Top officials from the Rural Electrification and Renewable Energy Corporation (REREC) faced intense scrutiny from a parliamentary committee over the alleged mismanagement of Ksh 1.79 billion in public funds.
REREC CEO Rose Mkalama and General Manager of Finance Davis Cheruiyot appeared before the Public Investments Committee (PIC) at Parliament Buildings on July 15.
The grilling came as PIC reviewed REREC's audited financial accounts for the financial years 2020/21 to 2022/23.
During their examination, the committee, chaired by Pokot South MP David Pkosing, highlighted numerous instances of irregular expenditure within the corporation's books.
The lawmakers demanded answers on alleged financial mismanagement, including the irregular expenditure of over Ksh 1.79 billion on land survey services.
The major issue raised by MPs was the payments made to surveyors. According to the audit, REREC paid large amounts for land surveys and did not update maps with the official Directorate of Surveys or regional offices, making the land maps incomplete and inaccurate.
The audit revealed that wayleaves in Kakamega County were granted by individuals occupying lands left by the deceased persons without valid letters of administration. This was a violation of Section 45 of the Law of Succession Act, which prohibits intermeddling in a deceased person’s estate.
Mkalama responded to the questions by stating that the company has established a department to strengthen and analyze the land documents.
“We have now established a Geospatial Department, a Lands Section, and an Advocacy Unit to strengthen internal controls, analyse land documents thoroughly, and sensitize the public on lawful land and wayleave acquisition,” Mkalama told the Committee.
The committee also raised concerns over REREC’s activities, where the Corporation commenced projects without securing the mandatory consents from County Governments, the legal trustees of unregistered community land in Kilifi and Turkana.
The committee also questioned the Ksh 2.25 billion listed under 'trade and other payables' of which Ksh 1.19 billion was unsupported and uninvoiced, and Ksh 830 million had been outstanding for over 90 days.
The REREC officials explained that the amounts were backed by Local Purchase Orders and service entry sheets, and delays were due to standard retention periods.
The officials were also questioned on the Ksh 571 million that was paid to three survey firms for unspecified projects.
The Auditor General found no service orders, contracts, or maps raising concerns about compliance with the Public Procurement and Asset Disposal Act, 2015.
