Panic
has gripped school principals across the country after the auditor general
implicated 10 national schools for misappropriation of money allocated by the
national treasury and are now set to appear before the Public Accounts
Committee for grilling.
The
committee’s chairman Budalangi MP Ababu Namwamba, has summoned the principals
to account for the funds allocated to their institutions when they were
elevated to national schools. Already, 10 principals have received summons to
appear before PAC.
The
Auditor General in his report for the year 2011-2012, unearthed gross
mismanagement and looting of the said funds. The allocation saw each school get
more than Sh25 million. The principals to be grilled include Friends School
Kamusinga in Western, Nakuru Girls, Limuru Girls, Muthale School in Kitui,
Nairobi School and Kenyatta High in Mwatate.
Others
are Malindi Boys, Masaba High in Trans Nzoia, Kenya High, and Mary Hills School
in Thika, Lenana High and Chepsaita School in Uasin Gishu.
According
to the report, the expenditure relates to disbursements made to newly
established and existing national schools for rehabilitation of buildings and
facilities at the schools. The audit carried out revealed that an amount of
Sh112,687,763.95 was misappropriated in various ways as detailed below:-
At
Friends School Kamusinga, the Auditor General revealed that the school received
a total of Sh25 million in two tranches of Sh12.5m each during 2010/2011 for
rehabilitation works at the school. As at the time of the audit, available
records, namely bank statements and expenditure summaries indicated that the
institution had spent Sh14,224,450 for renovation and rehabilitation works.
However,
no documentary evidence such as payment vouchers, works certificates, and
invoices were made available for audit confirmation. The school’s management
however, explained that the documents were destroyed by fire at the Bungoma
district schools audit office. There was however, no evidence to support the fire
incident and as a result, propriety of the expenditure of Sh14, 224,450 could
not be confirmed.
The
school principal Edwin Namachanja has been under pressure from two Bungoma
civil rights groups, People Against Corruption and Caucus for a Better Bungoma,
who have demanded for his immediate transfer following the report released in
October last year by the Auditor General Edward Ouko that revealed massive
graft at the institution.
At
Nakuru Girls High School, it was allocated Sh25 million for rehabilitation
works and the same was utilised for construction of a classroom block and a
dormitory. The contract for the construction of classrooms was awarded to a
construction company at a contract price of Sh11,381,108 on June 14 2011.
However,
the contract was later varied by Sh3,522,890 or about 31pc to Sh14,903,999
contrary to Section 31(c) of the Public Procurement and Disposal Regulations,
2006. As at the time of the audit, the contractor had been paid the total
contract sum of Sh14,903,999, less 10pc retention fee.
However,
physical verification carried out revealed that floor furnishing, verandah and
finishing works for the ramp had not been completed. No explanation was given
for payment of incomplete works.
Muthale
Girls School was allocated Sh25,000,000 during 2010/2011 for upgrading of
learning facilities. Part of the contract was for construction of a three
storey hostel. The labour contract was awarded for an amount of Sh2,872,005.
The works were due for completion by February 1 2012. Although the school had
paid a total of Sh2,449,896, as at the time of audit, 2012, the works were
still incomplete. No explanation has been given for the delay in completion of
the works, seven months after the deadline.
Kenyatta
High School, Mwatate was also allocated Sh25 million during 2010/2011 being
grants for infrastructure improvement. The school management used the funds
during the year for rehabilitation of 16 classrooms, four laboratories, one
administration block, seven dormitories and one dining hall kitchen complex at
a contract sum of Sh11,849,600.
Records
maintained at the school revealed that the contract price was inflated by
Sh602,039 to Sh12,451,639, to include additional invoices for painting of four
laboratories. The additional cost of Sh602,039 was, however, not justified and
was therefore not a proper charge on public funds.
The
school management also procured 100 desks from Kitiwo Enterprises at Sh387,000
and charged the expenditure to the infrastructure grant. The management however
did not avail documents to support the procurement of the desks. Propriety of
the expenditure of Sh387,000 could therefore not be confirmed.
Malindi
Boys High School also received Sh25million during 2010/2011 for the
rehabilitation of various infrastructures in the school. The school management
identified ten projects estimated to cost Sh27,883,596. The school awarded
labour contracts for builders’ work to two contractors and supply of materials
to four suppliers.
As
at June 30 2012, the school had paid a total of Sh25,876,035 to the labour
contractors and suppliers of materials and equipment. Physical verification at
the school in September, 2012 however, revealed that the projects were between
zero pc to 50pc levels of completion while 93pc of the estimated cost has been
paid. No explanation was provided for the low levels of completion of the
projects in comparison with the expenditure incurred.
