Ouko queries Sports ministry's huge expenses on World Cup, stadia - Daily Nation

Ouko queries Sports ministry's huge expenses on World Cup, stadia

Thursday March 21 2019

Sports Cabinet Secretary Rashid Echesa

The then Sports Cabinet Secretary Rashid Echesa during an interview at the ministry's headquarters at Kencom Building in Nairobi, November 9, 2018. PHOTO | KANYIRI WAHITO | NATION MEDIA GROUP 

By DAVID MWERE
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The Sports ministry is on the spot over questionable expenditures, including Sh2.5 million for two National Assembly members to watch the 2018 Fifa World Cup in Russia, according to Auditor-General Edward Ouko's latest report.

The report for the year ending June 30, 2018, tabled in the House by leader of majority leader Aden Duale, indicts the ministry over Sh1.6 billion in unsupported expenditures on five stadia and 10 training pitches across the country.

Mr Ouko also questions the Sh329.8 million recorded by the ministry as pending bills, saying its validity could not be ascertained. He also spotlights the unbudgeted disbursement and excess vote to the National Sports Fund.

Mr Rashid Echesa was the Sports Cabinet Secretary at the time. President Uhuru Kenyatta fired him and replaced him with Amina Mohamed, who was in the Education docket.

STADIA

The facilities in question are Moi Sports Centre Kasarani and Nyayo in Nairobi; Kinoru in Meru, Kipchoge Keino in Eldoret, and Jomo Kenyatta Stadium in Machakos.

The stadia and 10 training pitches were to take four months in readiness for the CHAN 2018 Championships.

According to the AG, the ministry awarded Sh1.6 billion to M/s Auditel Kenya limited, a Spanish company for design, supply and testing, commissioning and supervision of security, access control, communication, as well as audiovisual and pitch lighting systems.

However, the event venue was changed to Morocco due to slow progress in the work.

Mr Ouko notes that Sh300.5 million of the contract sum was advanced to the company in October 2017 as a security guarantee by a bank in Madrid, Spain.

“It was noted that the security guarantee was valid up to February 2018 and had therefore expired by the time of the audit carried out in November 2018. No evidence was presented to confirm its re-validation,” Mr Ouko says, noting that it is not clear when and if the project will be completed.

WORLD CUP

Mr Ouko did not reveal the names of the MPs who were sponsored by the taxpayer to watch the world cup in July 2018.

He, however, wants the ministry to recover the Sh2.5 million irregularly expended on the legislators despite the requests for payment having been made by the Clerk of the National Assembly.

Mr Ouko notes that because MPs serve under the Parliamentary Service Commission (PSC), all their expenses should have emanated from the commission.

In addition, the ministry cannot account for the Sh404.4 million transfers from the National Treasury to the National Sports Fund, which is under its watch. 

The theft of 130 parking lights valued at Sh3.6 million, that had been installed at Kasarani stadium during the IAAF World under 18 championship in 2017, has also been reported by Mr Ouko.

Although the security firm at the stadium acknowledged the theft and requested to resolve the issue, no replacement has been made to date, according to the report.

PENDING BILLS

On the pending bills that have accrued over three years, the auditor says the ministry has not clarified why they did not form the first charge in the subsequent year as required by the Public Finance Management Act.

Mr Ouko also questions the supply and delivery of petroleum products worth Sh11.2 million in bulk.

According to the contract signed with Ramji Haribhai Devani Limited, a discount of Sh4.25 on the Energy Regulatory Commission (ERC) unit prices was to be offered for every liter of diesel or petrol supplied.

But a review of the fuel analysis indicates that the Local Organising Committee did not enjoy this discount.

It was also not clear why the fuel was procured in bulk yet the buses, minibuses, vans, saloon cars and luxury cars had been hired.