May 16, 2022

Kenya Power fails to account for Sh29.6 billion spent

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Kenya Power has failed to account for Sh29.6 billion, according to the Auditor-General.
The Auditor said that Kenya Power failed to provide documents to support payments to contractors besides the purchase of faulty equipment under the Last Mile Connectivity Project.
“The project had received a total of Sh28.2 billion representing 63 per cent of the approved loan amount of Sh44.7 billion. However, documents in respect of disbursement and payments to contractors were not provided for audit verification,” the audit report says.
“In addition, although the project had a projection of connecting 525,796 customers by the end of the project, only 213,432 had been connected representing 41 per cent of the projection yet disbursement was at 63 per cent.”
The funds are meant to support the Last Mile Connectivity Project, which is funded by the Kenyan government and the African Development Bank (AfDB).
The Auditor said that single prepaid meters purchased from a Chinese company at a cost of Sh1 billion and installed at customers’ premises were faulty.
“The gadgets had been activated by the contractor, implying that customers were purchasing tokens but the Consumer Interface Units (CIU) were not picking the tokens and thus had no access to power,” the auditor said.
Other funds which could not be accounted for include Sh274.3 million spend on consultants whose work could not be ascertained.
“However, site visits by the audit team revealed no evidence of consultants’ personnel’s presence at those sites, raising doubt on whether they had been deployed as per the contract,” the report
“Documents that are key to the procurement of services and works including feasibility studies and surveys, progress reports for projects, technical specifications, bills of quantities and architectural drawings, and environmental and social impacts assessment reports were not provided for audit review.”

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