[SIZE=5]NYS loses Sh250m on food deals, cost inflated to double market price[/SIZE]
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on guard: National Youth Service cadets cordon off Uhuru Park during the Saba Saba rally on July 7, 2014. There are unconfirmed reports that NYS warehouses are overflowing with food.
BY DAVID OKWEMBA
June 25, 2015
MORE financial mess has emerged at the National Youth Service. The price for food supplies to NYS this year appears to have been inflated by up to 100 percent.
The NYS spent Sh558,886,000 on foodstuffs between January and June this year, according to IFMIS printouts made available to the Star.
On average the prices paid for food supplies appear to be double the market rates, creating a potential loss of over Sh250 million for the NYS.
The integrated Financial Management Information System report for NYS shows tender prices way above their retail prices in the open market.
For instance, NYS paid Sh7,490 for a 50kg bag of sugar whereas the wholesale price in Nairobi today is between Sh4,000 to sh4,500.
The NYS bought thousands of 90kg bags of green grams for Sh24,950 yet wholesale shops are selling them for Sh13,000.
NYS bought thousands of bales ( 2 x 12kg) of maize flour for Sh1900 while Nakumatt supermarket sells them for between Sh1,100 and 1,230.
Huge quantities of powder milk were procured at sh21,500 for a 25kg bag yet Kenya Co-operative Creameries, a government parastatal, sells the same product for Sh16,500.
For a 50kg bag of rice, NYS paid Sh7,500 yet it was going for between Sh3,000 and 4,000 yesterday in Nairobi shops.
NYS bought 10,000 90kg bags of beans for Sh85 million in March only for the price to drop to Sh2,750 ten days later.
Huge quantities of foodstuffs were supplied to NYS in February and March. There are unconfirmed reports that NYS warehouses are overflowing with food.
The IFMIS report indicates that Alpha Mercantile Limited supplied 4000 bags of sugar on February 10 worth Sh29.96 million. Bizarrely the IFMIS system was used to issue the four orders with intervals of just a few seconds.
Later in February Fresco International was given orders for powder milk, green grams and maize flour worth Sh124 million.
On February 20, Bora Global Limited is listed by IFMIS as having supplied green grams, maize meal flour and powder milk amounting to Sh167 million.
The IFMIS instructions were issued for Bora at 7.40 pm, contrary to government regulations that IFMIS should only be operated during normal working hours between 8am and 5pm.
Things of Desire Limited supplied 11,000 bags of rice for Sh82.5 million. Again the four entries in IFMIS were made at 7.40pm.
Fahaza Limited received an order for beans and machines worth Sh143 million on March 10 at 6.15pm.
A further Sh650 million was spent on construction equipment, machinery, fish tanks, drills, pumps, meters, lathes, grinders, water tanks, ovens, hot plates, and engines.
It was not possible for the Star to do price comparisons on these items as the models and technical specification were not available on then IFMIS print-outs.
Other firms on the IFMIS list for NYS this year include Apex Projects ( Sh49million), Baltimore General Supplies ( Sh37.5 million), Kenirie Limited ( Sh46.9 million), Selumna Limited ( Sh29 million) and Dama Services ( Sh28 million)
A Turkish firm on Mombasa road in Nairobi, Tunasco Insaat Taahut Turizm, received two orders worth Sh176 million. The clothing supplies included 1,500 military uniforms, 10,500 police uniforms and 12,000 mens shirts. Earlier this year Tunasco was involved in a controversy at Dubai Bank after one shareholder received a guarantee of Sh51 million for the sale of his shares which the bank did not honour. The former Dubai Bank general manager has now left the country.
The IFMIS report from January 5 to June 16 this year shows that NYS procured foodstuff, machinery and other items totalling Sh1.2 billion.
Government introduced the IFMIS system in 2011 when Anne Waiguru, today the Devolution CS in charge of NYS, was the project manager for the new accounting system.
On June 5, Waiguru wrote to the CID asking them to investigate the NYS payments saying that she suspected that over Sh800 million payments were inflated or fraudulent.