County told to cancel revenue collection deal
Auditor-General Edward Ouko before the Public Accounts Committee in Parliament on August 13, 2015. The Auditor-General on October 12, 2015 refuted claims he sanctioned payment of Sh250 million to a firm supplying election kits in 2013. FILE PHOTO | EVANS HABIL | NATION MEDIA GROUP
What you need to know:
- Citing numerous missteps in the procurement process, Auditor-General Edward Ouko concluded that the 4.5 per cent of all transactions retained by JamboPay are too high compared to what the Kenya Revenue Authority charges.
- A review of the cost-impact using the actual revenues for the 2012/2013 financial year, Mr Ouko said, established that the county government will spend Sh767.4 million in the five years the contract is supposed to run.
The Auditor-General has recommended that the Nairobi County Government cancels a contract for an electronic revenue collection system.
The system was set up by a private company whose selection criteria the Auditor-General faulted.
Citing numerous missteps in the procurement process, Auditor-General Edward Ouko concluded that the 4.5 per cent of all transactions retained by JamboPay are too high compared to what the Kenya Revenue Authority charges.
The auditor found that two other bidders, Virtual Mobile and Craftsilcon, had bid to charge 2.5 per cent of the transaction costs, but were not considered.
A review of the cost-impact using the actual revenues for the 2012/2013 financial year, Mr Ouko said, established that the county government will spend Sh767.4 million in the five years the contract is supposed to run.
The county was found to have refused to award the contract to firms that were proposing much lower transaction costs than JamboPay, whose parent company is Web Tribe Ltd.
“The county’s management should revoke the contract with Web Tribe Ltd and carry out a proper study of its revenue streams.”
“After identification of the various sources, the county should then develop a system that has adequate inbuilt controls that will protect the public good,” Mr Ouko concluded in the report tabled before the Assembly in July.
The report has angered some MPs, who said at a press conference Thursday that the anti-graft commission should investigate the manner in which the contract was awarded.
Makadara MP Benson Mutura said Governor Evans Kidero, who with then County Secretary Lillian Ndegwa signed the deal with Web director Danson Muchemi, should cancel it.
However county ICT director Benter Ogot said they had provided the auditors with procurement documents, which show the evaluation committee did a professional job.
