Johnston Kavuludi team paid Sh54m rent, no records to support the payment

The National Police Service Commission paid Sh54.3 million as rent to a landlord but has no paperwork to support the payment.

Auditor General Edward Ouko in his report raised questions on the validity of the rent payment for the commission’s offices in Westlands, Nairobi.

The commission occupies four floors at Skypark building, and all the payments made as rent have no paperwork to support the claims.

“No lease agreement has been signed between the landlord and the commission,” said Mr Ouko in his report for the financial year 2014-15.

In this case, Ouko noted that the validity of the annual rental payments cannot be ascertained.

The report further reveals the commission failed to revise downward an inflated contract on refurbishment of buildings that will still see taxpayers pay in excess of Sh50 million despite a Parliamentary committee giving directive on the same.

Audit verification

Further, despite Parliament’s tendering committee meeting the commission on June 3, 2013 and revising downwards a contract on refurbishment of buildings to Sh139 million from Sh189 million, the commission did not submit the adjustments for audit verification, meaning the earlier price of Sh189 million still stands.

“...an indication that the project cost could still have been exaggerated and taxpayers would still bear the cost,” said Ouko.

Evidence to this is that the commission could not justify why it paid the same contractor using a separate service order away from the existing one for the project despite insisting that the adjustment was effected.

“The justification for paying the same contractor using local service order number 1040259 for Sh24.1 million under a separate contract number NBI/DO7/63/2012-13 instead of the existing contract number NBI/D01/81/2012-13 has not been explained,” noted Ouko.

The commission’s fixed assets worth Sh153.7 million include vehicles purchased at a cost of Sh117 million, of which 12 are reportedly missing.

In its defence, the commission explained that the vehicles were handed over for safe custody to the former commission secretary, who did not hand them back to the commission.

“Although the matter was referred to the Director of Criminal Investigation and Director of Public Prosecution, the commission still has no evidence of the vehicles,” said Ouko.