Fred Simiyu is on the spot for handing out tenders worth Sh1.4 billion during the World Trade Organisation ministerial conference held in Nairobi in 2015.
Mr Ouko says Mr Simiyu handed out the 15 tenders through single sourcing while passing them as competitive through references to fictitious bids by ghost companies.
Audits into how contracts worth more Sh1 billion were awarded during a global conference has recommended the punishment of the former top bosses of a State corporation.
Auditor General Edward Ouko has outlined how top managers of Kenyatta International Convention Centre (KICC) falsified and deleted records to hide audit trails of procurement for the World Trade Organisation conference.
Mr Ouko has recommended that Sh666 million claimed by suppliers should not be paid.
Suppliers of goods and services during the inter-ministerial meeting had claimed a total of Sh1.1 billion but Ouko recommended that only Sh387 million should be paid to genuine suppliers.
It shows that tenders were executed in complete disregard to the Public Procurement and Disposal Act of 2005 and its regulations.
Mr. Ouko says he could not get minutes of tender committee meetings, contract documents and local purchase orders for verification – making him believe the transactions were done outside the law.
In one case, the auditor says, the corporation made several procurements for goods and services worth Sh70.8 million without going through competitive bidding.
The Auditor General says the corporation risks having its assets auctioned in the event the claims are not settled as most claimants have valid contracts.
The report was tabled in Parliament by Aden Duale on Wednesday and will be considered by the Public Accounts Committee.
The flaws have since seen KICC slapped with claims of up to Sh701.03 million by vendors who have not been paid on account of poor documentation.
The law stipulates that any direct procurement of value exceeding Sh500,000 has to be reported to the authority within 14 days after the notification of the award.
The report also says the tender committee was not properly constituted or involved in the hiring suppliers for projects that were directly procured.
The audit found that bids were invited for only five of the 17 projects related to the WTO 10th ministerial event but through the restricted tendering method.
Of the five, according to the report, only two were considered by the tender committee.