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NYS, ministry tussle over Sh635m debt

Tuesday August 6 2019

National Youth Service

This image taken on June 25, 2019 shows the National Youth Service headquarters in Ruaraka, Nairobi. There is massive unaccountability of funds at the agency. PHOTO | FILE | NATION MEDIA GROUP 

SAMWEL OWINO
By SAMWEL OWINO
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The National Youth Service (NYS) is locked in a battle with the Ministry of Public Service — its parent ministry — over Sh635 million the ministry failed to repay it.

An audit report for the 2017/2018 financial year indicates that the ministry borrowed Sh1,114,827,220 without proper authority and repaid Sh478,927,907, but still owes Sh635,899,313 million.

In a report tabled before the National Assembly last Thursday, Auditor-General Edward Ouko said the money was not reflected in the NYS’s financial statement, making its recovery doubtful.

The money borrowed by the ministry was under the NYS Mechanical Trust Fund (MTF), which was established in 2011, and is meant for maintaining, repairing and servicing the institutions motor vehicles, plant and equipment.

“The assets of the NYS Mechanical Trust Fund are understated, casting doubt on the recoverability of the debt of Sh635,899,313 as at June 2018,” the report says.

NON-COMPLIANCE

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The NYS is also on the spot over spares worth Sh175 million that it bought in the 2014/2015 financial year, but which have never been used.

“This is a possible indicator of obsolescence of the stock, but no provision for impairment has been made against the balance,” the report notes.

In addition, the NYS procured spare parts worth Sh355,279 directly during the period under review, contrary to the Public Procurement and Assets Disposal Act, 201.5

“No explanation has been provided for the non-compliance,” the report says.

RENT SERVICES

It also queried the Sh265 million the NYS received for renting out its small vehicles and lorries. It notes that there were a number of anomalies in the process.

For instance, no contract or service agreements were provided to support the billed amounts for the services provided.

The report further says it is not clear the nature of services rendered for the service equipment and who is supposed to pay for the work done.

“The accuracy and validity of revenue for hire of small vehicles balance of Sh265,727,084 could not be ascertained,” the report says.