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SUMMARY OF FINDINGS FROM THE TASK-FORCE ON COUNTY PENDING BILLS:
H.E

The mandate of this Task-force was to establish the genuine County pending bills;review the probity of the legal procurement procedures in procuring goods, works and services in the County; establish and determine the status of procuring goods, works and services awarded to contractors and to make recommendation and present a comprehensive report on the outcome of the Task Force with regard to the exercise.

STATISTICAL SUMMARY;

The funds carried forward from financial year 2016/17 to 2017/18 by the County Government of Nandi were Ksh. 759,114,471.00 as per the annexed Certificate of bank balance dated 24th July 2017. This is made of Ksh. 142,000,000.00 being conditional grants (Road Maintenance Levy Fund (RMLF) and Tea Levy/Advalorem) andthe balance of Ksh 617,114,471 being the amount available to settle properly audited pending bills.

Bills submitted by the public amounted to Ksh. 1,324,620, 581.39 representing 656 projects. The same has been analysed by the task-force and broken down as follows:

I) Double claims 210,084,425(66 projects)

II) Claims for non-existing projects 21,201,922(6 projects)

III) Unsatisfactory claims 676,848,014(330 projects)

IV) Claims that need further verification 416,486,220 (254 projects)

TOTAL 1,324,620,581(656 projects)

FINDINGS:

The following companies had been paid yet they made claims amounting to Kshs.210,084,425 which becomes a subject of forensic investigation:

1. Claim from the Department of Health & Sanitation- Supply of Drugs- Amount Claimed: 56,766,222.00 Amount Paid:56,766,222.00

2. Talai Logistics Co. Ltd.- Renovation of OPD Block at Kapsamoite Dispensary-2015/2016- Amount Claimed: 336,150 Amount Paid:308,678.45

3. Sankim Co. Ltd- Construction of Maternity Block at Sigot Dispensary-2015/2016- Amount Claimed: 3,909,650.00 Amount Paid:1,806,607.75

4. Juvice Agencies Ltd- Fencing, Tree Planting and Gate at the Kapsabet Dumpsite-2015/2016- Amount Claimed: 2,476,200.00 Amount Paid:2,273,834.70

5. Juvice Agencies Ltd- Construction of Kamamut Dispensary-2015/2016- Amount Claimed: 2,890,850.00 Amount Paid:2,654,597.80

6. Susuko Co Ltd- Completion works- Kosoiywo Dispensary-2015/2016- Amount Claimed: 897,420.00 Amount Paid:824,079.10

7. Claim from the Department of Agriculture, Livestock and Fisheries Development- Renovation of Kabilo Cattle Dip-2014/2015- Amount Claimed: 135,660 Amount Paid:124,574.30

8. Bekech Enterprises Ltd (Claim by the Department of Education)- Mogomben VTC-2015/2016- Amount Claimed: 746,682.50 Amount Paid:2,742,642.05

9. Makiki Agencies Ltd Kurgung Primary ECD-2015/2016 843,510 Amount Paid:774,514.85

10. Juvice Agencies Ltd (Claim by the Department of Education) Twin Workshop Sigilai VTC-2015/2016 Amount Claimed: 741,558.25 Amount Paid:2,723,817.40;642,788.50

11. Tadco Co. Ltd (Claim by the Department of Education) Mbogo Valley ECD-2014/2015- Amount Claimed: 803,905

Amount Paid:799,735.65

Paid but project incomplete;

12. Ndonyongaria Investments Ltd (Claim by the Department of Education)- Kipkongorwo ECD Amount Claimed: 449,342 Amount Paid:715,411.25

13.Roma Ventures Ltd- Kapsoito Primary ECD- Paid but project incomplete 697,852.90

14. Dodak Holdings Ltd- Kabore VTC- Amount Claimed: 2,995,005 Amount Paid:2,227,695.90

15. Juvice Agencies Ltd- Koimet W/ Project (Supply of Pipes etc.)-2016/2017- Amount Claimed:699,700.00 Amount Paid:663,508

