Details have emerged of how the National Youth Service (NYS) colluded with the Lands Ministry to award a Ksh56 million tender to a non-existing company.
According to Auditor General Edward Ouko’s 2016-17 audit report, Annuar Investments contracted to supply food and rations, was hurriedly registered half a year after the money was siphoned in a suspected cover up for the irregular transaction.
Appearing before the Public Accounts committee on Thursday, Youth PS Francis Owino defended the ministry from any wrongdoing.
The PS claimed that the department did not have contractors at that time and relied fully on suppliers recommended by the Lands ministry.
“The State Department did not have contractors at the time. This necessitated the adoption of contractors from Lands pursuant to the Public Procurement and Disposal assets 2005,” Owino told the committee.
His explanations, however, did not go well with the MPs present who faulted the ministry for sleeping on the job.
“Even if you did not have contractors, you want to tell us that you entered into a contract and in the process of doing so you did not care to check the legal status of the company?” Ugunja MP and PAC chairman Opiyo Wandayi asked.
“As much as someone gives you contractors you must get the details of the contractor. Your department must at least know who they are dealing with," Suna West MP Peter Masara remarked.
Owino eventually admitted that the department overlooked the matter and informed the committee that the ministry was already in the process of investigating the company.
The PAC Chairman directed the ministry to furnish the committee with all contract documents pertaining to the contract before the close of business on Friday.
