Auditor-General Reveals Controversial KDF Deal That Cost Kenyans Sh1.5 Billion

A report from the Auditor-General Edward Ouko has revealed that seven combat planes purchased from the Royal Jordan Air Force in 2007 have not been used for the past 10 years.

The planes, which were purchased at a cost of  Sh1.58 Billion were inspected at the time of purchase and found to have various defects that were never rectified, rendering the planes useless.

In a qualified audit opinion submitted to Parliament dated March 16th 2017, Ouko states: “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.”

Government records show that the planes were received, assembled and tested after which experts identified various defects that should have been fixed to ensure the planes could be put to proper use. The defects were, however, never dealt with.

“A direct procurement of supplementary services for the fleet was signed on January 30, 2009 for a sum of Sh288,356,100. 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,” Ouko added.

The report reveals that the Ministry of Defence procured the planes, service contracts and spare parts using government-to-government agreements and other signed contracts.

However, the spare-parts deal which was secured through restricted tendering raises further questions, with the Auditor-General terming a payment of Sh 145 Million "illegal".

The report states that spare parts were procured at over four times the market price.

In the report, Ouko noted: “No explanation has been given so far for excess and illegal payment of Sh145,323,993 over and above the market price".

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