Kenya
High School received Sh48 million under the Economic Stimulus Programme for the
construction of three classrooms, expansion of dormitory, renovation of kitchen
and infrastructure improvement of the dining hall.
However,
audit of expenditure documents and physical verification carried out revealed
that the school utilised the whole amount on construction of staff living
quarters (houses), contrary to the ministry’s approved projects. The school
management has not explained the reasons for diversion of project funds from
the original purpose.
Mary
Hill Girls High School management tendered for construction of the proposed
laboratory block in April 2011 and awarded the work to Igegania Builders at a
cost of Sh14,979,002. Although the contract documents indicate that the project
was to be completed in January 2012, as at February 2012, the project had not
been completed and the contractor’s performance bond of Sh14,979,002 had
expired on December 19 2011. By this time, the institution had paid Sh7,417,901
against works done only up to first floor. No explanations were given for the
delayed completion of works at the school.
The
school management further awarded a contract for electrical installation works
at a contract price of Sh2,904,292 which was more by Sh334,810 compared to the
lowest evaluated bidder’s price of Sh2,569,481. No justification was given for
the action which resulted to a loss of Sh334,810 by the school.
Limuru
Girls School received Sh25 million for upgrading and rehabilitation of
facilities. The school management tendered for construction of a dormitory
block and awarded a contract at a cost of Sh23,409,041 which differed with the
price of Sh23,020,812 quoted by the contractor. The difference of Sh388,228 was
occasioned by correction of errors during technical evaluation stage. The
variation of contract price was, however, done without following the
requirements of Section 63 of the Public Procurement and Disposal Regulations
2006.
Further,
due to additional works, the contract was later varied from Sh23,409,041 to
Sh26,700,812. However, the school paid Sh29,200,812 to the contractor,
resulting in an overpayment of Sh2,500,000 above the revised contract sum.
Physical
verification and discussions held with the project management team revealed
that the works were incomplete at approximately 70pc level of completion. The
basis of the additional payment of Sh2,500,000 has not been explained.
Further,
the additional works were later stopped due to termination of the contract by
the school management. The management then advertised for a contract for
completion of Phase 1 of the upper block and ground floor. The contract was
awarded at a cost of Sh3,531,324, an amount which was not in the original
project cost. Under the circumstances, the school’s expansion programme may not
be realized as intended.
Nairobi
school during 2010/2011 financial year, received Sh25million for rehabilitation
of school facilities. To facilitate the project, the school management tendered
for construction of a toilet block and associated electrical and civil works,
and awarded the contract to the fourth lowest bidder at a cost of Sh531,190,
instead of the lowest bidder who had quoted Sh359,773. No explanation was given
why the contract was not awarded to the lowest evaluated bidder which would
have resulted to a saving of Sh171,417.
Lenana
High School received Sh48 million during 2010/2011 and had not been utilised
for the intended purposes by the time of the audit inspection in September,
2012; 16 months after the funds had been received.
The
school had received the funds based on development plan it had submitted to the
ministry and which was approved. The plan included construction of classrooms,
laboratories and a dormitory. The school management did not explain the reasons
for not utilising the funds for the intended purposes, and therefore denying
the students opportunity to benefit from the facilities.
Chepsaita
Secondary School in Uasin Gishu received Sh1,053,066 as capital grant. The
amount was used to fund construction of one laboratory, one classroom and one
pit latrine block at the school in May 2012.
The
ministry of Public Works gave cost estimates of Sh870,000 for the classroom.
The tender was however, awarded to a contractor who quoted a cost of
Sh2,048,990 which exceeded Public Works estimates by Sh1,178,990 or about
136pc. No explanation was provided for the irregular award.
Friends
School Masaba in Trans-Nzoia through the school management instructed a
contractor to commence works for construction of one laboratory block at a
contract price of Sh3,187,150 during the year but without a budgetary provision
for the works.
As
at June 30 2012, the contractor had completed the certified works valued at
Sh1,823,270 and invoiced the school for the works. However, due to lack of
funds, the school has been unable to pay the contractor for works done.
The
awarding of the contract was contrary to Section 26(6) of the Public
Procurement and Disposal Act, 2005, which states that a procuring entity shall
not commence procurement procedures until it is satisfied that sufficient funds
have been set aside in its budget to meet obligations of the resulting
contracts. No explanation has been provided for the unsatisfactory state of
affairs.
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