Auditor general Nancy Gathungu has flagged supplies worth Ksh281 million to the National Youth Service (NYS), raising eyebrows at the already tainted image of the government body.
In her latest audit report, Gathungu flagged the supplies for 20,000 woolen blankets, 126,000 metres of digital camouflage material, 10,000 pairs of high-ankle military boots, canned beef and pineapples, uniform materials, and gumboots.
The supply of camouflage material would cost Ksh74.97 million, woolen blankets Ksh51.4 million, olive green jerseys Ksh49.5 million, canned beef and pineapples Ksh31.74 million, high-ankle military boots Ksh29.8 million, uniforms materials Ksh20.16 million, gumboots Ksh0.95 million and police uniform Ksh23.4 million.
Gathungu discovered several anomalies in the transactions including rejection of discounts by suppliers, payment for goods without confirming delivery and placing orders without approval.
Some suppliers, it was revealed, made supplies before being approved by means of authority to incur expenditure (AIE), in line with Public Finance Management Regulations of 2015. The Regulations prohibit public officers from spending or committing funds before approval through AIE.
For instance, in the supply of canned beef and pineapples, a local purchase order (LPO) was issued on December 4, 2018, over a month before the AIE was approved on January 11, 2019.
To add salt to injury, the voucher for payment was issued on March 22, 2019, a fortnight before an invoice was issued on April 5, 2019. Under normal circumstances in any procurement, the payment voucher is processed based on the invoice, hence it is not clear how the voucher was processed without an invoice.
The Ksh20.16 million was paid days before delivery, the auditor general found. The AIE and authorisation to make payments for the supply were made on June 29 and 30, 2019, respectively, while the payment had already been made on June 27, 2019.
NYS also paid an exorbitant cost of Ksh49.5 million for the purchase of olive-green ribbed jerseys, an amount which was made prematurely. The amount, according to the audit findings, was paid on June 27, 2019, two days before the goods were delivered.
The AIE was granted on June 29, 2019 while the authorisation to make payment was made on June 30, 2019, long after the payment was made. The contract for supply was exaggerated by Ksh3.75 million, with a unit costing Ksh1,750 as compared to prices quoted by other suppliers which were as low as Ksh1,500.
The tender was requisitioned and paid by an official who sat in the tender committee.
The tender for supply of woolen blankets (costing Ksh51.4 million) was flawed, since only six firms participated instead of seven as required, as per the Procurement and Asset Disposal Act, 2015, Section 114(1) (C).