sh7.2 million but the same was not handed over after the completion of consultancy services.
“This is contrary to the contract, which states that after completion, the consultant shall hand over equipment and vehicles to the project,” the auditor said.
A consultancy fee to the tune of Sh55.5 million that was charged on a World Bank-funded project in Kisumu has also been queried.
“There was neither technical proposals nor technical evaluation of bids…an indication that there was no basis for an award of these works to the consultancy services company,” the report said.
Also queried is Sh29.9 million expended by the Vocational Technical Training department on consultancy services two years before the respective project kicked off.
The notification of award was in July 2018 to the successful consultant based in Germany and the contract was signed on September 9, 2020 - more than two years after notification of award.
“The locally incorporated company was not part of the bidding consortium and not the one notified of the award,” the auditor said.
Without an apparent contractual obligation, Gathungu said the department violated the Public Procurement and Disposal of Asset Act, 2015.
“The validity of contract with a local company and the payments made in respect of the contract could not be ascertained as the local company was not part of the consortium at bidding for the service,” she said.
In a project by the Education ministry, a consultant was irregularly paid Sh24.1 million to supervise the construction of physical science laboratories, yet the same was a different project.
Also queried was Sh37 million paid to an expert in the Kenya Primary Education Development project, which was found to lack any basis.
A consultant hired by Kerra was also found to have vacated a site in a situation that “could adversely impact on the quality of work done by the contractors.”
Also flagged is Sh22.4 million that was paid by the Transport department in 2014 to a consultant for the supply, installation, testing and commissioning of a Transport Data Centre.
The July 2012 consultancy agreement was to run for 64 weeks but the same has expired, with Gathungu warning the situation could set the stage for contingent liability of Sh36 million.
The National Environment Management Authority has also been queried over the regularity of two consultancy contracts.
The Lake Victoria South Water Works Agency also irregularly procured a consultant at Sh121 million.
“The management did not provide the approved procurement plan for audit verification,” the auditor said.
Similar queries were unearthed at Rift Valley Water Works Agency (Sh13.1 million) and Lake Victoria Water Works Development Agency’s contract, which was varied from Sh189.9 million to Sh302 million.
She cited a violation of PPADA, 2015, which caps variations at not more than 25 per cent of the original contract price.
A total of Sh8,429,679 spent on consultancy for Administration and Management of an Industry-Academia Platform in a World Bank project has also been flagged for breach of lender regulations.
Also flagged was Sh26,687,554, which was spent on consultancy for International Acceleration Process services given to firms that did not meet the cut during tendering.
It's Me Scumbag
Elder Lister
The AG and her team are a resilient group of Kenyans...The Energy sector takes the biskuti again...
COSTLY EXPERTS
Auditor flags irregular Sh1.7bn ministries' spending on consultants
Kenya Power paid Sh274 million for consultancy services on supervision of installation of prepaid meters
In Summary
• Cases cited of consultants not reaching the projects yet claiming payments.
• Also cited are instances where the expatriates have been procured irregularly.
COSTLY EXPERTS: Auditor General Nancy Gathungu during a session in Parliament
Image: EZEKIEL AMING'A
Auditor General Nancy Gathungu has cast the spotlight on the irregularities in the procurement of consultants hired by state agencies.
The infractions have been flagged in a new audit, which highlights irregular payments to the tune of Sh1.72 billion.
ADVERTISING
Gathungu made the revelations in her review of Jubilee administration spending for the year ending June 2021.
She cast doubt if taxpayers got value for money in payments to the consultants.
Some ministries violated procurement laws when hiring the experts, causing an unnecessary increase in project costs.
Topping the query is a Sh274 million payment by Kenya Power for consultancy services to supervise the installation of prepaid meters.
However, there was no evidence that the contractor was at any of the sites to supervise the works.
“Site visits revealed no evidence of consultants’ personnel presence at the sites raising doubt as to whether they had been deployed as per the contract,” Gathungu said.
