The Office of the Auditor General, led by Nancy Gathungu on Thursday, May 11, exposed how the defunct Nairobi Metropolitan Services (NMS) paid in excess of Ksh8 million for a project on Thika Road.
Under the Executive Office of the President, NMS made the excess payment while buying streetlights for the Thika Road project in the 2021-2022 financial year.
According to the report, on 8 June 2020, NMS requisitioned 2,000 pcs of 150/180W LEDs at the cost of Ksh29,200 each, as indicated in the contract obtained from Kenya National Highways Authority (KeNHA).
However, led by General Mohammed Badi, NMS blundered by receiving 2,000 pcs at a unit cost of Ksh33,288. That resulted in a price difference of Ksh4,088 for each LED bulb, leading to an overpayment of Ksh8,176,000.
"At the time NMS was procuring the lights for installation at the Nairobi -Thika Highway, the contract between KeNHA and the electricals Company was still in force, and no evidence was provided for audit review to prove that KeNHA had transferred the contracted services to NMS," Auditor General's report read in part.
"In the circumstances, it is impossible to confirm propriety, validity and value for money for the expenditure of Ksh8,176,000 incurred on procurement of street lights.
Auditor General's report also found inefficiencies in other projects, including the construction of Kamitha Road, expanding sewage lines and streets lights in Dandora, Kangemi, Kawangware, Dagoretti Corner, Waithaka, Riruta, Kibera, Korogocho, Mathare, Zimmerman, Thome, Githurai 45, Mwihoko, Kasarani and Mwiki.
Similar inefficiencies were also recorded in different health projects undertaken by NMS.
Auditor General also faulted NMS for the construction of Jevanjee Garden, which she indicated was not completed. In the report, NMS reportedly initiated plans to rehabilitate Jevanjee Gardens for Ksh15 million.
However, an audit inspection of the Project on November 22, 2022, revealed that the Project was still incomplete despite NMS having procured materials, some of which were still on site and exposed to theft, Auditor General observed.
"The Project was behind schedule and value for money for the expenditure incurred on the project may not be realised," Gathungu observed.
Inefficiencies cited by Gathungu reportedly led to increased pending bills worth Ksh14 billion.
NMS was, however, dissolved after Governor Johnson Sakaja ascended into office following the August 9, 2022 General Election.
