Meru Governor Peter Munya faulted for single sourcing Sh672m goods

The Meru county government has been faulted for using restricted tendering to procure goods and services worth Sh672 million in the first year of its operation.

Auditor General Edward Ouko said this was against the Public Procurement and Disposal Act, 2005 which encouraged open tendering to ensure Government enjoyed the most competitive rates while buying goods and services.

In his report for the 2013-14 financial year, Dr Ouko said the county had a budget of Sh305 million for purchase of motor vehicles and other transport equipments and utilised Sh252 million by the end of the financial year on June 30, 2014.

"Out of this expenditure, Sh85 million was spent in procurement of equipment using restricted tendering," report noted.

Among the items purchased on restricted tendering include a prime mover and one low bed carrier bearing from CMC Motors Group at Sh12.7 million and Sh5 million respectively.

Others are a Komatsu dozer from Pan African Equipment at a cost of Sh28 million and a motor grader and one backhoe loader at Sh30 million and Sh8.8 million respectively, both from Mantrac Kenya.

Ouko also noted that Sh25.3 million of the Sh43.4 million expenditure on research, feasibility studies, project preparation and design and project supervision under expenditure was committed using restricted tendering.

The Auditor General also flagged an expenditure of Sh17.4 million on leasing county offices and residential houses through direct procurement (single sourcing).

CAR LOANS

"There was no justification of using restricted tendering for the procurement of goods and works worth Sh672, 439,239," reads the report.

The auditor recommends that the procurement department be professionalised and procurement rules, procedures and regulations be strictly adhered to.

He also raised queries on the County Assembly Staff Motor Vehicle and Mortgage Scheme.

Information available for audit revealed that the 63 MCAs in the area were advanced Sh5 million each totaling Sh315 million for purchase of motor vehicles and mortgage with the county government being the guarantor.

The car loan and mortgage scheme is financed by Capital Savings and Credit Co-operative Society through an agreement entered on April 24, 2014.

As at May 23, 2015, the county government had paid an interest of Sh1,122,916 on behalf of MCAs without any budgetary provisions, according to Ouko.

"No records were maintained to show the loans were used for the intended purpose," said the report.