16. Zamje Holdings Ltd- Sean W/Project (supply of pipes)-2016/2017- Amount Claimed:1,128,500.00 Amount Paid:664,172

17. Makiki Agencies Ltd- Kapkekenda Water Project-2016/2017 Amount Claimed:193,200.00 Amount Paid:183,206.90

18. Makiki Agencies Ltd- Labuiywet Water Project-2016/2017 Amount Claimed:2,000,850 Amount Paid:1,896,551.70

19. Roma Ventures Trading Co. Ltd- Milimani/Kapkeben W/Project (supply of pipes etc)-2016/2017 Amount Claimed:816,000.00 Amount Paid:773,793.10

20. Sekecha Co Ltd- Chebarus Water Project-2015/2016 Amount Claimed:969,150.00 Amount Paid:886,943.40

21. Marop Constructions Co. Ltd- Kombe Water Project-2015/2016- Amount Claimed:1,963,550.00 Amount Paid:1,963,550.00

22. Tamaring Engineering Co. Ltd Siwo Water Project-2015/2016 Amount Claimed:2,363,550.00 Amount Paid:2,807,054.55

23. Juvice Agencies Ltd- Milimani Water Project- Amount Claimed:2,132,260.00 Amount Paid:2,417,049

24. Juvice Agencies Ltd(claimed by the Department of Lands) Litei Water Project-2015/2016 Amount Claimed:2,575,650 Amount Paid:2,365,157.20

25. Juvice Agencies Ltd (claimed by the Department of Lands) Mogoiywo Water Project-2016/2017 Amount Claimed:163,000 Amount Paid:149,678.95

26. Jadina International Co. Ltd- Improvement of Cheptingwich-Bonjoge Rd-2014/2015 Amount Calimed:1,736,350 Amount Paid:1,594,448.30

27. Emmlel Agencies Ltd- Kambi-Legemet Rd-2014/2015 Amount Claimed:1,801,373 Amount Paid:1,654,160.10

28. Bezu Co. Ltd- Emergency works for Kapkirima-Tupcho Rd-2014/2015 Amount Claimed:3,771,287 Amount Paid:1,849,141.30

29. Barega Agencies Ltd Kipngoror-Koiban Rd Amount Claimed:2,474,744 Amount Paid:169,891.90

SUB TOTAL 1 135,200,647.50

AMOUNTS PAID YET CLAIMED BY DIFFERENT COMPANIES

CLAIMANT- PROJECT- AMOUNT- COMPANIES WHO RECEIVED THE PAYMENT

30. Romarc Ltd (Payments made to Toiyoi Ent. Ltd) Rwando- Ngerek Rd-2014/2015 Claimed :3,397,582.00, Kshs. 3,999,200 paid to Toiyoi Ent. Ltd

31. Emlel Services Ltd (Payments made to Emmlel Agencies Ltd) Kapkabai-Kapinderem Rd-2014/2015 1,687,336, Kshs. 1,535,475.70 Paid to Emmlel Agencies Ltd

32. Cross Roads Enterprises Ltd (Claimed by the Department of Lands)-Lelwak A Water Project-2016/2017 Claimed;3,979,350.00, KShs. 6,302, 981 paid to Meibrimo Investment Ltd.

33. House Hano Investment Ltd- Chepkoiyo Water Project-2015/2016 Caimed; 3,825,332.00

Kshs. 1,108,818.10 paid to Bimons General Investment

34. Ultimate Investments Ltd (Claimed by the Department of Lands) Kamobon Water Project 4,987,640.00, Ksh.1,546,103.80 paid to Pepeh Co. Ltd

35. Petmu Construction Co Ltd (Claimed by the Department of Lands) Surungai Water Project Amount Claimed: 2,935,625 Ksh.2,144,111.00 paid to Grane Co. Ltd

36. Cherish Gen Cont. Ltd (Claimed by the Department of Lands)- Kapsisiywo Water Project 1,870,976, Ksh.2,426,084.85 paid to Himaki General Contractors Ltd & Ksh. 375,875.00 to Denamrk Co. Ltd

37. Cross Roads Ent. Ltd (Claimed by the Department of Lands)- Kaptilol Water Project 4,196,640, Ksh.1,152,206.65 paid to Jesmag Investment Ltd & Ksh.4,560,952.00 paid to Dunkosh Ent. Ltd

38. Biwel Investment Ltd Kaptabongen Water Project 1,100,000, Ksh.1,877,586.20 paid to Joinstar Co. Ltd & Ksh. 1,726,358.60 to Femji Ent. Ltd

39. Errad Africa Ltd (Payments made to Bridejoy Cons. Co. Ltd) Kibungu Buying Centre-Old Koibem Forest Rd-Chepkumia Ward-2014/2015 3,910,313, Kshs. 3,839,836 paid to Bridejoy Cons. Co. Ltd

40. Amro Solutions Ltd- Renovations works Kapsabet Police Commandant’s residence-Kapsabet-2014/2015 Kshs. 1,511,480, Kshs. 2,942,679.30 Paid to Jochkem Co.

