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Audit in funds amid delays in actualising project  launched in 2017 to upgrade smart card driving licences

Latest report by the Auditor-General discloses troubling findings regarding the financial and operational status of the National Transport and Safety Authority (NTSA).

Covering the financial year ending June 30, 2023, the audit uncovered a series of issues including significant outstanding debts, poor fund management, and notable weaknesses in the newly implemented Transport Information Management System (TIMS).

In the audit, the Auditor General Nancy Gathungu reported that NTSA failed to enforce the use of smart driving licenses, leading to substantial financial losses to the taxpayer. While the supplier delivered 4,042,050 smart cards, 2,562,874 cards remains unused, valued at Sh788.85 million.

The audit reveals a Sh1.2 billion discrepancy in funds amid delays in actualising the project which was launched in 2017 targeting five million smart card driving licenses, in an initiative that has since lagged behind schedule.

Suspect contract arrangements

Other issues in NTSA’s expenditures and contract management were also unveiled, for instance, NTSA paying some Sh45.1 million for the maintenance of the smart driving license software through the National Bank of Kenya.

The deal, which began on November 1, 2021, was set for a one-year term, requiring renewal by October 31, 2022. However, the Auditor General found no evidence that the terms were agreed upon with the vendor or that the contract was formally renewed, despite services continuing to be provided.

The Auditor General’s also audit revealed that NTSA has accrued outstanding debts totalling Sh557.8 million which includes Sh96.3 million owed to its em

hen the government is increasingly being put on the spot by the taxpayers, the role of the Auditor General’s office in finding and exposing critical financial and operational shortcomings at NTSA stand out..

  Addressing these issues promptly will be crucial for the authority to ensure compliance, financial stability,and the effective functioning of its systems

Eductions to a financing company.

Further, the report reveals unresolved obligations such as death benefits and last respects payments to the families of deceased staff, amounting to Sh9,454,984.

Unresolved obligations

The report says that these liabilities, “included in the amount of Sh11,659,917 are staff deductions owed to a financing company offering credit facilities to staff, amounting to Sh2,204,933, and death benefits and last respects owed to staff and their families totalling Sh9,454,984 that have been outstanding for a long time.”

The report highlighted significant weaknesses in the implementation of TIMS, which was launched in March 2023. According to the Auditor General, the system suffers from several limitations, including inadequate revenue reporting, an inability to generate comprehensive reports, and restricted access rights for users.

These issues undermine the accuracy of reported revenues from licenses, fees, and permits, which totalled Sh1,035,100,262, and sales of goods amounting to Sh1,206,901,756 as noted in the financial statements.

No exit arranegemnt in deals

Moreover, the Auditor General noted that NTSA’s management did not document the exit arrangement with the previous TIMS service provider. This oversight could lead to unverified license payments and maintenance costs during the data migration process. Consequently, the audit was unable to confirm the value for money spent on the project, which totalled Sh186.5 million.

The report also pointed out that NTSA users in the licensing and motor vehicle registration departments have restricted access levels, limiting their ability to generate detailed reports.

Only the Database Administrator has the capability to produce detailed reports, further complicating data management and other complicating data management and transparency.