Sh32, 000 for a luxury
car
By Roselyne Obala
Published: Aug 15th 2018 at 21:13,
Updated: August 15th 2018 at 21:13
Government Vehicles, cars with the national
flags parked. [Photo: Standard]
The Ministry of Labour sold a Volkswagen
Passat for Sh32,000, according to an exposé
by the Auditor General detailing possible loss
of millions of taxpayers’ money.
Auditor General Edward Ouko has cited
under-valuation in the sale of 17 GK
vehicles, pending bills and ghost projects
initiated by the ministry under former
Cabinet Secretary Phyllis Kandie.
“Some of the top-of-the-range vehicles
were sold for as low as Sh32,000 with no
visible damage and had a reserve price of
Sh30,000, attracting a bid price of
Sh100,000, but still ended up fetching only
Sh32,000 and from a different bidder,”
said Ouko.
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He went on: “GKA 253E, a Nissan patrol, had
a reserve price of Sh100,000 and attracted
a bid price of Sh1.8 million but only
Sh130,000 was receipted.”
New vehicles
He questioned why fairly new vehicles were
disposed of, leaving old and grounded cars
in the various yards of the ministry.
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As a result, Ouko has called for the
punishment of Government officials involved
in the racket, the auctioneering firm
contracted and the parties that colluded
leading to the loss of public funds and
assets.
“It was not clear how the auctioneer was
procured and awarded due to various
discrepancies in correspondences between the
auctioneer and the head of procurement at
the ministry,” he said.
More shocking is Ouko’s query on the Sh3.3
billion district suspense balance, where no
schedules have been provided by the ministry
to support it and that the management has
not explained the challenges faced in
resolving the matter.
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The report tabled in the House yesterday by
National Assembly Majority Leader Aden
Duale (Garissa Township) was for the year
ended June 31, 2017.
No details
The report shows details of the auction were
also not produced for audit verification.
Mr Ouko has also detected massive financial
improprieties at the ministry, running into
hundreds of millions of shillings.
In pending bills, Ouko noted that of Sh36
million, only Sh10 million had been paid,
leaving an outstanding balance of Sh26
million.
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The ministry is censured for malpractices
that included stalled construction of the
Sh442.7 million National Employment
Promotion Centre in Kabete, Kiambu, and
irregular payment of Sh5 million for
manpower consultancy services.
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