SUB TOTAL 2: 30,003,591.30 30,003,591.30

Irregular Double Payments with Unclear Descriptions

1. Tamaring Engineering Co. Ltd- Siwo Water Project-2015/2016 Numerous payments relating to Siwo W/Project- Amount Claimed: 2,363,550.00 Amount Paid:2,807,054.55

2. Lightwave Telecoms Ltd- Repair and replacement of worn out electrical appliances at the County Headquarters- Amount Claimed: 2,345,040.00 Amount Paid:1,025,024

3.Kasemat General Supplies (Claimed by the Executive Department)- Revenue Gadgets- Amount Claimed: 3,508,800 Amount Paid:3,508,620.70

4. Roma Ventures Ltd- Sewage Lagoons-Kiropket- Amount Claimed: 4,920,300.00 Amount Paid:3,364,000.00

-Numerous payments on the Sewage Lagoons

5. M/S Digmark Company Ltd- Tangaratwet Primary ECD-2014/2015 Amount Claimed;430,450 Amount Paid:293,173.00;282,375.00; 282,375.00;

-Audit be carried out to establish the correct amount due for the claimant

6. Reeve Agencies Ltd- Koibem VTC-2015/2016 PV No. 44180900- Amount Claimed: 3,120,560.00 Amount Paid:2,865,755.30

7. Bwaste Enterprises Ltd- Kiptuiya Spring Protections W/Project-2015/2016 (1,877,586.20)- Paid to Joinstar Co. Ltd

2,132,000.00 -There’s need to harmonize works done on Kiptuiya and Kaptabongen Spring protection water projects since Kaptabongen Spring protections were paid to Joinstar Co. Ltd (Kshs. 1,877,586) and Femji Ent. Ltd (Kshs. 1,726.358) and the claim is made by Bwaste Ent. Ltd.

8. May Fair Vent. Ltd (Claimed by the Department of Lands) Taboiyat Water Project-2016/2017- Amount Claimed: 4,985,700 Amount Paid:5,527,886.00

9. Emmlel Agencies Ltd- Nandi bears-Koitalel Samoei University-2014/2015 1,009,007 -The company has received numerous payments for an un-named road projects; an audit is recommended

10. Ulivyo Agencies Ltd- Lessos Technical-Kapkorio Vented Drift Rd-2014/2015 Amount Claimed: 2,680,122 Amount Paid:2,196,223.30

-Payment without description.

11. Pwani Chemeli International Co. Ltd- Lessos-Lolduga-2014/2015 Amount Claimed: 3,548,536 -The Contractor has been paid Ksh. 731,804.00 for the named project & another Kshs. 1,611,901 on an un-named road project.

12. Vineto Ent. Ltd Repair of Plant Equipment Spares 1,002,000 -The Company has been paid Kshs. 3,554,175.20 for an un-named road project as per the Dev. CB of 2016/2017-T/No. 4732; an audit is recommended

13. Chebolol Holdings Ltd- Kiplolok Bridge 4,633,538 -The Company has been paid Kshs. 3,103,700.80 for an un-named road project as per the Dev. CB of 2016/2017-T/No. 5296; and another Kshs. 3,074,639 for an un-named road project too; hence, an audit is recommended

14. Bechem Cons. Ltd- Kapnyeberai-Kapkagaon Rd-2014/2015 4,798,920 -The Company has been paid Kshs. 1,752,386.25 for an un-named road project as per the Dev. CB of 2016/2017-T/No. 4666; an audit is recommended

15.Bechem Cons. Ltd- Kaptendon-Tulon Rd-2014/2015 4,904,480 -The Company has been paid Kshs. 1,752,386.25 for an un-named road project as per the Dev. CB of 2016/2017-T/No. 4666; an audit is recommended

16.Rift Services Co. Ltd- Lelmokwo-Mlango Rd-2014/2015 Numerous payments with incomplete descriptions 4,571,730 -The Company has received numerous payments as noted in the Dev. CB of 2016/2017 for un-named road projects; hence an audit is recommended.

