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By Paul Wafula | Published Sun, June 10th 2018 at 00:00, Updated June 10th 2018 at 00:10 GMT +3
Auditors have unearthed yet another scandal in a key Government agency that has seen taxpayers lose billions of shillings through fictitious claims, illegal price escalations and in essence paying hundreds of millions of shillings to companies and individuals for no work.
The Kenya Electricity Transmission Company (Ketraco) is now the latest in what is turning out to be a long list of Government agencies where runaway plunder and loot override public good, common sense and morality.
The scam unearthed by internal auditors now makes the electricity transmission company the fourth State body to be rocked by a scandal after the National Youth Service (NYS), Kenya Power and the Kenya Pipeline Company (KPC).
One of the contractors at Ketraco claimed idling fees for 21 months for his workforce and equipment at a rate of Sh108 million per month for doing nothing. Some expatriates were being paid Sh200,000 per day. These led to a Sh3.8 billion bill slapped on the taxpayer.
The firm allowed a contractor to keep 100 per cent of its staff, even when the project had been stopped for 54 months after landowners blocked it, instead of just keeping a skeleton staff until matters had been resolved. There were also additional claims due to the contractor’s overheads during the delay.
Auditors also flagged variations of contracts whose prices had been set beyond the 20 per cent variation limit stipulated by procurement law. One of the projects was varied by up to 86 per cent, resulting in additional charges of Sh430 million.
The report also found outstanding way-leave compensation amounting to Sh726 million, with another unclear payment of Sh35.6 million made to a landowner in Kajiado.
There was also an inflated land compensation payment of Sh72 million to a software firm and the entity had taken a hit from a presidential directive on 20 per cent top up to compensate landowners.
Sh6.3 billion scam erupts at power transmission firm
Auditors have unearthed yet another scandal in a key Government agency that has seen taxpayers lose billions of shillings through fictitious claims, illegal price escalations and in essence paying hundreds of millions of shillings to companies and individuals for no work.
The Kenya Electricity Transmission Company (Ketraco) is now the latest in what is turning out to be a long list of Government agencies where runaway plunder and loot override public good, common sense and morality.
The scam unearthed by internal auditors now makes the electricity transmission company the fourth State body to be rocked by a scandal after the National Youth Service (NYS), Kenya Power and the Kenya Pipeline Company (KPC).
One of the contractors at Ketraco claimed idling fees for 21 months for his workforce and equipment at a rate of Sh108 million per month for doing nothing. Some expatriates were being paid Sh200,000 per day. These led to a Sh3.8 billion bill slapped on the taxpayer.
The firm allowed a contractor to keep 100 per cent of its staff, even when the project had been stopped for 54 months after landowners blocked it, instead of just keeping a skeleton staff until matters had been resolved. There were also additional claims due to the contractor’s overheads during the delay.
Auditors also flagged variations of contracts whose prices had been set beyond the 20 per cent variation limit stipulated by procurement law. One of the projects was varied by up to 86 per cent, resulting in additional charges of Sh430 million.
The report also found outstanding way-leave compensation amounting to Sh726 million, with another unclear payment of Sh35.6 million made to a landowner in Kajiado.
There was also an inflated land compensation payment of Sh72 million to a software firm and the entity had taken a hit from a presidential directive on 20 per cent top up to compensate landowners.
Sh6.3 billion scam erupts at power transmission firm