IEBC in the spotlight over Sh50m dubious payment

Independent Electoral and Boundaries Commission CEO Ezra Chiloba speaks before the Parliamentary Accounts Committee on March 20, 2018 regarding the transportation of election materials in the previous election. PHOTO | JEFF ANGOTE | NATION MEDIA GROUP

What you need to know:

  • Ezra Chiloba said that the payment to Alhamdul Company was made upon a request by one Mr Abdullahi Yussuf Farah.
  • Mr Chiloba said the commission acknowledges that there was confusion and missing information during the distribution of the materials.

The electoral commission irregularly paid Sh50.5 million to a company that was not registered to transport election materials in the March 4, 2013 general election.

The Auditor-General’s report for the financial year 2014/15 and records from the Registrar of Companies show that the firm, Alhamdul, was registered on September 12, 2014, a year and six months after the elections.

In an effort to defeat the audit trail, the report claims that the Independent Electoral and Boundaries Commission (IEBC) accepted the irregular request through unreferenced letter of October 13, 2014.

In the letter, Alhamdul argued that payments due to another company previously contracted by the commission should be paid to its account.

When he appeared before the Public Accounts Committee (PAC) of the National Assembly, IEBC Chief Executive Ezra Chiloba said that the payment to Alhamdul Company was made upon a request by one Mr Abdullahi Yussuf Farah.

TRANSPORT COST
Mr Farah is listed as a director and proprietor of Alhamdah Hardware.

“The company was among the businesses lawfully awarded the contract for the supply of transport services for the general election,” Mr Chiloba said as he blamed his predecessor, Mr James Oswago, saying that the irregular payment was made in 2014.

Mr Chiloba was appointed to the commission in 2015.

He indicated that Mr Farah swore an affidavit indicating that he was the owner of Alhamdul Company and instructed the commission to pay the outstanding bill to the new company. 

Alhamdul and another company, Rural Distribution Enterprise Limited, are among the four companies that pocketed between Sh390,000 to Sh460,000 a day to transport election materials from IEBC’s warehouse in industrial area to various parts of the country.

EXCESS PAYMENT
More baffling, the Auditor-General’s report noted that the commission “purported” that the company transported election materials using 27 vehicles.

“Verification of records maintained in 10 regions disclosed as stations of their service reveals that only five vehicles were used, and not the 27,” the report said.

This resulted in an excess payment of Sh42.7 million, the Auditor-General states.

In response to a draft audit report of March 8, 2016, the commission provided additional documents on 10 instead of 22 vehicles.

This, according to the Auditor-General, is an indication that the commission is unable to provide satisfactory explanation, information and assistance in writing.

Further verification of additional documents undertaken on April 1, 2016 indicates that the commission “noted” the damning anomalies regarding the ferrying of materials through a letter of June 6, 2016.

VEHICLE
The information contained on counter requisition and Issue Voucher, S11 Number 0003776, in support of the use of vehicle registration number KBR 829S at Kakamega region, has not been signed by the requisitioning, issuing and receiving officers.

Designations of responsible officers and date of transactions are not indicated on the submitted S11s.

It is also noted that S11 number 0003776 is not among the issue notes maintained among records at Kakamega region and verified during audit inspection in February 2016. 

Interestingly, information contained in counter requisition and Issue Voucher, S11 Number 0004221, purports that vehicle registration number KAQ 706Z was in Nakuru region while at the same time it was working in Teso North/South through another S 11 number 5035244 whose records appear to have been altered.

An examination of counter requisition and Issue Voucher, S11 Number 0003612 shows that vehicle registration number KAU 143Y was working at Nakuru region.

But the same vehicle is purported to have been working in Isiolo North/South at the same time.

DISTRIBUTION
Further, the commission purports through Issue Voucher, S11 Number 0004236 that vehicle registration No. KBR 624H was working in Nakuru.

Verification of field records during the month of February 2016 shows that the vehicle was not used in the region during election. 

Mr Chiloba, who found it hard to explain the irregularities, said the commission acknowledges that there was confusion and missing information during the distribution of the materials.