Auditor General puts KPA on spot over a new scam

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Is Kenya again in the wake of another new scam? An audit query has put the Kenya Ports Authority (KPA) on the spot, with fears that millions of shillings may have been lost in questionable tenders and payments for services never delivered.

From building contracts that were paid for but could not be physically verified to water supplied without delivery notes, and which cost more than double what was budgeted for, the State is fighting accusations of dishing out several tenders irregularly.

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KPA managers are also on the spot for frustrating auditors who were trying to verify various construction works for which Sh2.3 billion was spent as part of the close to Sh5 billion worth of suspicious tenders at the State agency.

“During the course of the audit, efforts to verify the existence and occurrence of these works was not possible since the management failed to facilitate the physical verification of the works,” auditors wrote concerning five works listed in KPA’s financial statements.

One item is simply marked ‘other works’ for which Sh98 million was spent.

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Although KPA dismissed the allegations of tender improprieties and defended the payments made to the various contactors, the auditors raised multiple questions on fat tenders floated by the State agency whose monthly revenues hit Sh50 billion in July last year.

Top among the audit queries are Sh100 million spent on three contracts to put up perimeter walls around various plots owned by KPA. Auditors maintain that the walls were never erected.

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KPA first contracted two firms to fence its land parcel number MN/111/528 in Takaungu, Kilifi County, at Sh71.3 million.

Thereafter, the agency paid another Sh24 million to fence another plot in Jomvu.

The auditors questioned how the firms were identified for the jobs as much as the fences do not exist on the ground.

 

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