PS Kibicho to answer on purchase of Sh650 million property

Interior Principal Secretary Karanja Kibicho has been summoned by members of Parliament over the acquisition of a Sh650 million property in Uganda in 2014.

The Chancery building located in Kololo, Kampala, houses the Kenyan High Commission and was acquired at the time Dr Kibicho served as the Foreign Affairs Principal Secretary.

Ms Amina Mohamed, now the Education boss, was the Cabinet secretary.

Dr Kibicho is expected to explain to the National Assembly's Public Accounts Committee why the ministry opted for the highest bid instead of a lower one of Sh250 million.

He is further required to disclose why the ministry overshot the Sh400 million budget allocated for the acquisition of a residence for the High Commission at a time the ministry was experiencing financial constraints.

INVESTIGATION

Interestingly, when the ministry wrote to the National Treasury requesting for more funds, the request was granted without a fight.

The summoning comes ahead of the planned visit to Uganda by the watchdog committee chaired by Ugunja MP Opiyo Wandayi to investigate the matter.

"Dr Kibicho is a prime witness who must appear before us and give us more information before we visit Uganda," Mr Wandayi said Monday.

The government chief valuer at the time the property was acquired is also expected to appear before the committee.

TAXPAYERS

The officer appraised the property at Sh600 million for the highest bid and Sh200 million for the lowest bid.

According to the 2014/15 financial year report by Auditor General Edward Ouko, the Foreign Affairs ministry committed the millions to purchase the property against the advice of a technical committee it put in place to help with the process.

This means that had the ministry been guided by the committee's report, it would have bought the property at Sh200 million, saving taxpayers millions.

The team submitted to the ministry final bids of Sh250 million, Sh362 million, Sh365 million, Sh385 million, Sh395 million, Sh550 million and Sh650 million.

ACCOUNTABILITY

More importantly, the committee had indicated that the lowest bid had passed technical and financial evaluation as required by the Public Procurement and Disposal Act.

"Why the ministry would go for the highest bidder is a question we will be seeking answers for," Mr Wandayi said.

And added: "Whoever was responsible will be held to account personally in the fullness of time."

The MPs have also questioned the economic viability of the Chancery building, which generates a measly Sh1.7 million a year in rent.

They argue that the investment does not add value.

A principal secretary, according to the Public Service guidelines, is the accounting officer of the ministry and the Cabinet secretary is in charge of policy formulation.