Massive Irregularities: Audit shows how IEBC lost a billion

Suspended IEBC CEO Ezra Chiloba. Chebukati swore that it will be impossible to allow him resume office on the face of the glaring irregularities. [File, Standard]

An internal audit of procurement of materials for the repeat presidential election in October last year has uncovered massive irregularities and loss of at least Sh1 billion.

The audit report was filed in court by Independent Electoral and Boundaries Commission Chairman Wafula Chebukati as an exhibit to explain why the chief executive, Ezra Chiloba, was sent on a three-month compulsory leave. Among the anomalies were inflated costs that were above the contract price, lack of contract details, extension of the contract beyond required time and payment for goods and services not required during the repeat election.

“There was no value for money on several reviewed tenders. Some were on the higher side, while in other cases, goods and services were delivered way after the election. There was also expenditure incurred on undelivered materials,” indicated the report.

Mr Chebukati's affidavit said the audit report implicated Mr Chiloba in all the wrongdoing and irregularities and that this informed his decision to suspend him until the truth was uncovered.

He said it would be impossible to allow Chiloba to resume office in the face of the glaring irregularities and denied that he disobeyed the court after sending the CEO home soon after the court ordered that he (Chiloba) resume office.

“Since he is the CEO and various issues have emerged surrounding key procurement in last year’s election, we found it necessary to suspend him pending completion of investigations,” said Chebukati.

The internal audit reviewed six tenders awarded during the period of the fresh presidential election, which included the tender for provision of KIEMs, commissioning of a network for result transmission and BVR Infrastructure Security Monitoring Solution.

The audit was done by the IEBC internal audit committee. The committee was chaired by the director of audit, risk and compliance, Obadiah Keitany. The members were George Ongudi, Gladys Mwangi, Fred Kariuki and Reuben Chirchir.

Other tenders reviewed included the provision of the Oracle database and security solution, integrated media campaign consultancy and the tender for supply and delivery of storage expansion for the converged infrastructure.

In the tender for provision of KIEMs, the audit revealed that the cost for procuring the kits for the fresh presidential election was inflated by Sh811 million as the materials would have been cheaper compared to the amount used during the general election.

“The accounting officer should explain reasons for the acquisition of the services from SIS Morpho at high prices when he was mandated to properly manage IEBC assets and ensure the commission received value for money,” said the report.

The tender for the supply and delivery, installation, implementation and commissioning of the network for result transmission, it notes, had more glaring irregularities. In this case, the service provider indicated that it could only supply 1,000 devices but the secretariat illegally increased it to 1,553.

According to the audit, the commission incurred a pending bill of Sh273 million, which would have been avoided.

It recommends that Mr Chiloba should explain why he placed the order for 1,553 transmission units when the service provider had indicated they could only supply 1,000.

“Even the approved procurement requisition was not availed for review as the documents for the additional pay did not form part of the initial payment for the 1,000 pieces of equipment. The accounting officer and finance director should explain how the payments were made,” says the audit.

The audit further revealed that the tender for BVR kits at a cost of Sh435 million was not properly done and wants the accounting officer and director of legal affairs to explain why they entered into the contract without following correct procedures.

Chiloba has sued Chebukati and Commissioners Abdi Guliye and Boya Molu for contempt of court after they suspended him a second time. The case is set for hearing on July 12.