Aviation authority paid eight times cost of building wall, auditor-general says

Even after making the inflated payments, the construction had not been completed after three years, the document says.

According to Auditor-General, Edward Ouko, the school’s maintenance department had requested the institution’s director on October 17, 2011 to approve the construction of the wall to “block trespassers from Mradi and Tassia”.

The Kenya Civil Aviation Authority paid eight times the original cost of building a wall round the East African School of Aviation, a report by the auditor-general says.

The project had been estimated to cost Sh1.3 million. The work was site clearance, foundation, walling and steel reinforcements of the 400m wall.

However, a close scrutiny of payment vouchers by auditors showed that Sh8.2 million had been incurred as at June 30, 2014.

Out of this amount, Sh1.3 million had been spent on buying materials in June 2012. A further Sh2.5 million had been used on more materials during the 2013-2014 financial year.

Another expenditure of Sh4.4 million was incurred for the payment of casual workers hired to put up the wall.

“Although the management had estimated the cost of putting up the perimeter wall at Sh1.3 million, a visit in July 2014 confirmed that the wall had not been completed while an expenditure of Sh8.2 million had been incurred,” Mr Ouko says.

“The management has not satisfactorily explained why open tendering was not used in line with the law on public procurement.”


On another case, Mr Ouko says the Agricultural Development Corporation lost Sh36 million through fraudulent transactions involving encashment of 196 cheques by various staff members between 2005 and 2010.

The cheques were cashed by an accountant who also doubles up as the corporation’s bank agent.

Initial investigations revealed that the fraud was perpetuated by recycling and falsifying documents for reimbursement claims, the auditor says.

Although the corporation operated several bank accounts, the report says, the fraud was perpetuated mainly at the National Bank of Kenya branch along Harambee Avenue.

“The case is, however, still in court and until it is fully determined, it is not possible to confirm whether the amount will be recovered,” Mr Ouko says.

The auditor also raised the red flag over the illegal allocation of land belonging to the Kenya Railways Corporation to private developers without consent. The allocation, he says, was either made by the commissioner of lands or local authorities.

“Land measuring approximately three acres within Limuru railway station, constituting industrial plots, was allocated to private developers,” he says.

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