17.Rift Services Co. Ltd- Emdin-Kapnyeberai Rd-2014/2015 4,698,720 -The Company has received numerous payments as noted in the Dev. CB of 2016/2017 for un-named road projects; hence an audit is recommended.

18.Lydro Cons. Ltd- Koisegem Pry-Kapkirwa Hills-2014/2015 3,683,580 -The Company has been paid Kshs. 1,460,058.60 for an un-named road project as per the Dev. CB of 2016/2017-T/No. 5110; an audit is recommended

19.Jainocat Services (K) Ltd- Ng’aniat-Katanin Rd-2014/2015 2,357,584 -The Company has been paid Kshs. 2,082,510.05 for an un-named road project as per the Dev. CB of 2016/2017-T/No. 4616; an audit is recommended

PAYMENTS WITHOUT CLEAR DESCRIPTIONS (SUB TOTAL 3) 44,879,992.00

GRAND TOTAL( DOUBLE CLAIMS) 210,084,452.00

2. A total claim of Kshs.21,201,922 for 6 projects were submitted by companies but there was no evidence of work done on the ground. These are:

1.Chebsuit/Chebosit Water Project (FY 2015/2016) Willian Enterprises Ltd Kshs. 2,530,250

2.Kimogoch Water Project (FY 2015/2016) Brimel Co. Ltd. Kshs. 5, 262, 574/=

3.Proposed Maternity Block at the Meteitei Hospital Cherma Holdings Ltd. Kshs. 4, 700, 000/=

4.Tegeiyat Water Project (FY 2015/2016) Milestar Enterprises Ltd. Ksh. 1,345,000/=

5.Chepkoiyo Water Project (FY 2015/2016) House Hano Investment Ltd. Ksh 3,825,332.00

6. Rodding machine, rods and aluminium plugs Juvice Agencies Ltd Kshs.3, 538,766

TOTAL= 21,201,922

3. A total of Ksh. 676,848,014 in claims were made by companies yet there was no proper documentation. The following documentation were not produced by contractors:

(a) Letter of award

(b) Letter of acceptance

© Commencement of works

(d) Statement of account in case of civil works

(e) Joint measurement in case of roads

A detailed status of documentation per project per contractor is captured on the report.

4. A number of companies produced proper documents and there was evidence of work done, though not to the expected standard. Examples of such projects include:

1. Tadco Co. Ltd (Claim by the Department of Education) Mbogo Valley ECD-2014/2015 Amount Calimed: 803,905, Kshs. 799,735.65 Paid but project incomplete

2.M/S Humdel Company Limited Kiplolok Primary ECD-2014/2015 Amount Claimed: 490,149 -The claim meets the legal threshold but subject to making good the defects.

3. Jadina international co. ltd Sang’alo VTC-2015/2016 Amount Claimed: 737,317.50 -The Department to make URGENT visit to salvage the structure and thereafter make a decision on the way forward

-No further payment recommended

4. Twin Workshop Serem VTC-2015/2016 Birmark Ltd Amount Claimed:2,752,958.40

– The Department to make an URGENT visit to the site otherwise the Task-force recommends complete demolition of the project or defects be corrected (if possible) under strict supervision of an engineer. – The Department to make an URGENT visit to the site otherwise the Task-force recommends complete demolition of the project or defects be corrected (if possible) under strict supervision of an engineer.

5. Kamenjeiywa Primary ECD-2014/2015 M/S Kongason Contractors And Supplies Ltd Amount Claimed:785,950 -The Department advised to be make an URGENT visit to the site and decide whether the contractor should be retained or discontinued from the project.

The following companies presented the same officers in the field during project inspection, which causes us to draw conclusions that the companies could be owned by the same person.

