NYS gave tenders to highest bidders: Report

Devolution Cabinet Secretary Anne Waiguru

The National Youth Service (NYS) has been awarding contracts to bidders quoting the highest prices, a new Ethics and Anti-Corruption Commission (EACC) audit report has revealed.

The audit further found other malpractices in the service such as altering criteria during evaluation of bids, amendment of bids after the submission deadline, use of non-standard tender documents, unjustified use of direct procurement methods and failure to undertake market surveys to inform procurement planning.

The report was launched Monday at the Kenya School of Monetary Studies in Nairobi by EACC Chief Executive Officers Halakhe Waqo, in the presence of Devolution Cabinet Secretary Anne Waiguru and other ministry officials, including principal secretaries Mwanamaka Amani Mabruki (Devolution) and Peter Mangiti (Planning), and NYS Director Nelson Githinji.

NYS has been on the spot after Sh791 million was stolen through fraudulent procurement payments.

The report says NYS has been undertaking services that are not planned.

Various items

"For instance in 2013/2014 financial year, the service received Sh7.6 billion for construction of 16 dams in one year. Due to pressure of time, some staff engaged in procurement of various items without following laid down procedures," says the report.

It adds in the 2013/2014 fiscal year, prices for various items had been overstated compared to the market price index issued by the Public Procurement Oversight Authority (PPOA) in October 2013

The document shows over Sh64 million was overpriced. For instance, whereas the PPOA had stated the price per unit of desktop computers was Sh44,707, NYS put the price at Sh103,000.

The price of a unit of a laptop as per PPOA would be Sh40,352 but NYS put it at Sh105,000.

According to the report, NYS bought a ream of photocopying papers at Sh1,200 down from PPOA's Sh420, while a slasher cost Sh300 up from Sh169.

The team found out that bidders use different but related companies and cited a case for supply and delivery of uniforms, uniform materials and beddings.

It established two companies - Ms Nicy Company Ltd which was awarded a contract to supply 10,000 berets at Sh399 amounting to Sh3.9 million and Ms Liberty Professional Services that supplied 8,000 wool ribbed jerseys at Sh1,700 each amounting to Sh13.6 million shared the postal address, plot number, manufacturer's authorisation and directors.

Monday, Ms Waiguru said she would overhaul key departments at NYS as recommended by the anti-corruption commission's audit report.

Waiguru, who Monday officially received the report that examined NYS systems and processes from EACC officials, said she hoped implementation of the recommendations would restore public confidence in the service.

"I wrote to EACC in May 2014, asking them to undertake a thorough audit of NYS systems to help us identify where there were weaknesses and potential risks to corruption. I am glad the report is finally complete and it will provide the much-needed perspective," said the CS.

The EACC report that was to advise NYS on ways of sealing loopholes in the system and methods of work at the service, focusing on finance, procurement and internal audit functions, established major weaknesses in the audited departments.

The audit established the youth service was engaging in procurement without approved procurement plans and delays in approving lists of pre-qualified suppliers.