By Reporter
Ahead of this month’s Ugunja parliamentary by-election, the Auditor General Report has come back to haunt the ODM candidate Moses Okoth Omondi, who is the immediate former constituency manager.
Odhiambo had served under the Energy Cabinet secretary Opiyo Wandayi before he was appointed to the cabinet in the broad based government arrangement between president William Ruti and former Prime Minister, the late Raila Odinga.
In the 2022-2023 audit report flags several unprocedural practices including delayed project implementation, unprocedural procurement and violation of the law.
Unexplained Variance in Receipts
The statement of receipts and payments reflects total receipts amounting to Kshs.175,777,758. Review of the Fund’s bank statements and computation of all the receipts to the Fund during the year revealed a total of Kshs.180,277,758, resulting in unexplained variance of Kshs.4,500,000. In this circumstance, the accuracy and completeness of receipts totaling Kshs.175,777,758 could not be confirmed.
Unreconciled PMC Bank Balances
The financial statements reflects Project Management Committees (PMC) accounts balances amounting to Kshs.22,325,620 but bank reconciliation statements for the accounts and other related supporting documents such as bank statements and cashbooks were not provided for audit review contrary to Regulation 90(1) of the Public Finance Management (National Government) Regulations, 2015.
Returns from the PMCs to the constituency committee were not provided for audit review hence, it was not confirmed whether the PMCs accounted for funds transferred to the respective accounts as required in the National Government Constituency Development Fund Regulations, 2016.
In the circumstances, the accuracy and completeness of Project Management Committee account balances totaling Kshs.22,325,620 could not be confirmed.
Un-procedural Procurement of Sports Items
A supplier was contracted to supply sports items for tournaments held on 12 March, 2022 and 21 March, 2022 for Kshs.386,000 and Kshs.524,400 respectively. The Management during procurement of the items issued quotations to only two suppliers contrary to Section 106(2)(b) of the Public Procurement and Asset Disposal Act, 2015 which provides that quotations should be issued to as many persons as necessary to ensure effective competition and shall be given to at least three persons.
Further, the supplier was awarded the second supply contract at a price of Kshs.524,400 which was higher compared to the other bidder who had quoted Kshs,521,600 for the same items.
Irregular Award of Contract
A local construction company was awarded a contract for construction of ablution block at Dr. Ida Odinga Girls Secondary School at a contract price of Kshs.1,938,637.
According to the evaluation committee report of 1 January, 2022, two bidders were found responsive in technical evaluation by both scoring thirty (30) marks and were subjected to financial evaluation, scoring 19.2 and 20 marks respectively.
The tender documents indicated that the highest score was to be determined from combining technical and financial scores, which would have resulted in a combined score of 49.2 and 50 for the two bidders respectively. However, the evaluation committee recommended awarding the bidder with a lower combined score of 49.2. This effectively led to the Fund incurring an extra cost of Kshs.75,677 since the awarded bidder had quoted Kshs.1,862,960 compared to that of Kshs.1,787,283 by the higher scorer.
In addition, the Project Management Committee further directly engaged the contracted company for further works costing Kshs.324,914 to complete the ablution block without justification.
Irregular Procurement of Renovation works
The Management awarded a contract to a local contractor for renovation of three classrooms at Sirandumb Primary School under emergency fund. Review of the project file revealed that the contractor was not the lowest evaluated bidder in the combined technical and financial score according to the evaluation committee report.
The three evaluated bidders had registered a combined score of 18, 40, and 39.87 respectively.
However, the bidder who registered a score of 39.87 was awarded the contract under unclear circumstances. In addition, the contract period was ninety (90) days but the contractor had taken more than six (6) months with no extension to the contract period and the works were still incomplete as at the time of audit in March, 2023.
In the circumstances, Management was in breach of the law.
Un-procedural change of Project Scope
The statement of receipts and payments reflects transfers to other Government units amounting to Kshs.76,182,407. As disclosed in Note 6 to the financial statements, the transfers included an amount of Kshs.39,821,286 to secondary schools.
Review of the beneficiaries of the funds revealed that Kshs.6,000,000 and Kshs.2,000,000 disbursed to Dr. Ida Odinga Girls Secondary School, Asango for construction of twenty (20) cubicle rooms bungalow dormitory and construction of 10-room capacity ablution block with five rooms for people living with disabilities (PWD) in accordance with the approved work plan and procurement plan.
Physical verification of the projects revealed change of the scope of the projects whereby the school ablution block done was changed to 8-room capacity ablution block with no rooms for the PWD. Further, the school dormitory contained only seven (7) cubicles instead of the twenty (20) cubicles room capacity initially planned for and approved by the board.
The change of scope was not supported by requisite approvals, design changes and price variation and adjustments. In the circumstances, the value for money for the project could not be confirmed and the accruing benefits to the school were yet to be realized.
Invalid Contract
During the year under review, Management engaged a contractor for construction of two classrooms at Murumba Nyiro Primary School at a contract price of Kshs.1,949,496. Physical verification of the works at the school in March, 2023 revealed the contractor was still on site and the project was ongoing despite the contract period having elapsed in September, 2022. Although the contractor had sought an extension of one month from 24 September, 2022 and which was approved by the Project Management Committee, no other extension was sought after the lapse of the one-month extension. The contractor was therefore working without a valid contract. In the circumstances, Management was in breach of law and delay in completion of the project denied the community accruing benefits from the project
Expenditure above Procurement Threshold
The statement of receipts and payments reflects expenditure on use of goods and services amounting to Kshs.11,087,736. Review of the payment vouchers and supporting documents revealed expenditure of Kshs.1,682,970 being payment for supplies of food items, computer, office supply, stationery and electrical items which were purchased in cash using standing import. However, the expenditures exceeded the approved limit of Kshs.50,000 allowed under the Public Procurement and Assets Disposal Act, 2015 for use of cash purchases and ought to have been procured competitively.
In the circumstances, the regularity for expenditure of Kshs.1,682,970 on use of goods and services could not be confirmed.
Delays in Implementation of Projects
Review of the projects’ implementation status report for Ugunja Constituency as at 30 June, 2022 revealed that Management planned to implement fifty-three (53) projects and allocated a total of Kshs.137,088,879 in the year under review.
However, forty-nine (49) projects with an allocation of Kshs.125,008,879 or 91% of the planned projects had been completed, while four (4) projects with allocation of Kshs.12,000,000 or 9% had not started or were still ongoing as at the time of audit in March, 2023.
In the circumstances, the residents of Ugunja Constituency were denied the benefits associated with the completed projects. The audit was conducted in accordance with ISSAI 4000.