S/No. CONTRACTORS: NAME:AMOUNT: FREQUENCY

1. Juvice Agencies Ltd 26,563,072.00 (34)

2. Roma Ventures Co. Ltd 24,065,522.00 (19)

3. Emmlel Agencies Ltd 33,484,971.00 (19)

4.Makiki Agencies Ltd 18,437,931 (8)

5.Sochi gaa H/ware & Tools 9,065,748.90 (5)

Based on the foregoing, there is a likelihood that companies owned by the same person was awarded huge contracts irregularly. This is because it is practically impossible for one person to win a huge chunk of contracts in a competitive, transparent and equity focused procurement process. A procurement audit will help determine whether these companies were awarded contracts in a proper manner or not.

PROJECTS THAT REQUIRE ADVISORY SERVICES FROM THE TECHNICAL INSTITUTIONS.

There are three major capital projects (Kipchoge Keino Stadium, Nandi Hills Stadium and the Governor’s Office) where Taskforce was not able to establish their status. These are projects that need further investigations to ascertain their status, and therefore the Task-force recommends that the relevant agencies in the field of civil works e.g. National Construction Authority (NCA) and the Ministry of Sport, Culture and Arts be called upon to assess and advise accordingly.

QUESTIONABLE PAYMENTS THAT REQUIRE FORENSIC AUDIT:

Three projects namely Kamatargui Conservancy,Kapsabet Sewerage lagoons and Kombe Water Project had been paid up to Ksh10,113,591.60, Ksh. 14,619,731.85, and 17,803,276.00, respectively. Our analysis revealed that the payments were made for the same scope of works in various financial years as listed below:

1. KAMATARGUI CONSERVANCY

The company that was legitimately awarded the contract was Segecha Construction Limited but there was a payment made to another company, Luklel Constructors and Engineering Ltd as shown below:

DATE-COMPANY-PROJECT-AMOUNT PAID

12/11/2014; Luklel Constructors &Engineering Ltd.- Fencing Of Kamatargui Swamp 5,356,309.00

Segecha Construction- Fencing Of Kamatargui Swamp 4,757,282.60

Total= 10,113,591.60

2. KAPSABET SEWAGE LAGOONS

DATE-COMPANY-PROJECT-AMOUNT PAID

14/10/2015- Rotalink Eng Co. Ltd- Installation Of Sewage At Kapsabet- Kshs. 4,639,344.85

24/2/2015-Mitchell Investment- Sewage Pond At Kapsabet- Kshs. 2,975,864.00

24/2/2016- Roma Ventures Trading Co. Ltd- Sewage Logoon Kapsabet- Kshs. 3,364,000.00

17/03/2017- Segecha Construction & Engineering- Rehabilitation Of Sewerage Plant & Pond At Kapsabet- Kshs. 3,640,523.00

TOTAL=14,619,731.85

3. KOMBE WATER PROJECT

DATE-COMPANY-PROJECT- AMOUNT PAID

19/04/2017- Ultimate Investment Ltd-Supply Of Pipes And Fittings Of Kombe Water Project- Kshs. 3,783,146.55

17/11/2016- Rotalink Engineering Co. Ltd- Water Project- Extension Of Kombe Water Project – Kshs. 4,499,551.70

25/01/2017- Mayfair Ventures Ltd- Water Project-Supply Of Material -Kombe,Chepterit,N/Hills- Kshs. 2,517,453.30

23/9/2016- Marop Constructions Ltd- Kombe Water Project- Kshs. 1,963,550.00

30/3/16- Jadina International Co. Ltd- Construction Of Kombe Water Project- Kshs. 376,000.00

9/5/2015- Marop Construction Ltd- Supply & Delivery Of Pvc Pipes – Kombe Project – Kshs. 4,663,575.00

Total= Kshs. 17,803,276.55

STAFF CULPABILITY:

Staff are bound by principles and values of officers in public office, chapter 12 of the constitution on public finance management. Adherence to these values is mandatory and failure to comply leads to consequences that are provided by the same laws.

