How Car Dealer Colludes With State Officers in New Vehicle Scam

  • The government has uncovered a scheme used by state officers in the procurement of new motor vehicles leading to loss of millions of taxpayers’ money.

    The state officers collude with a leading motor dealer to deliver refurbished vehicles despite receiving payments for new cars.

    In the scheme, State officials acknowledge delivery of second-hand cars but process payment for new units.

    Government Vehicles

    According to People Daily, the public officers and officials of the firm pocket the difference between the amount a new vehicle costs and refurbished one.

    Following discovery of the scam, the government has reviewed procurement procedures of new motor vehicles.

    “The government has of late noted an emerging trend where ministries/department and accounting units are procuring vehicles outside the framework and at uncompetitive prices leading to inefficient use of public resources,” read a circular from Head of the Public Service Joseph Kinyua.

    The circular was sent to all Principal secretaries, Cabinet secretaries, chief executive officers of constitutional commissions and independent offices and State corporations.

    “Note that this directive also applies to procurement of vehicles in State corporations, constitutional and other commissions, independent offices, the Judiciary and the Legislature as well as vehicles procured through funds from development partners,” the circular stated.

    Kinyua noted that unprocedural purchases have led to wasteful use of resources. 

    The government has been leasing cars from leading dealers with the National Treasury planning to spend Ksh12.8 billion on acquiring vehicles in the current financial year.

    Head of the Public Service Joseph Kinyua