Auditor General Nancy Gathungu has lifted the lid on a government company valued at Ksh305.8 million that is still vacant 15 years after it was purchased.
According to a report by People Daily on Thursday, January 21, the Auditor-General revealed that the Pyrethrum Processing Company of Kenya had purchased the processing plant in 2006 but is yet to put it to use.
She further noted that the taxpayers were highly likely to lose the money because technology advances are expected to render the factory useless.
The management had explained that the factory was purchased to aid in flower deliveries and that its operations had been affected by the embattled industry.
Gathungu, however, observed that the company had not made efforts in helping revive the embattled sector.
"Although the management has explained that the machine was purchased in anticipation of an increase in flower deliveries and that the plant will be commissioned in the future once the industry is revived, no evidence has been presented for the audit to show the steps taken to revive the industry," stated the Auditor-General.
In the report, which was tabled before Parliament, the Auditor General also showed that the company was struggling financially.
As of June 2019, it recorded a loss of Ksh225 million and was working on a negative capital of Ksh481 million.
The audit showed that that the company had net assets of Ksh376 million but was operating on over Ksh857 million liabilities.
"The company is therefore technically insolvent and its continued existence is dependent upon the financial support of the government and its creditors.
"This material uncertainty that casts doubts on the company's ability to continue as a going concern," she added.
Gathungu's office has recently exposed the rot in various government offices including 11 mobile phones that were bought at Ksh1.69 million.
