THE 2014 Auditor General (AG)’s report on accounts of parastatal bodies and other statutory institutions has revealed that the Road Development Agency (RDA) invested K3 million from operational funds without obtaining Treasury authority.
According to the report, this is contrary to Section 22 (1), and (2) and (3) of the Public Finance Act number 15 of 2004.
The Act states that monies standing to the credit of the republic in the Treasury account or any other bank account and not required for any purpose may be authorised to be invested by the Secretary to the Treasury with a bank.
This must be at call or subject to notice not exceeding 12 months or in any of the investments authorised by law for the investment of trustee funds.
The report has also revealed that amounts totalling K68,800 were paid to the board chairperson as sitting allowances for board meetings during the period December 26, 2012 to July 7, 2013 despite not having a substantive board in place.
“Contrary to the provisions of the Act, RDA operated without a board during the period from January 2012 to December 2013 as only the chairperson was in place. In addition, although other board members were appointed in December 2013, as of November 2015, there was no representation from the Attorney General’s chambers,” it reads.
The audit report further reveals failure by the RDA to avail contract detail involving the partitioning and installation of air conditioners.
It states that there was no contract availed for audit scrutiny for the partitioning of the office block and, therefore, the total contract sum could not be established.
The audit report also revealed irregular sales of motor vehicles to officers at the agency.
These include the director and chief executive officer (CEO), former CEO, senior engineer, procurement manager and a former director and CEO.
“During the period under review, five motor vehicles purchased at a total cost of K3,697,611 and used for periods ranging between one and 21 months were sold to five officers at prices in amounts totalling K751,503.
“In this regard, the decision to sell the vehicle at such reduced prices for vehicles purchased at very high costs and used within such short periods was against the conditions of service and, therefore, irregular,” the report reveals.