Auditor faults KICC for lack of accountability

Auditor General Nancy Gathungu has fingered the Kenyatta International Convention Centre (KICC) management over its failure to account for millions of shillings spent on various projects.

In her report for the year ending June 30, 2020, Gathungu raised concerns over long outstanding debts, issues surrounding tenancy agreements, unsupported work in progress, double payments, queries over procurement of parking slots as well as unsupported expenditure on contracted services.

In the report tabled at the National Assembly by leader of Majority Kimani Ichung’wah a week ago, Gathungu said she was not in a position to verify whether there was value for money for some of the projects.

With respect to parking slots for the African Caribbean and Pacific (ACP) Summit of Heads of State and government charges which KICC paid Sh2.4 million to a local firm for the service with the charges being 600 slots per day for six days, Gathungu regretted that no register or records was provided to confirm the clients who parked during the six-day event.

Further she noted that another amount of Sh1.98 million which was also paid for parking slots for International Conference on Population and Development (ICPD) function held from November 12 to November 14, 2019, the Local Service Order (LSO) was dated November 7, 2019 while the invoice had been issued before the function commenced.

Procurement plan

According to her, despite the slots being offered, the expenditure items were not provided for in the procurement plan and the contract for the ICPD function adding that the procurement department was not involved in the procurement process.

“Under the circumstances, the accuracy and propriety of the expenditure incurred on parking slots totaling to Sh4.6 million could not be confirmed,” she said.

On double payment, she said she could not confirm the recoverability of Sh386,784 that was on May 7, 2020 paid to a country club for the provision of catering services as it is doubtful.

She regretted that another resort club on May 25, 2019 also paid an equivalent of the said money for the same service that had been offered by the country club.

“The double payment was noted and the resort club requested to refund the amount paid which was declined because the centre owed the Resort Club. Under the circumstances, recovery of Sh386,784 double payment is doubtful and the expenditure for the year is also overstated by the same amount,” she said.

Lease agreement

On tenancy agreement she regretted that it would be impossible to recover Sh36 million accrued from the occupation of offices at the 18th floor of the centre by the private secretary to the third President (Mwai Kibaki) from July 1, 2013 to July 1, 2016 as no lease agreement was provided for audit review.

According to her, recoverability of the debts is doubtful, as it was not possible to confirm that the trade and other receivables as at June 30 were fairly stated.

On unsupported expenditure on contracted services, Gathungu regretted that despite records showing that KICC pays the National Youth Service (NYS) Sh3.1 million monthly for the provision of security service, the center was not able to provide the contractual obligations of both parties for audit.

“Under the circumstances, the accuracy and propriety of the expenditures incurred on provision of security services from NYS could not be confirmed,” she added.

On unsupported expenditures, she noted that he cannot confirm the accuracy of Sh1.1 billion in respect of capital work in progress.

According to her, a special audit report from her office on World Trade Organisation (WTO) projects and pending bills at KICC carried out in 2018 recommended payments to various contractors amounting to Sh386.9 million out of the initial Sh1 billion as the remaining claims from suppliers, contractors and service providers were not recommend for payment due to lack of legitimacy of the law and also lack of adequate valid supporting documents.

Progress schedule

However she regretted that a review of the work in progress schedule revealed that the corporation still reflects amounts totaling to Sh153 million instead of Sh74.2 million approved payment resulting in a variance of Sh78.8 million.

“Under the circumstances, the accuracy and fair statement of the work in progress balance of Sh1.1 billion as at 30 June could not be confirmed,” she said.

On outstanding dates she regretted that Sh742.2 million or 90 percent has been outstanding for over one year and the bulk of it is owed by various government ministries and departments with the National Assembly owing them Sh47.3 million which has been outstanding for a considerably long period of time.

Further she noted that the defunct government ministries and department owe a balance of Sh60.6 million of the debts.