Breaking News

Auditor queries Transport ministry over Sh2 billion

Auditor general Edward Ouko/COURTESY

The Transport ministry failed to disclose Sh2 billion proceeds from foreign borrowing, an audit of the ministry records reveals.

Statements of receipts sent to Auditor General Edward Ouko showed Sh24,746,958,749 in respect of proceeds from foreign borrowing while the total journal entries indicated Sh27,541,044,073.

Taxpayers’ may have lost Sh2,794,085,323 resulting from the nondisclosure.

“The correctness and accuracy of the statement of receipts and payments for the year ended 30 June 2015 could not be confirmed,” Ouko said.

The report tabled by Majority leader Aden Duale on Wednesday also revealed accountability questions of monies received by the docket.

For instance, the ministry gave conflicting figures on the amount it received from foreign grants.

During the year under review, statements of receipts shown to the auditor indicate Sh5,030,114,823 as proceeds from foreign grants and only Sh3.8 billion could be supported with documents.

“The supporting schedule and the ledger showed an amount of Sh3,861,475,171 resulting to unexplained difference of Sh1,168,639,652,” Ouko said.

The report also revealed the ministry ignored advise from its own engineers and paid Sh6 million over and above the recommended cost of a road.

The contract was awarded at a contract price of Sh34,876,995 while engineer’s estimate was Sh28,574,500.

The bidder – according to the report – was also the highest of the five.

The second ranked bidder in technical evaluation stage, MITS Electrical, had quoted Sh20,995,000. The country would have saved Sh13,881,995 had it considered the second bidder for the road project.


ALSO READ  Khashoggi murder: Saudis refuse Turkey extradition request

By continuing to use the, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.