The following glaring omissions by staff render them culpable and liable for prosecution as provided for in the law:

a) Sharing of passwords with other unauthorized staffwhich amounts to professional negligence and an abetment of fraudulent activities. Passwords are instituted in order to provide checks and ensure that payments that are made are approved by different people to guarantee legitimacy. Password sharing means that one person can initiate a transaction and approve it single handed.

b) Failure, either by design or otherwise, by the responsible seniors (accounting officers) to adequately staff the finance function(especially payments) such that the same resulted instaff having to perform roles that typically would require different people for purposes of control measures;

c) Staff involved in examination, vote checking and approvals collectively facilitating double payments when they could clearly notice that the same had been presented for payment in a prior transaction. The purpose of the above three functions (Vote book control, examination and approval) is to ensure that only services and goods being presented for payment are legitimate and have never been paid for;

d) The chief officers across all departments are the recognized accounting officers in their respective departments and hence they are held individually and collectively accountable for any financial malpractice. Double payments, payments for services and goods not meeting the stipulated standards amounts to malpractice since the accounting officers should always ensure value for public money they are charged with the responsibility of administering.

e) The procurement officers deployed in each department have a role of ensuring that due process is followed in the procurement of any goods or services. The officers are mandated to bring to the attention of the relevant bodies(e.g. internal audit, EACC, County Assembly) any malpractice in the procurement process. Trained procurement officers know that documentation process is an important process in the procurement of goods and services since these form a basis of audit trail which always inevitably happen. The missing gaps in the procurement process renders all the staff in the procurement function individually and collectively culpable and hence action will be taken.

f) Various internal audit reports touching on the issues raised were evidently not acted on and the internal audit function was rendered irrelevant. Accordingly, the internal audit function is going to be strengthened under my supervision and I will require that the reports emanating from their reviews be acted upon to ensure that public money is safeguarded and the public derives value for money.

WAY FORWARD:

(a) A reshuffle of staff across the county functions, starting with the finance department, through a process of clear matching of skills, competence and integrity test to the task at hand,

(b) Issuance of definite contracts to all staff who have been working as casuals upon successfully going through the due process of interview. This is in a bid to ensure that staff can legitimately transact county business; casual staff cannot purport to transact in the name of the county. Public money requires that responsible people administer them, and the way to hold staff responsible is to bind them in a contract which is enforceable in law.

(c) Interdiction of the following staff who have been found to have abetted mismanagement of public funds:

Finance Department:

1. Henry Koech –Head of Budget(Currently on suspension)

2. Emmanuel Wanjala- Chief Finance Officer (Currently on suspension)

3. Katheline Jebor- Payments

4. Agik Otieno-Payments

5. Aaron Biwott- Payments

6. Wilson Sigei- Payments

Procurement:

7. Meshack Tankoi- Head of Supply Chain(Resigned)

8. Wilson Yebei-Procurement officer Health

9. Amos Bwambok- Procurement Officer in Transport and Infrastructure Department

10. Benard Kibiwott- Procurement Officer Devolution-Earlier he was in Trade and Investment Department

11. Julia Chepchirchir-Procurement Officer in Trade and Investments Department

12. Josiah Kitur- Procurement Officer in Youth and Sports Department

Other Details;

13. Henry Koech- Resigned as Acting Chief Officer Finance

The same staff will still be required to appear to provide explanations in an audit process which is meant to unearth further misappropriations which were not picked up in the process of pending bills verifications.

Once the entire state of misappropriation has been established for the period beginning 2013, a decisive action will be taken on the responsible officers.

Guidance is being sought from the Office of the Attorney General on the process of assets recovery from the concerned companies and staff, together with other disciplinary measures as shall be guided by him.

SUBMISSION TO THE COUNTY ASSEMBLY;

The Taskforce Report will be submitted to the County Assembly for consideration and possible allocation of budget to settle the pending bills which shall be approved as legitimate. This will be done by way of a supplementary budget.

All chief officers from all departments are advised to provide details relating to the pending bills report to the County Assembly when the report will be tabled there.

Any contractor or member of the public who is aggrieved by the report, or is not satisfied with the findings, is advised to make his/her submissions to the county assembly in writing.

NEED TO INVOLVE YOUTH IN COUNTY TENDERS;

The report has brought to fore the marginalization of Youths, Women and People Living with Disabilities since a select group of contractors consistently won the contracts.

The County has already initiated a process of issuing certificates to these special groups through a County Youth Access to Government Procurement Opportunities (YAGPO).

Youth, women and PWDS are therefore encouraged to register ward based companies with a minimum of 10 persons per company so that they can be considered in County Performance Based Contracts.

Capacity Building on the same will be rolled out in a few days.

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