King Abdullah II of Jordan (left) and President Uhuru Kenyatta follow
activities during a joint military training at Embakasi Garrison in
Nairobi on September 26,2016. PHOTO | DENNIS ONSONGO | FILE
Summary
- An audit verification of the aircraft shows that the defects identified at the time of delivery had not been rectified as at the date of inspection in June 2016.
- The report, dated March 16, 2017, shows that the Ministry of Defence procured the aircraft, related services and spare parts through government-to-government negotiations and several signed contracts.
- Records show that the aircraft were delivered, assembled and tested but an inspection undertaken by the ministry’s technocrats revealed a number of defects that have not been corrected to date.
Kenya's military bought seven defective combat aircraft from the
Royal Jordan Air Force it has not used for the past 10 years, bringing
into question whether the public got value for money in the 2007 deal.
Auditor-General
Edward Ouko says audit verification of the aircraft, procured at an
initial cost of $15,291,503 (Sh1.58 billion at current rate), shows that
the defects identified at the time of delivery had not been rectified
as at the date of inspection in June 2016.
“An audit
verification of the aircraft was carried out in June 2016 at Laikipia
Air Base and…audit of fuel and servicing records indicate that the seven
aircraft have not been in operation from the time they were procured,”
Mr Ouko says in a qualified audit opinion that has been submitted to
Parliament.
The report, dated March 16, 2017, shows
that the Ministry of Defence procured the aircraft, related services and
spare parts through government-to-government negotiations and several
signed contracts.
“The purchase price of aircraft
recorded in contract No. RJAF/KAF/2007 dated April 26, 2007 was
US$15,291,503,” Mr Ouko says in his latest audit of the ministry for the
year to June 2016.
He says technical assistance and
maintenance services recorded in the agreement dated April 27, 2007 were
procured at $12,264,995.
“A direct procurement of
supplementary services for the fleet was signed on January 30, 2009 for a
sum of $2,883,561. However, details of these services have not been
provided for audit review contrary to provisions of Section 9 (i)(e) and
(f) of the Public Audit Act, 2015,” Mr Ouko says.
ALSO READ: US now clears sale of Sh26bn arms to Kenya
Defects not fixed
Records
show that the aircraft were delivered, assembled and tested but an
inspection undertaken by the ministry’s technocrats revealed a number of
defects that have not been corrected to date.
Mr Ouko
said an addendum for the purchase of spare parts show that the ministry
procured them at a cost of $12,956,827 on unspecified date through
restricted tendering instead of procuring directly from the specific
aircraft manufacturer.
“I am unable to confirm under
the circumstances whether value for money was obtained in the
procurement of these spare parts or whether payments for the spare parts
were lawfully and effective as required under Article 229(6) of the
Constitution of Kenya 2010,” Mr Ouko says in the report that also
revisits the previous year’s audit issues on the procurement and
utilisation of hydraulic excavators.
The report says
records revealed that the Ministry of Defence bought two Caterpillar 374
DL through direct procurement from Mentrac Kenya Ltd at a cost of
Sh185.3 million instead of Sh40 million, which was the prevailing market
price based on a survey undertaken by the user in the financial year
2011/12.
“No explanation has been given so far for
excess and illegal payment of Sh145,323,993 over and above the market
price,” Mr Ouko says.
No comments:
Post a Comment