Audit splashes more scandals at water agency
The minister for water and irrigation Charity Ngilu speaks at the National Water Conservation And Pipeline corporation headquarters in Nairobi's Industrial Area on November 1, 2010. PHOTO / JENNIFER MUIRURI
What you need to know:
- About Sh137 million feared lost through suspect payment for goods and services
An audit has exposed more rot in the Water ministry that could have led to the loss of about Sh200 million through questionable deals.
The National Water Conservation and Pipeline Corporation (NWCPC) might have lost Sh137 million in a year through unprocedural payments for goods and services.
The Efficiency Monitoring Unit (Emu) says about Sh60 million more may have been lost through irregularly drawn cheques, undelivered goods, theft and double payments to suppliers.
The Kenya Revenue Authority (KRA), too, could have lost huge amounts of money in unpaid taxes for goods and services paid for without evidence that the firms remitted the statutory deductions.
The Water and Irrigation ministry is under the spotlight over questionable award of tenders at parastatals under its watch.
The minister, Mrs Charity Ngilu, has distanced herself from claims of corruption on grounds she is not responsible for the procurement of goods and services at parastatals.
The Emu report, Management Audit Report for the Period 2008-2009 of NWCPC dated November 2010, was tabled before the Parliamentary Committee on Lands and Natural Resources but was not released to the media.
It identified double payments for goods and services, forgery of cheques, and collusion as some of the ways through which money may have been lost from the agency.
The losses could be a tip of the iceberg since the report only covered the first year of the Grand Coalition government, now in its third financial year.
Sue for payment
The report lists eight firms that were paid for services not rendered. It established that Sh82 million was paid to five firms owned by Mr Stephen Ndung’u.
“The huge claims (for Sh412 million)submitted and yet to be submitted by (Stephen) Ndung’u on behalf of his five firms have the potential of financially running down or exposing the corporation to litigation if not thoroughly examined….,” said the report.
But Mr Ndung’u’s lawyer, Mr Stephen Kibunja, dismissed the claims, saying his client had won the tenders fairly and was owed millions by the firm.“We have moved to court seeking the payments,” he said.
