House team wants ministry probed over use of Sh145m

Defence PS Saitoti Torome. A National Assembly committee wants DPP Noordin Haji to immediately launch investigations into the purchase of two caterpillars at a cost of Sh185 million by the Ministry of Defence. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • The caterpillars were bought through direct procurement from a supplier in the 2011/2012 financial year.
  • The committee wants the DPP to investigate the circumstances under which the irregular procurement was carried out.
  • It also wants him to prosecute members of the Ministerial Tender Committee that approved the procurement.

A National Assembly committee wants the Director of Public Prosecutions Noordin Haji to immediately launch investigations into the purchase of two caterpillars at a cost of Sh185 million by the Ministry of Defence.

A report by the Public Accounts Committee (PAC) tabled in Parliament Thursday revealed that taxpayers lost Sh145 million through the purchase of the two Caterpillar 374DL.

The caterpillars were bought through direct procurement from a supplier in the 2011/2012 financial year.

The committee wants the DPP to investigate the circumstances under which the irregular procurement was carried out.

PROSECUTE MEMBERS

It also wants him to prosecute members of the Ministerial Tender Committee that approved the procurement.

PAC, in its audit report of all ministries, State departments, commissions and independent offices, indicates that the market rate for the two caterpillars was Sh40 million but the ministry paid 185 million, resulting in an excess and illegal payment of Sh145 million.

“The ministry proceeded to purchase the equipment despite knowing that it was overpriced from its own market survey,” reads the report tabled by Ugunja MP Opiyo Wandayi.

“Under the circumstances, it is not possible to confirm that value for money was obtained in an expenditure totalling Sh185, 323,994.10 as required by section 68 (1) (b) of the Public Finance Management Act, 2012,” reads the report.

According to the report, the ministry also failed to table any evidence to demonstrate that buying the caterpillars through direct procurement was conducted in accordance with procurement laws, and that value for money was obtained in an expenditure totalling Sh185 million.

RESPONSE

“The ministry bought two caterpillars through direct procurement and did not table any reasons disclosing the ground of urgency pursuant to the provisions of section 74 of the Public Procurement and Disposal Act of 2005,” reads the report.

The committee also found that minutes of the ministerial tender committee were missing, and directed the accounting officer to provide them.

The committee found that there was no urgency in the purchase of the two heavy duty excavators for the purpose of road construction, civil works and disaster management as records reveal that they have never been used except for training, hence no justification for the huge expenditure.

BUILD DAMS

When Defence PS Saitoti Torome appeared before PAC in July, he said the excavators were bought to construct dams and sink boreholes in the North Rift in support of a security programme dubbed ‘Operation Dumisha Amani’.

He said the equipment could only be supplied by the local agent of the manufacturer, Mantrac, and was, therefore, directly procured as per Section 74 of the Procurement Act.

He said that by the time procurement was completed, the security operation had ended, giving the false impression that the equipment was idle.

Mr Torome added that the contract price was commensurate with market rates at the time of the purchase.