Also flagged is Sh517 million paid to a consultant by the Kenya Airports Authority for the rehabilitation of JKIA Terminal 1B, C and D buildings.
The design work by the consultant was completed and the designs were handed over to KAA in June 2019 but the report is gathering dust on the authority’s shelves.
“Consequently, value for money may not have been achieved in view of the delay in implementation of the designs,” the auditor said.
The Petroleum department also irregularly procured consultants who were paid Sh48 million, being Sh17.2 million to a firm to produce a report on National Petroleum Master Plan.
Another Sh31 million was paid to a consultancy firm in respect of an inception report on the formulation of Upstream Petroleum Regulations.
Gathungu says the technical committee that approved the contractual outputs by the consultant was not properly constituted in line with the contract.
The Petroleum ministry, National Oil Corporation, National Treasury, KRA, Trade ministry, Attorney General, Presidential Delivery Unit, Kenya Pipeline Company, KenGen and EPRA were to approve.
However, only three organisations including Kenya Pipeline Company, National Oil Corporation and representatives from the State Department of Petroleum took part.
“The approvals, therefore, were not binding to the project management thereby making the payment irregular,” the report reads.
In Homa Bay, a consultant who was supervising the Oluch Kimira irrigation project has been called out for running away with two vehicles, which were in his custody.
The project procured the motor vehicles at Sh7.2 million but the same was not handed over after the completion of consultancy services.
“This is contrary to the contract, which states that after completion, the consultant shall hand over equipment and vehicles to the project,” the auditor said.
A consultancy fee to the tune of Sh55.5 million that was charged on a World Bank-funded project in Kisumu has also been queried.
“There was neither technical proposals nor technical evaluation of bids…an indication that there was no basis for an award of these works to the consultancy services company,” the report said.
Also queried is Sh29.9 million expended by the Vocational Technical Training department on consultancy services two years before the respective project kicked off.
The notification of award was in July 2018 to the successful consultant based in Germany and the contract was signed on September 9, 2020 - more than two years after notification of award.
“The locally incorporated company was not part of the bidding consortium and not the one notified of the award,” the auditor said.
Without an apparent contractual obligation, Gathungu said the department violated the Public Procurement and Disposal of Asset Act, 2015.
“The validity of contract with a local company and the payments made in respect of the contract could not be ascertained as the local company was not part of the consortium at bidding for the service,” she said.
In a project by the Education ministry, a consultant was irregularly paid Sh24.1 million to supervise the construction of physical science laboratories, yet the same was a different project.
Also queried was Sh37 million paid to an expert in the Kenya Primary Education Development project, which was found to lack any basis.
A consultant hired by Kerra was also found to have vacated a site in a situation that “could adversely impact on the quality of work done by the contractors.”
Also flagged is Sh22.4 million that was paid by the Transport department in 2014 to a consultant for the supply, installation, testing and commissioning of a Transport Data Centre.
The July 2012 consultancy agreement was to run for 64 weeks but the same has expired, with Gathungu warning the situation could set the stage for contingent liability of Sh36 million.
The National Environment Management Authority has also been queried over the regularity of two consultancy contracts.
The Lake Victoria South Water Works Agency also irregularly procured a consultant at Sh121 million.
“The management did not provide the approved procurement plan for audit verification,” the auditor said.
Similar queries were unearthed at Rift Valley Water Works Agency (Sh13.1 million) and Lake Victoria Water Works Development Agency’s contract, which was varied from Sh189.9 million to Sh302 million.
She cited a violation of PPADA, 2015, which caps variations at not more than 25 per cent of the original contract price.
A total of Sh8,429,679 spent on consultancy for Administration and Management of an Industry-Academia Platform in a World Bank project has also been flagged for breach of lender regulations.
Also flagged was Sh26,687,554, which was spent on consultancy for International Acceleration Process services given to firms that did not meet the cut during tendering.